The world’s middle class is undergoing constant growth and luxury consumption is growing with it. This phenomenon opens new perspectives for development, as long as industrial resources are adapted to this new international factor. The key issue is to satisfy a variety of consumer desires for luxury goods all over the world that meet the same quality standards. This approach targets excellence from the design phase to the point-of-sale in an environment of increased buying power driven by the emergence of a clientele seeking ultra-luxury goods.
To meet this growing demand for luxury goods around the world and to satisfy aspirations for unique, exceptional products, the L’Oréal Group combines artistic craftsmanship with industrial excellence. The challenge is to succeed in combining image with quality and a concern for detail with mass production. The Lancôme fragrance “La Vie est Belle” illustrates this control: its pack alone required 5 phases for a launch production of 2.6 million units.
L’Oréal must also satisfy the expectations of a demanding clientele looking for products that are constantly more precious and unique. This segment is characterised by very limited series and may be comparable to hand craftsmanship; Armani’s “La Femme Cristal” fragrance, produced in 100 unique, engraved, numbered pieces, is a perfect example. Each bottle, selling for 5000 euros, was produced by the Cristallerie Royale de Saint Louis which truly demonstrates the extent of its talent here: a hand-blown crystal droplet containing the perfume inserted into a hand-chiselled 10-faceted crystal shell crafted by the Meilleurs Ouvriers de France masters.
Did you know?
1/ According to a study conducted in October 2012 by Bain & Company for the Altagamma foundation, one-fourth of the world’s luxury purchases were made by Chinese consumers in 2012. These relatively young Chinese luxury consumers are also eager for cosmetics.
2/ According to Bain & Company, the luxury market could reach 230 billion euros by 2014. Between 1995 and 2011, this market grew from 77 billion to 191 billion euros.
3/ Over 40% of luxury purchases come from tourism. The travel retail industry is in fact, a key growth driver for the L'Oréal Luxe division.