L'Oreal created by the French chemist Eugene Schueller, from its inception until now, L'Oréal attaches great importance to scientific research and innovation on the right. Example, L'Oreal would a 3% annual turnover into research and development of new products, while the industry average of less than 2%; it updated every year 20% of the product. In 2002 alone, L'Oreal on the 501 patent applications and has already has 20000 already in force a patented invention. Because L'Oreal convinced that technological innovation is the strength of the United States guarantees. The concept of beauty in different countries, different regions are different, so it never tried to promote a beautiful pattern. The L'Oreal "Beauty" by most down to earth, consolidate basis. For example, in China's footsteps is the case.
In the high-end market, L'Oreal China has basically over other international giants in the lead. However, the size of high-end cosmetics market is only 1.5 billion for crude on the total size of the cosmetics market only about 4%. Account for the lower end of market players in the market, L'Oréal share was small. The continued rapid growth in the future, we must rely on this part of the market.
As early as five years ago, L'Oreal China president Paolo Gasparrini on the plan through acquisitions to expand in the mass market. He encountered a mass market in China, the top three small nurse. L'Oreal then the small side, under the overall nursing, including the brand, production facilities, sales channels, as well as the management team. Since then, the Paolo and from Procter & Gamble grabbed the hands of another mass-market brands - Yue-Sai. This by the renowned Chinese-American, Ms. Yue-Sai Kan was founded in 1992, the mass market high-end brand in China's high-end market sales of around 10 million euros every year. Yue-Sai is in fact as early as L'Oreal has long coveted.
From the acquisition of these two brands of decision-making began, L'Oreal is the largest harvest, whether tangible or intangible, are true. For example, a small nurses from the beginning and spent great efforts to create a construct covering the whole country 28000 sales outlets. L'Oreal and then through market segmentation, brand positioning and channel integrity segments combined. At present, L'Oreal, sales of mid-range products are sold through professional channels, such as L'Oreal professional hair products are sold through professional hair salons, while the Vichy and La Roche-Posay are sold through professional pharmacies; popular products such as Maybelline and Garnier are to take "as easy as possible to buy" strategy. However, L'Oreal in China since the mass of products sales network has not been well established, and still is taking the department store channel, 2003 Maybelline before entering the number of supermarkets, which can be said that L'Oreal Group Achilles heel. Small nurse's sales channels will allow the public to sell the products such as Maybelline into a multiple expansion of the small nurse to bring the best dowry. While the small production base in Yichang nurses output and L'Oreal Suzhou Industrial Park, is roughly equal to the output, can greatly enhance the localization of production capacity L'Oreal, save logistics costs.
Now, L'Oreal in China, both from the tower bottom to the apex of products and brands: there are top Lancome, Biotherm; in the end there is Wei capital, La Roche-Posay; mass consumer goods, there is L'Oreal Paris, Maybelline , Garnier. But for China, the spending power of low market, low-end brands L'Oreal are only part of the Chinese women's choices. Occupy most of the really low-end market, or the local Big Treasure, a small nurse. For L'Oreal, the little nurse did after all L'Oreal skin care products quickly into the Chinese mass market, a shortcut.
Therefore, the acquisition of a small nurses and Yue-Sai to L'Oreal product line has been a very perfect complement, making L'Oreal "pyramid" in a solid tower base that was relatively empty a lot of their products in China, the original brand more than 60% per year growth rate.
Indeed, the pursuit of beauty is the soul of a culture of L'Oreal. L'Oreal is not only selling products, but in the dissemination of a certain lifestyle. Each person living in L'Oreal, through edification, the inevitable will become a L'Oreal soul.
Now, whether in France, Germany, or China, L'Oreal factory roof and walls are mostly constituted by the glass, which will allow their employees to enjoy the genial sunshine. Moderate work in a harmonious atmosphere, the employees can embark on the pursuit of beauty.
Cosmetic industry has such a characteristic of the subject inside the United States, where appropriate, you can play all of the imagination.