L'Oreal is the world's number one cosmetics company, with more than 500 different brands in over 100 countries to set up a brand division. In a highly competitive market, L'Oreal not only make full use of the overall competitive advantage, but also take into account the relative independence of different brands. In order to solve this contradiction, L'Oreal China's first trial matrix organizational structure, if successful, will also be introduced to the world. In the new matrix organizational structure (Figure -1), we can see the L'Oreal product categories according to different requirements of different departments corresponding responsibilities and rights. Because the local organizers to establish contacts directly with consumers, therefore, this organizational structure can be more quickly and effectively to meet the challenges of competitors or potential competitors.

As an emerging market, China has attracted the attention of senior management of L'Oreal. In 1997, L'Oreal being regarded as China's business hub and supply center in Shanghai Asia-Pacific region set up L'Oreal China. Initially, the L'Oreal headquarters to the Chinese management personnel stationed three were responsible for manufacturing, finance and general management. In order to strengthen communication with local staff, L'Oreal has appointed a Chinese man in charge of human resources, the appointment of three in the mass cosmetics market, with extensive experience of the French were as L'Oreal, Vichy, Maybelline and Lancome's Brand Manager (Figure -3). Most middle managers have, such as cosmetics, consumer goods multinational work experience and the like locals. In recent years, the completion of the organizational structure set up, L'Oreal continuing to tap the talent on campus and provide them with a wide range of career development training. Proved, these new forces to achieve rapid growth.

Given the different levels of management needs, L'Oreal distribution of power is so:

· Grass-roots level managers: they are L'Oreal China's business and competitive basis, in the context of their business on short-term and long-term performance of responsible;

· Middle managers: They are responsible for financial, human and information resources deployment;

· Senior managers: they pay more attention to the establishment of a good organization as a whole.

In the L'Oreal China, each brand has its own marketing department and sales department, rather than R & D department. But in Japan, France and other places has a different laboratories to conduct a comprehensive research and development. For different brands and specific market conditions, L'Oreal China in the marketing properly adjust its advertising strategy.

Composed of senior managers in China, the Executive Committee of L'Oreal China, they hold regular meetings to discuss the decision-making. At the same time, China also held, such as L'Oreal Orientation, departmental meetings and other relatively low-level meetings. At each meeting, senior managers will emphasize the importance of changes in the organizational structure and collect on the implementation of recommendations. These meetings gave L'Oreal China, as a whole, functioning in harmony.

As a French company, L'Oreal focus on flexibility and adaptability of the organization.

Encourages each employee participation in decision making and provide them with the opportunity to express their career development needs. Accordingly, the company's appointment, and taking into account the personal opinions of staff. In addition, the company encourages employees to put forward different views. Company believes that the confrontation caused by the differences can maintain our ability to innovate and to stimulate new ideas. Furthermore, managers at all levels through various channels to communicate frequently with subordinates, when the employee and his direct leadership of friction, he reported directly to a higher level. Companies to encourage those talented, long nurtured by traditional Chinese concepts of staff, to give up absolute obedience and learn to bold and courageous. In the cosmetics industry, creativity and imagination is the catalyst for their success.

Over the past 10 years, L'Oreal for research and development costs amounted to 3.2 billion U.S. dollars, higher than all its competitors. These studies take so that L'Oreal updated every three years, nearly 50% of the production line, an annual average of 300 patent applications. In the continuing need for new products, the cosmetics industry, L'Oreal, which is an advantage. L'Oreal set up R & D center in Shanghai to strengthen the competitiveness of their products and make it more suitable for Chinese customers.

L'Oreal to promote innovation in this big business is one way to promote different brands in different regions compete with each other. L'Oreal in favor of its competition among different brands. It establishes a research center with another rivalry, it built a marketing team to contend with another branch. They still fight each other in the process as well as down its competitors. L'Oreal to the Chinese market by continuously introducing new brands to enhance the self-competition.