Enhancing all forms of beauty on every continent

INTERNATIONAL
Enhancing all forms of
beauty on every continent
L’Oréal’s brands are dedicated to beauty on every continent,
with a constantly increasing determination to adapt to cultural diversity.
Western Europe p.26
North America p.28
Emerging markets p.30
26 _ INTERNATIONAL
WESTERN EUROPE
Growth momentum restored
Sales for all divisions confirm that markets in Western Europe are growing steadily again, particularly in Germany,
the United Kingdom and Spain. Like-for-like sales growth was +3.5%. All the countries achieved positive growth
scores, backed up by lively launch activity in all the group’s brands.
6,992
million euros of consolidated sales
in 2006
46.6%
of total group consolidated
cosmetics sales
+3.5%
like-for-like growth
GERMANY
Growth continues
for Redken
R EDKEN ’s growth is continuing in
Germany, with another good year in
2006. Results for the hair colourant
line were good, with Color Fusion
and Shades EQ performing particularly well. But the star performer was
haircare, with the launch of the new
Blonde Glam range of tailor-made
treatment for blond hair with and
without highlights.
More than ever before, REDKEN 5TH
AVENUE NYC is the hip American
brand for salons eager to stand out
from the crowd.
INTERNATIONAL _ WESTERN EUROPE _ 27
SPAIN
Kiehl’s seduces Madrid
The opening of the first KIEHL’s store in Madrid at the end of April
2006 proved an immediate success. Whilst in initial market launch
phase in Spain, the brand is meeting aspirations of consumers
who are looking for naturally-inspired products and brands with
character embodying genuine values. Thanks to the brand’s
individual, personalised and highly original approach, press and
opinion leaders have leant unconditional support for its market
entrance.
Building on attentive service and a generous sampling policy, word
of mouth recommendations has done the rest, ensuring high footfall for the Madrid store.
In 2006, the opening of the Madrid store was followed by others in
Hamburg, Milan, Barcelona and Zurich. The roll-out will continue
in 2007 as more stores are opened.
UNITED KINGDOM
L’Oréal Paris Beauty Bars prove successful
In the United Kingdom, L’ORÉAL PARIS successfully tested a new
concept: self-service beauty bars in the busiest stores. This move
strengthens the image of L’ORÉAL PARIS as an “accessible luxury
brand”.
The design of the Beauty Bar encourages consumers to switch
rapidly from make-up to skincare. Advice and application tech-
niques are offered by L’ORÉAL PARIS experts, alongside the latest
fashion trends. Bright visual materials and plasma screens highlight
the latest launches and make-up demonstrations, such as those
of James Kaliardos at London Fashion Week. For big occasions,
beauty advisors offer a personalised diagnosis and make-up suggestions. This original initiative is being rolled out in 2007.
28 _ INTERNATIONAL
NORTH AMERICA
Further advances in a context of retail consolidation
Like-for-like sales growth in North America amounted to +2.7%. Against a background of consolidation in the retail
sector, the divisions’ development continued in 2006.
Every division won market share in a large number of market segments: in hair salons sales, consumer make-up,
facial skincare and fragrances in selective channels.
3,954
million euros of consolidated sales
in 2006
26.3%
of total group consolidated
cosmetics sales
+2.7%
like-for-like growth
UNITED STATES
Active Cosmetics: health,
a path towards beauty
American consumers are increasingly well informed
when it comes to health and well-being. They are
constantly on the lookout for information about effective and scientifically validated skincare products.
The VICHY brand was officially launched in the United
States in 2006. To reach out to the maximum number
of consumers, VICHY took an innovative step by creating Dermo Skincare Centers. These centres offer
customers information together with personalised and
professional advice about skincare. Through the opening of 400 Dermo Skincare Centers in the American
drugstore network, LA ROCHE-POSAY’s presence was
extended in 2006. The brand also celebrated another
victory when the FDA (Food and Drug Administration)
agreed to authorise the marketing in the United States
of Anthelios SX, a moisturising cream with sun protection. Anthelios SX is the first L’Oréal product with a patented UVA Mexoryl SX sun filter to be approved for sale
in the United States.
INTERNATIONAL _ NORTH AMERICA _ 29
UNITED STATES
L’Oréal Paris and Maybelline New York:
winning make-up
With highly innovative launches, L’ORÉAL PARIS and MAYBELLINE NEW YORK
strengthened their position in the consumer cosmetics market in 2006.
L’ORÉAL PARIS appealed to consumers with a taste for colour with the
launch of HIP High Intensity Pigments. This bold new make-up features
a patented L’Oréal innovation, which enables uniform colour distribution, through the use of L’Oréal-owned technology which increases
colour pigmentation. Other L’ORÉAL PARIS successes include Bare Naturale Mineral Makeup, which is based on a microrefined mineral powder,
and Color Riche Star Secrets, a limited edition lipstick.
MAYBELLINE NEW YORK announced Superstay Lipcolor a new generation of
long-lasting lipsticks with a patented formula which lasts for 16 hours.
MAYBELLINE NEW YORK also launched its Pure collection—gentle cosmetics made using natural ingredients, such as aloe and camomile.
In a rapidly growing market, these innovations enabled L’ORÉAL PARIS
and MAYBELLINE NEW YORK to achieve growth rates that outstripped those
of the consumer cosmetics market.
CANADA
Women’s fragrance Armani Code Donna follows
the success of men’s fragrances
The GIORGIO ARMANI brand is continuing its strong growth in Canada,
where Acqua di Giò pour Homme is number one in the men’s
fragrance market. Just behind is Armani Code Homme, number
two on the market.
Following on from the success in the men’s product lines, Armani
Code Donna was launched in 2006. Dedicated to elegant women
whose seductive powers are based on charm, power and mystery,
this launch gave GIORGIO ARMANI double-digit sales growth in 2006.
30 _ INTERNATIONAL
4,065
million euros of consolidated sales
in 2006
27.1%
of total group consolidated
cosmetics sales
+12.7%
like-for-like growth
ON THE EMERGING MARKETS…
… the story continues
All zones outside of Western Europe and North America achieved very strong sales growth in 2006:
+12.7% like-for-like. Eastern Europe and Latin America recorded particularly fast growth with advances of
+22% and +16% respectively. The real driving force for growth comes from the BRIMC countries (Brazil,
Russia, India, Mexico and China), which account for the bulk of the increase.
SOUTH AFRICA
Spectacular start for
Garnier Even
With its new facial skincare range Garnier
Even, the GARNIER brand offers South African
consumers specially formulated products
to moisturise, and enhance the texture and
softness of black skin, whilst making skin
tone more even.
Drawing on the latest technological advances
in exfoliation, sun protection and blemish
treatment, the range proved an immediate
success. Backed up by a specific advertising campaign (TV, press and sales outlets), it
made a substantial contribution to the spectacular growth of the whole GARNIER skincare
range in South Africa.
INTERNATIONAL _ EMERGING MARKETS _ 31
CHINA
Yue-Sai:
new showcases for
a richer offer
The Chinese cosmetics brand YUE S AI was repositioned in 2006, with
revamped advertising and merchandising in department stores. The brand
offers Chinese consumers a flawless
quality of service. Customers have
embraced the new approach, giving
an enthusiastic welcome to the new
anti-ageing line Recharge, launched in
October 2006.
INDIA
Store openings of The Body Shop augur well for the future
In 2006, The Body Shop opened its first seven stores in India with a
local partner. A rapidly developing middle class, whose purchasing
power is steadily increasing, with a growing appetite for naturally
inspired beauty products and toiletries, and strong interest in a
brand which already has a high profile, is the key factor to have
paved the way for an enthusiastic reception for The Body Shop as
it gained its first foothold in India. These initial successes suggest
the brand is fully justified in targeting the opening of some sixty
stores over the next five years.
32 _ INTERNATIONAL _ EMERGING MARKETS
ROMANIA
A winning bet for L’Oréal Paris
After adapting its organisation to the needs of a fast growing country,
L’ORÉAL PARIS and GARNIER saw their sales growth speed up significantly in 2006 thanks to the success of their product initiatives.
The launch of Elsève Nutri-Gloss, in keeping with Romanian women’s aspirations, was one of the main driving forces for L’ORÉAL
PARIS in this country. Just one month after launch in June 2006,
Elsève Nutri-Gloss became the top-selling Elsève product. NutriGloss is the most fashionable haircare product thanks to a highimpact poster campaign and Nutri-Gloss coloured stores.
RUSSIA
Biotherm joins top trio of
selective brands
Launched on the Russian market in 1998,
BIOTHERM’s sales growth rate is now topping
70%. The brand has become one of the top
three selective skincare brands. Its expansion
reflects the very close affinity of its dynamic,
fresh and natural image with the beauty aspirations of Russian consumers. Its success can
also be put down to a product range carefully
adapted to meet the preferences of Russian
women.
The best-selling products are the facial skincare
line Aquasource, whose sales have increased
substantially, and Biofirm Lift in the anti-ageing
segment. In bodycare, Celluli intense Peel was
voted Best Anti-cellulite Product of the Year by
the readers of Cosmopolitan Beauty. Lastly,
in the men’s market, BIOTHERM Homme is the
unchallenged number one in Russia.
INTERNATIONAL _ EMERGING MARKETS _ 33
TURKEY
Innéov,
a promising start
Launched at the end of 2005,
Innéov Nutrikozmetik produced
sensational results in Turkey. They
reflected the success of Innéov
Firmness and of the Innéov Hair
Mass launch.
The three key factors behind these
successes were: the very strong
increase in visibility on pharmacy
shelves as soon as the first product was launched; the support of
scientific spokesmen who made
INNÉOV Firmness the hot news story
in the skincare segment; and lastly
the exceptionally intensive press
and television coverage focused
on the launch.
I NNÉOV , strongly backed up by
pharmacists’ advice, is available
today in 350 pharmacies in Turkey,
and its conquest is continuing.
BRAZIL
Successful
breakthrough for Matrix
Number 1 in American hair salons, MATRIX has
achieved a successful breakthrough in Brazil.
The product approach has been fully adapted
to the needs of Brazilian salons, particularly
with Biolage haircare products used for “biocauterisation”, an exclusive MATRIX service to
repair damaged hair, which involves the successive use of three products and the application of heat. Hair colourants, straightening or
smoothing (relaxamento or escova progressiva): the product range covers the whole
spectrum of services.
To reach out as many salons as possible, MATRIX
set up a network of exclusive distributors to tap
deeply into the potential of this vast market.