Its made of 3 businesses:
- Skin care
According to Bain&Co. Beauty products represent around 20% of the value of the personal luxury goods market. Fragrances and make-up are the categories more influenced by fashion trends and with high presence of fashion and luxury brands.
Product lifecycle is short, the role of brand image is strong and they are an impulse buying.
There are few large companies that operate as licensee:
- Estée Lauder
L’Oreal is the world leading company in cosmetics and beauty care products. Originally named as Société Francaise des Teintures Inoffensives pour Cheveux and was founded in 1909 in Clichy, in France by chemist and scientist Eugene Schueller. Today company owns 28 international brands, presented in 130 countries, reached 23 billion euro in sales by 2013 with over 77000 employees.
- Consistency of management (company has had just 4 CEOs in a century, by keeping it in the family – both personal and corporate – became a key part of the companys future success)
- Consistency of ownership
Brands are organized by distribution channel in 5 divisions:
- L’Oreal Luxe – Giorgio Armani, Diesel, Victor & Rolf, Ralph Lauren, Lâncome, Biotherm, Helena Rubinstein, Cacharel, Kiehl’s, Shu Uemura
- Professional products – L’Oreal Professional, Redken, Matrix ( distributed through hair salons)
- Active cosmetics – Vichy, La Roche-Posay (distributed through pharmacies and dermatologists)
- Consumer products – L’Oreal Paris, Garnier, Maybelline (distributed through mass-market channels, including hypermarkets, supermarkets and drugstores)
- The Body Shop
Coty, Inc., is an American beauty products manufacturer based in New York founded in Paris, France, by François Coty in 1904. Its main products are fragrances, colour cosmetics and skin and body care products. It is known for its cooperation with designers and celebrities for the creation of fragrances. Its biggest brands, or “power brands” as it calls them, are:
- Calvin Klein (fragrance and cosmetics),
- Chloe (fragrance),
- Marc Jacobs (fragrance),
- Philosophy (beauty),
- Adidas (fragrance and beauty),
- Playboy (fragrance),
- OPI (beauty),
- Rimmel London (make-up)
- Sally Hansen (beauty)
Coty’s manufacturing facilities are located in 5 countries,
Number of employees
|Revenue||US$4.5 billion (2015)|
In 2015, Coty announced it had reached a definitive agreement to purchase some of P&G’s beauty brands for $12.5 billion in a deal that would more than double its sales and transform it into one of the world’s largest cosmetics companies.
In October 2016, the company confirmed it had reached an agreement with Lion Capital LLP to buy Good Hair Day (GHD), a manufacturer of hair care products, for $522 million in cash. The acquisition is due to be completed by the end of 2016.
The Estée Lauder Companies Inc. is an American manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, founded in 1946 in New York. The company owns a diverse portfolio of labels, distributed internationally in up-market department stores, and has its headquarters in Midtown Manhattan, New York City.
US$ 10,968.8 million (2014)
Number of employees
As of 2014 87% of the company stock is owned by the members of the Lauder family.
Portfolio of brands:
- Cosmetics: Estee Lauder, Clinique, MAC Cosmetics, Bobbi Brown,Ojon, Origins, Smashbox, Aerin, Becca, By Kilian, Too Faced, Darphin, Frederic Malle, La Mer, Glamglow, Lab Series
- Fragrance: Aramis & Designer Fragrances, Jo Malone London, Tom Ford, Ermenegildo Zegna, Kiton, Tory Burch, Micharl Kors, Le Labo, RODIN olio lusso, Tommy Hillfiger
- Haircare: Aveda, Bumble & Bumble
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom, Its products include cleaning agents and personal care products. Its product line also included foods and beverages.
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the company, dropping around 100 brands and concentrating on the remaining 65 brands, which produced 95% of the company’s profits. We dont look much into list of brands as in fashion and luxury category, but P&G owns premium brands such as:
- Blue Stratos cologne
- Dolce & Gabbana cologne and perfume
- Dunhill cologne
- Escada perfume
- Gucci cosmetics
- Hugo Boss perfume
- Lacoste colognes