Market research firm Euromonitor International’s analyst notes that L’Oréal’s targeted focus on beauty means it has the market recognition to launch a new celeb-led brand and for it to be taken seriously by consumers for quality and performance.
“Unlike most of its key competitors, L’Oréal has an exclusive beauty industry presence, and thus benefits from a targeted focus, and an in-depth and well-segmented portfolio across age and income groups,” explains the firm’s analyst.
“Men’s toiletries is a key growth area in L'Oréal’s diversification efforts.”
Eying up the male market
Euromonitor explains that L’Oréal has made a number of launches within male grooming recently.
It has released products and ranges under the L'Oréal Paris and Garnier brands globally, such as L'Oréal Paris Moisturising Body Lotion Tattooed Skin Reviver, which it claims to have pioneered in tattoo care, and the Hydra Energetic shower gel range for active men.
“Excluding shaving and men’s fragrances, deodorants and skin care are expected to post the highest CAGRs over 2016-2021, both at 4%, with Latin America and Asia Pacific respectively, leading the pack,” says the analyst.
“L’Oréal is resorting to innovative ways to reach out to men. In 2016, at Singapore’s Changi Airport, it collaborated with Philips (in shavers) with a pop-up barber shop, where men receive a professional shaving and grooming service, rounded off with L’Oréal’s Men’s Expert skin care products.”
Elsewhere: revamping mass porfolio
While House 99, Beckham’s line, is being launched under L’Oréal Luxe, Euromonitor suggests that the beauty giant is also taking steps to revitalise its mass market offerings.
“L'Oréal has recognised the need to revamp its mass beauty operations, given growing competition from a number of quarters, including local players, smaller trendy brands in Western markets and the growing propensity of consumers to upgrade to premium brands.
“The company’s strategy to turn around its mass portfolio is well on track.
“Crucial to its turnaround is investment in masstige, especially as consumer trends in regions such as Asia point to greater credit to lower-priced mass brands, with high-functioning formulations, especially those with Korean heritage, signalling that premium labels now compete with masstige brands on count of efficacy but of course, lower price.”