The L\'Oreal group, created in 1909 as a small family business, has grown exceedingly since its IPO (initial public offering) on October 8, 1963. Held by the Bettencourt family (27.5%) and Nestle (26.4%), the Group is now a part of the CAC 40. World leader in cosmetics, L\'Oreal has a diversified portfolio of brands and is present in all distribution channels. The group\'s offers are acutely wide ranging, since all branches of the cosmetics industry are represented in its portfolio of products with high quality products through retail business products and dermato-cosmetic products.
This allows the group to be in track of both current products and products with high development potential in the future. The cosmetics market is a market with strong growth potential because of the permanent increase in the number of potential consumers. It is also marked by increased competition. To sustain its leadership in the market, the group seeks to increase its production volumes and lower costs of production to achieve economies of scale. This is materialized by the opening of factories and research centers in Asia and Eastern Europe.
The Group is strengthening it's current position by entering niche markets and promotes its development through organic growth. It is also favored by a policy of active R&D which focuses on product innovation. As for external development, it keeps acquiring many brands. Indeed, the group is present in many countries, in both developed and emerging, and is constantly seeking for new sources of growth.
The current trend of globalization and the strengthening of the Group's strategic position make it however very sensitive in the forex market. We will in our economic, strategic, financial and stock market analysis develop the various points that we have mentioned.
Creation of the company
-1907: Eugene Schueller, a French chemist, develops a formula to dye hair and starts marketing this dye to Parisian hairdressers.
-1909: Creation of the ‘French Society of innocuous hair dyes', which would later become L\'Oreal
-1912: Export to Holland, Austria and Italy (a few years later, the United States, South America, the far east countries and Russia). Today, L\'Oreal is present in all countries of the world.
L\'Oreal will gradually address all the different ranges of the cosmetics sector. The segments in which the group is currently operating in: color, makeup, skin care, fragrances, hair products and cosmetics ethnicity. Recently, Lindsay Owen-Jones, head of L\'Oreal, introduced a capital readjustment. The Bettencourt family (heirs of Schueller) and Nestle, the two main shareholders of the group, ended a thirty-year old agreement, which expired in the spring, and thus have redefined their interests.
Henceforth, the Bettencourt family controls 27.5% of the capital and 28.6% of the voting rights, while Nestle owns 26.4% and 27.5% of the voting rights. The Bettencourt family and Nestle agreed upon the merger of L'oreal and Gesparel. Previously, the former held 51% and the latter held 49% of the Gesparal. The Gesparel Holding Company controls 53.8% of the capital and 71.1% of the voting right of the L'oreal cosmetics group. It has now been abandoned.
Tags: L'oreal, Bettencourt family, niche markets, globalization, production volumes, quality products, Asia and Eastern Europe, cosmetics sector, Gesparel Holding Company
[...] V / profitability of the L'Oreal group ANALYSIS OF PROFITABILITY asset Analyze the economic and financial profitability of the group. It is observed that since 2001, financial performance has improved. In other words, the group's net profit has improved since it was multiplied by 1.74 for three years while over the same period equity have been multiplied by This significant improvement is mainly due to strong sales growth in new geographical areas targeted by the group, including China and India with a growth rate of all other competitors combined and 29% respectively . [...]
[...] We will in our economic, strategic, financial and stock market analysis develop the various points that we have mentioned. Economic analysis of sector I Presentation of the L'OREAL Group 1.1 Creation of the company - 1907: Eugene Schueller, a French chemist, develops a formula to dye hair and starts marketing this dye to Parisian hairdressers. - 1909: Creation of the ‘French Society of innocuous hair dyes', which would later become L'Oreal - 1912: Export to Holland, Austria and Italy few years later, the United States, South America, the far east countries and Russia). [...]
[...] Financial Analysis I / Accounting Principles In their reports on the consolidated accounts, the auditors of L'Oreal has certified that "the accounts are regular and correctly project the assets, financial condition and results of the operations constituted by the companies included in the consolidation. " After reading the annexes relating to accounting principles applied by the group, we can state two points: The commitment of retirement planning at retirement and other employee benefits: Since the beginning of fiscal 2001, the Group accounts for all pension and other employee benefits arising from its participation in country- specific operations. [...]
[...] In addition, Procter & Gamble offers a wider range for men, which is not a developed segment at L'Oreal. As for Unilever, it has established itself as a competitor of consumer products. The low brand image concerning the beauty products of the group could be improved by the Dove campaign, by positioning the brand in the ‘well being' segment Barriers to entry in the sector Research and development is based on the activities of a group of cosmetology. It is both a barrier to financial and technological aspects. [...]
[...] If the major cosmetics groups have the financial capacity to integrate research and development (L'Oreal, LVMH, Procter & Gamble, Shiseido and others), it is not the same for mid-sized brands which outsource their research from independent laboratories because of lack of financial resources (Nickel Sarbec Cosmetics Quest, etc.) With regard to L'Oreal, the R&D in fiscal 2004 amounted to 507 million euros or of sales in 2004. The growth of research costs ( 5.63 was superior to the CA the Group had published ( 3.5 By 2008, the band announced that the share of R&D in its turnover had increased by Study of the external environment Regulatory measures ϖ European regulations Selective fragrances and cosmetics are governed by strict rules that have intensified in recent years for several reasons: The harmonization of laws and regulations within the EU: The Cosmetic Directive 76/768/EEC seeks to protect consumers by regulating the particular composition, packaging and information released by cosmetic products. [...]
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