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Here's Why L'Oreal's Active Cosmetics Is The Highest Growing Segment For The Company And Is Also A Market Leader

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Last year, L'Oreal's Active Cosmetics division (pertaining to sensitive skin or dermatological conditions) had been demonstrating the highest year-on-year sales growth of around 8% (like-for-like) for the company. L'Oreal is the global market leader in this segment. All its geographies showed growth with Latin America, Brazil, Asia and Africa, and the Middle East achieving two-digit growth for 2015.

active cosmetics

(Source: )

(Source: L'Oreal's Annual Report )

Some of the strategies for L'Oreal's success and market leadership in this segment are as follows:

  • L'Oreal's strong partnerships with healthcare professionals help the company to continuously innovate and provide more effective products in this segment.
  • The company's Global Summit of Pharmacy Leaders brought together 300 pharmacists, and pharmacy and drugstore chains, in order to train pharmacists to develop the active cosmetics business and also help them to provide digital sales and skincare solutions.
  • The segment implements a multi-channel approach and digital tools to reach a wider client base. The concept of health combined with beauty is an attractive one which L'Oreal effectively sells through channels including dermacenters, online, and through travel retail.

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Have more questions on L'Oreal ? See the links below.

  • What Is L'Oreal's Fundamental Value On The Basis Of Its Forecasted 2015 Results?
  • How Has L'Oreal's Revenue And EBITDA Composition Changed Over 2012-2016E?
  • L'Oreal: Year 2015 In Review
  • What Is L'Oreal's Fundamental Value Based On 2016 Estimated Numbers?
  • L'Oreal's Q1 2016 Earnings Results
  • How Did The Top Two Beauty Companies Perform In The Fragrance Segment Over The Last Five Years?
  • How Can L'Oreal's Digital Investments Help The Company?
  • Who Relies More On Debt: L'Oreal Or Estee Lauder?
  • What Are Some Of The Trends Expected To Drive The Future Of The Beauty Market?
  • Why Might L'Oréal Be Acquiring Luxury Perfume Brand Atelier Cologne?
  • How Is L'Oreal's Revenue Composition Expected To Trend?
  • How Is L'Oreal's Skincare Business Expected To Trend?
  • Why Does L'Oreal Want To Acquire The Skincare Brand, Société des Thermes de Saint-Gervais-les-Bains?
  • Here's Why L'Oreal's Digital Progress Places It Way Ahead Of Its Peers

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for L'Oreal

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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