AS THE world’s largest cosmetics company, L’Oreal has been a trendsetter in skincare, makeup, perfume, haircare and more since its 1909 inception in Paris. The internationally-renown company recently reported higher-than-expected numbers for its 4th quarter, effectively surpassing competitors within the beauty industry. As worldwide consumers adjusted to the pandemic, L’Oreal was able to benefit from a major shift to online shopping. The company reported a 62% increase in online sales in 2020, whereas luxury retailers took the hit from closed duty-free shops in airports and high-end brick and mortar stores.
Over the previous months, the company has enjoyed international business growth, particularly in China, and has been able to meet consumers’ evolving needs and growing demand for both skincare and hair dye products. Thanks to these adjustments and more, L’Oreal closed out the October-December period at 7.88 billion euros, or $9.56 billion.
Powder Foundation Takes TikTok By Storm
By adjusting to consumers’ shifting needs and contemporary trends, L’Oreal has managed to find success in the midst of a trying economy. The brand gained visibility and profitability when TikTok user @rocio.roses praised L’Oreal Paris’ Infallible Fresh Wear Foundation-in-a-Powder in a 15-second video on the platform. As one of today’s hottest social media apps, TikTok is a powerful tool that has launched singers’ careers, grown artists’ audiences and now, it’s encouraged consumers everywhere to empty drugstore shelves of the Infallible Fresh Wear Foundation-in-a-Powder.
In her short video, @rocio.roses does a side-by-side comparison of the L’Oreal Paris Infallible Fresh Wear Foundation-in-a-Powder and a similar high-end foundation from Dermablend. Using the products on different sides of her face, @rocio.roses shows that the L’Oreal Foundation-in-a-Powder performs just as well — or better — than the more expensive, luxury brand makeup. With more than 5 million viewers to date, this TikTok video is a prime example of how L’Oreal has managed to adapt to the changing times, resulting in boosted sales.
L’Oreal Supports Black-Owned Businesses Through NAACP Partnership
As social equality continues to be a prevalent topic in 2021, L’Oreal has committed to supporting Black-owned businesses by partnering with the NAACP. L’Oreal’s new Inclusive Beauty Fund will offer $10,000 grants to bolster existing Black-owned businesses and services in the beauty sector.
In a statement to Black Enterprise, Chief Diversity & Inclusion Officer of L’Oreal USA, Angela Guy, stated, “As the leading beauty company in the United States, we believe that we have a responsibility to invest in the small business owners and entrepreneurs who are the lifeblood of our dynamic beauty industry.”
Guy goes on to say that L’Oreal hopes that the Inclusive Beauty Fund launch will help the company develop strong relationships with entrepreneurs in the beauty industry. Applications for the grant were accepted until February 18th, 2021, and winners of the Inclusive Beauty Fund grants will be announced in April 2021.
New Water Saver Haircare Puts the Planet First
Alongside their socially-conscious efforts, L’Oreal leadership also emphasizes the importance of environmental preservation with their recent release of hair care products, Water Saver. By partnering with Swiss environmental tech startup, Gjosa, L’Oreal is taking steps to reduce water waste in hair salons with the innovative Water Saver. The Water Saver is a machine that emits a highly-pressurized stream of water that ultimately uses 80% less water overall during a normal hair-washing session. The devices can attach to salon hair-washing stations, making a run-of-the-mill shampoo and conditioning session much more environmentally-conscious.
Gjosa, which means “eruption” in Icelandic, gets its inspiration from geysers. Their forward-thinking technology significantly reduces the amount of water that’s used over the course of a shower, with a hotel test-run showing that the Gjosa devices only used 2.5 liters of water, while a typical shower used 12 liters.
With Water Saver, L’Oreal is proud to partner with Gjosa to change the way that beauty routines, products and services impact the environment as a whole.
L’Oreal Welcomes New Leadership Starting May 2021
In the wake of a series of exciting developments and impressive 4th quarter numbers, L’Oreal is also preparing to welcome a new CEO. Current CEO, Jean Paul Agon, is set to step down from his position in May 2021, handing the position over to his right-hand man, Nicolas Hieronimus.
While the company recorded a 4.1% decrease in sales for 2020, Agon remains positive for the road ahead, saying, “I’m convinced that when we come out of this crisis, it will be like the 1920s. After years of anxiety, there will be a feeling of freedom, of wanting to party and go out and socialize again, and to wear make-up and perfume.”
With these promising prospects and a successful final quarter of 2020, Agon will soon end his 14-year tenure at L’Oreal, during which time he oversaw countless launches, product expansions and company initiatives that helped the company secure the prominent position in the beauty industry that it enjoys today.