How Loreal become world largest beauty & cosmetic company

In 1907, Loreal was founded by a French chemist Eugene Schueller in his apartment's kitchen when he created his first hair dyer. He do all the work himself. Doing sales in the morning, delivery in the afternoon and production at night. Only until 1909, he hire his first employee.

How Loreal growth become a world largest company in beauty & cosmetic industry. Actually is via Merger & Acquisition ( M&A ).

In 1934, Loreal acquired a hair shampoo company Monsavon.
In 1935, Loreal launch it first sun protection product Ambrie Solaire.

In 1957, Frabcois Dalle become the 2nd CEO of the company when the founder pass away.

In 1963, Loreal become a public listed company in French and joint venture with Kose to venture into Japan market.

In 1964, Loreal acquired Lancome, this is first time Loreal enter into fragrance and perfume market. It also acquired Garnier, a hair care product.

In 1970, Loreal acquired Biotherm.

In 1973, Loreal acquired a German base Gemey and a pharmaceutical company Synthelabo Pharmaceutical Laboratories.

In 1983, Charles Zviak take over as 3rd CEO. The group R&D team has growth to 1,000 people.

In 1988, current CEO Lindsay Owen-Jones take over as it 4th CEO.

In 1989, Loreal acquired HR , and later La Roche-Posay. Before that, HR has alrealdy acquired Giorgio Armani fragrance and perfume division.

In 1993, It acquired another hair care product inUS, Redken.

In 1996, It acquired Maybelline and venture in to China market aggressively.

In 1998, It acquired a hair care product special for Black and African, SoftSheen Products.

In 2000, It acquired Carson, US haircare product Matrix, niche product Kiehl's and acquired 35% stake in Japanese Designer's brand Shu Uemura.

In 2002, Loreal join-venture with Nestle to form a companuy Inneov.

In 2003, It increase it shares in Shu Uemura to 52% and acquired a brand in China.

As you can see above, Loreal is a company that growth via Merger & Acquisition ( M&A )

Loreal new product under it own brand included Shine Delicieux lipstick.





Technorati Tag: Cosmetic : Beauty

Kiehl's leverage on big S

Loreal, a company that apply strategy that grow via merger & acquisition (M&A), however will maintain the brand they acquired. The Loreal team would spend time understand the brand's history, philosopher of the founder and core value of the brand.

In 2000, Loreal acquired a niche brand Kiehl's. Although the founder family no longer hold any shares in the company. Loreal has promise not to change the spirits of the brand. Loreal never push the product aggressively and comply with the principle of the brand: "Never advertise". Only one outlet in one territory. Minimum size of the outlet and must able to put in a motorbike.....expanding slowly and low profile manner in major city of the world.

Kiehl's founded by a pharmacist family in New York. Kiehl's give a way free samples to building bound with customer ( 30% of whom are men). Their growth via word of mouth method, attracted a group of loyal customer that like their laboratory. Kieh's never advertise. They are very strict on distribution channel as well.

Kiehl's does not put much emphasis on packaging. Basic plastic bottle,list of ingredient on a white label, no photo of young ladies. Print in black and white label without colour.

The price is comparatively higher (Even baby product). However, they have a lot of "Fans" around the world. In Taiwan, because actress Big S used such product. the product run out of stock during their anniversary celebration.

I think Kiehl's is not yet in Malaysia market.

Technorati Tag: Cosmetic : Beauty