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

La Roche-Posay and Sunway

La Roche-Posay is the only physician dispensed skincare product under Loreal group. Meaning, this product is not sell in department store. You have to see a doctor, physician or dermatologists in order to get such product.

I unable to find La Roche-Posay product on Loreal's Malaysia website. Apparently not on sell in Malaysia market. Amazon.com website also sold out/not available at the moment.

La Roche-Posay is a village 300km in southern part of Paris.With only 1,500 population. However, during holiday season. 4,000 to 5,000 people will enter the village. Not for vacation but for 3 weeks skin care spa treatment.

According to scientific research. La Roche-Posay are only thermal spring water rich in selenium, a powerful antioxidant. and reduce free-radical. This mean it has anti-aging effect on human skin.

In 1617, first analysis report has been published on spring water at La Roche-Posay.Napoleon has build a spa at La Roche-Posay to provided treatment for it army with skin and dermatological problem.

In French, dermatologists can prescript for people with skin and dematological problem to spa and the bill will be pay by government. Unlike in Malyasia, spa in French will be station wil dermatologist.

In 1929, a chemist and dermatologists used spa water to produce skin care product. In 1989, Loreal acquired the brand and in 2003, acquired the whole country village to ensure continues supply of such spa water.

La Roche-Posay always position as Adjunctive Therapy product. Its main customer are physician and dermatologists. Product sold to patient via recommendation of physician and dermatologists.

Unlike normal skin care product that categories it product between oily skin and dry skin. La Roche-Posay categories its product according to skin problem into LIPIKAR" series and sensitive skin for TOLERIANE series.

Like phamaceutical manufacturing company. La Roche-Posay has to publish
it finding on medical journal, to gain trust from physician and pharmacist and build up it brand name. It has a Clinical Test Manager in HQ in French. To coordinate research in 5 different internal laboratory and external laboratory.

Traditional dermatologists use to emphasis less on "beauty" problem of his patient. This force people move to consult beauticien. Without, professional treatment. Some has become worst after seeking treatment from beautician.

Now dermatologists become a channel to become more beauty. La Roche-Posay able to gain more market shares.

However, La Roche-Posay has difficulty to gain more market share as product not available in normal distribution channel. Repeat customer unable to buy such product in the market if they do not want to seek treatment from doctor or dermatologists.

However, physician would cease to recommend it product to it patient if such product available in department store. Thus, it is difficult to make a decision.

New Brand Director Anthony J. Ponsford would like to maintain physician as their core customer. With emphasis on result of clinical test. At the same time, they would try to widen their distribution channel to pharmacy, to be more customer driven.

In first half of 2005, La Roche Posaylaunch it first "whitening" product in Asia.

In 2001, La Roche-Posay in US acquired a similar brand Biometic. It also plan to merge with an internal cosmetic unit PHAS. Thus, La Roche-Posay would have 3 product line cover Professional Physician, Skin care and cosmetic in the near future.

In Malaysia, Sunway City Bhd has acquired a site in Tambun, Ipoh to develop into Sunway City Ipoh. The site have an reknown Tambun Hot springs which I feel can develop into a location like La Roche-Posay in French. Sunway group also has plan to venture into healthcare industry.


Technorati Tag: Cosmetic : Beauty