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Showing posts with label Maybelline. Show all posts
Showing posts with label Maybelline. Show all posts

Monday, October 24, 2005

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.

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Tuesday, October 04, 2005

Maybelline invent Mascara

In 1913, William, a 19 years old chemist like to help his younger sister Mabel to attract the eye of her admiry. He uses a mixture of chemical together with Vaseline to put on her sister eyelash to make her sister look beauty and attractive. Her sister married to her admiry eventually.

William invented the first Mascara in the history. He used his sister name and the name of his raw material to create a brand name......That how Maybelline born.

William's family operate the business for 50 years. Then, it sold to a drug manufacture Plough in 1967. In 1990, Plough sold the company to an investment group call Wassertein Perella & Company.

Investment banker Bruce Wassertein like to buy a near bankruptcy company, revive the company and dispose off at higher price.

In late 1990, Protect and Gamble ( P&G )buy a cosmetic brand Cover Girl. P&G competitor Unilever eying to buy Maybelline.

Unilever back out eventually. They feel it is difficult to revive Maybelline and do not feel P&G would successfully revive Cover Girl. Loreal CEO feel he able to revive this American brand into a global brand.

To revive a brand does not depend on instinct, Loreal already have similar brand. They have a similar brand in French call Gemey and Jade in German. Loreal feel that by combining Maybelline with it existing 2 brand Gemey and Jade. The deal has more advantage than P&G acquired Cover Girl.

Maybelline already venture to Asia back in 1994, when Loreal acquired Maybelline. Maybelline have penetrate China's market. And have a 300 workers factory in Suzhou. At that point of time, Loreal only has a one man representative office in Shanghai and Beijing respectively.

When Loreal executive visit Maybelline China operation. They discover that they have far behind that P&G in China's market. Thus, they want Maybelline to be a starting base in China, and hope that every Chinese's lady have a Maybelline lipstick.

The merger of 3 brand start immediately. Maybelline star product mascara was introduce quickly into Gemey and Jade preduct line and market it in European Market. Gemey flagship product Volume Express become a product under Maybelline brand as well.

Purchasing of raw material and packaging material quickly reach critical mass to take advantage of economic of scale by requesting a bulk discount. Cost saving quickly turn to budget on advertising and promotion to penetrate market.

They put a New York label under Maybelline. Loreal retain the same advertising company and it slogan at that time:

Maybe she's born with it, maybe it's Maybelline

In Europe, Gemey and Jade would add a Maybelline brand on it packaging. Slowly, it enlarge the Maybelline the make the word Gemey and Jade smaller on it packaging. Today, you still can see Gemey and Jade printed on Maybelline product in Europe.

In 1999, R&D division of Maybelline launch a Nail Polish that able to dry in one minutes. This fulfill the requirement of fast pce environment of office lady. It later make all the product to dry faster, like mascara, eye liner and lip liner.

Water Shine Lipstick is the first "globalize" product that produce by the company. This is also the first product not invent in Europe or US within Loreal Group. It invented in Asia.

Kose was an agent in Japan for Maybelline before takeover of Loreal. Sales of mascara was very good than. After the Loreal take-over, Loreal want lipstick become core product.

Product recommended by US team Moisture Whip too dry. Color and quality also not suitable for Japan market, and it fail in Japan market eventually. Japanese team reinvent the product to make it more suitable for Japanese market.

In August, 2000. Water Shine launch in China, then Japan, then other Asia country. From Tokyo, Shanghai to Singapore. Water Shine lipstick make a record sales.

From Water shine, Maybelline become a global brand. It become the first choice brand for 15-19 Japanese girl. In Taiwan, Maybelline control 40% market shares. Star product mascara even control more than 75%, almost monopoly. In China, Maybelline can sell 10 million units of lipstick per year and growth at 200% per year. In Europe, it control 20% market shares.

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