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Sunday, August 28, 2005

Loreal and HR

Loreal started from a hair care product company to become one of the largest beauty and cosmetic company in the world.It CEO Mr.Owen-Jones has been listed as 100 most influencial people in the world by Times Magazine. How do they do that. They do it via merger and acquisition. Over the years, Loreal has acquired numereous brand worldwide. One of the brand it acquired is Helena Rubinstein or call HR.

L'Oreal Professional is the brand for it hair care product. Whereas L'Oreal Parisis the brand for it cosmetic and skin care product. It skin care product technology actually is using technology of HR. A company it acquired in 1989. HR is a well known brand in US found by Helena Rubinstein(1870-1965).

With technology from HR, together with other brand it acquired. Loreal become the largest company in beauty and cosmetic industry in the world.

HR closet competitors Elizaberth Arden. Elizaberth Arden, a company found by Elizaberth Arden is not a well known brand in Malaysia. I do saw some recomendation by Chinese media in Malaysia occasionally and it product sold in SaSa shop in Malaysia. Apparently the brand has acquired by Unilever at some point of time.However, it product does not adjusted to suite the weather in Asia, thus, Asian feel it is too oily and is not popular in asia.



Elizaberth Arden's (1884-1966) product is the only product that able to compete against HR. As Loreal's product mainly using technology of HR. Unilever Group who own Elizabeth Arden is rank second largest company in beauty and cosmetic industry in the world after Loreal. But unlike Loreal which derive nore than 90% of sales from beauty and cosmetic industry. Only 19% of Unilever income are from beauty and cosmetic industry.

However, HR are well known in it technology and product quality whereas Elizaberth Arden's strenght are in Product packaging and Design.


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