L’Oréal SA

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LOréal SA

41, rue Martre
92117 Clichy
Telephone: (1) 47 56 70 00
Fax: (1) 47 56 80 02
Web site: http://www.loreal.com

Public Company
Employees: 48,222
Sales: Euro 12.6 billion ($11.9 billion) (2000)
Stock Exchanges: Paris
Ticker Symbol: OR
NAIC: 32562 Toilet Preparation Manufacturing

LOréal SA, one of the largest companies in France, is the worlds largest manufacturer of high-quality cosmetics, perfumes, hair care, and skin care products. Its brands are found in over 150 countries and include such well-known names as Lancôme, Maybelline, Gamier, Redken, and Matrix. The company is known for its involvement in research and developmentit spent 3 percent of sales on cosmetology and dermatology research in 2000and owns a 19.5 percent stake in the pharmaceutical firm Sanofi/Synthélabo. Liliane Bettencourt and her family control 51 percent of Gesparal, a holding company that owns 54 percent of LOréal. The Swiss food giant, Nestlé S.A., owns the remaining 49 percent of Gesparal.

Early 19th Century Origins

LOréals story begins in turn-of-the-century Paris, at a time when women of the demimonde dyed their hair, their choice restricted to fiery red or coal black. In 1907, Eugène Schueller, a young chemist, began to concoct the first synthetic hair dyes by night in his kitchen and sell them to hair salons in the morning under the brand name of Auréole. His strategy was successful; within two years he established the Société Française des Teintures Inoffensives pour Cheveux, which soon afterward became LOréal.

In 1912, the company extended its sales to Austria, Holland and Italy and by 1920 its products were available in a total of 17 countries, including the United States, Brazil, Chile, Peru, Equador, Bolivia, and the Soviet Union, and in the Far East. At this stage, LOréal consisted of three research chemists and ten sales representatives.

Rapid Growth: 1920s50s

Schuellers timing had been singularly fortunate. The end of World War I was celebrated by the Jazz Age, when short hairstyles became fashionable, with a new emphasis on shape and color. By the end of the 1920s, there were 40,000 hair salons in France alone and LOréals new products OCap, Imédia Liquide, and Coloral captured the growing market. In 1928, the company made its first move toward diversification, purchasing the soap company Monsavon.

In the 1930s and 1940s, platinum-haired screen idols such as Jean Harlow and Mae West made blond hair especially popular and bleaches such as LOréal Blanc sold well. LOréal was quick to make use of both old and new media to promote its products. In 1933, Schueller commissioned famous artists of the time to design posters and also launched his own womens magazine, Votre Beauté. Dop, the first mass-market shampoo, was promoted through childrens hair-lathering competitions at the highly popular French circuses, and by 1938 LOréal was advertising its hair products with radio jingles.

During this period, LOréal demonstrated its ability to meet new consumer demands. When the Front Populaire won the 1936 elections and introduced the first paid holidays for French workers, LOréals Ambre Solaire was ready to capture the new market for suntan lotions. Meanwhile, the companys sales network was expanding on both a national and an international scale. Products began to be sold through pharmacies and perfumers and new Italian, Belgian, and Danish subsidiaries were established between 1936 and 1937.

Even the outbreak of World War II in 1939 failed to curb the companys growth. At a time of strict rationing, women permed their hair and bought cosmetics to boost their morale. LOréal launched the first cold permanent wave product, Oréol, in 1945. At the same time, the company continued to expand; by the end of the war there were 25 research chemists and distribution had been extended to the United Kingdom, Argentina, and Algeria.

During this period, François Dalle and Charles Zviak joined the group, both recruited by Monsavon at a time when the cosmetics industry held far less attraction for graduate chemical engineers than the atomic-energy or oil industries. Both men would play an important role in the companys future; by 1948, Dalle had already been appointed joint general manager of LOréal.

The consumer boom of the 1950s and the arrival of new blond screen idols Marilyn Monroe and Brigitte Bardot (originally a brunette) meant further expansion for LOréal. By 1950, a research-and-development team of 100 chemists had created further innovative products, including the first lightening tint, Imédia D, introduced in 1951, and the first coloring shampoo, Colorelle, introduced in 1955, which answered an increasing demand for subtlety. The company advanced further into the field of skin care, entering into technological agreements with the company Vichy, in 1954. Vichy was to become part of the LOréal group in 1980.

Eugène Schuellers promotional talents were recognized in 1953 when he was awarded an advertising Oscar. Schueller died in 1957 and François Dalle took over as chairman and CEO at 39 years of age.

Focus on R&D and Acquisitions: 1960s70s

The 1960s were years of revolution, both cultural and commercial. As music and fashion became increasingly teen-oriented, there was a growing interest in conservingor simulatingyouthful looks. At the same time hundreds of new boutiques, supermarkets, and chain stores sprang up to supply this rapidly growing market. LOréal made a growing commitment to capital investment. In 1960, a new research-and-production center was established in Aulnay-sous-Bois, bringing the number of research staff up to 300. In 1963 and 1964, the company opened new cosmetological and bacteriological facilities, evidence of a highly scientific approach to skin care. Another production unit, Soprocos, opened in St. Quentin in 1965, and over the decade new distribution outlets were established in Uruguay, Algeria, Canada, Mexico, and Peru. LOréal was listed on the French stock exchange in 1963, during a period of restructuring within the group. In 1962, owing to the boom in hair-product sales, LOréal sold Monsavon in order to concentrate on its core business. At the same time it bought the hair-hygiene specialist Cadoricin. In 1964, LOréal bought Jacques Fath perfumes and a year later Lancôme thereby gaining a significant entry into the high-quality skin-care, make-up, and perfume market and gaining increased access to perfumery outlets. Gamier, a hair-product company, and Laboratoires dAnglas were also added to the group. In 1968, the company took major stakes in Golden in the United Kingdom and in Ruby, a personal hygiene and household products manufacturer. In the same year, LOréal bought the fashion and perfumes house André Courrèges.

With increased resources and expertise, LOréal launched a number of successful products, many of which are market leaders to this day. These included the hair spray Elnett, Récital hair dyes, and the perfume Fidji. Fidji was launched under the Guy Laroche brand name.

In 1969, LOréal recruited a young Welshman, Lindsay Owen-Jones, from the prestigious Fontainebleau business school INSEAD. An Oxford languages graduate, he would go on to become the fourth chairman and managing director of LOréal. At the age of 25, he became general manager of LOréals public-products division in Belgium and turned around unprofitable subsidiaries in France and Italy, before going to the United States to take charge of LOréals distributor, Cosmair Inc. in 1980.

LOréal benefited from the emphasis on health and fitness in the 1970s. From this time onwards, LOréals earnings outstripped those of any other French blue chip and grew twice as fast as the cosmetics-industry average. LOréals success permitted further commitment to research and development; the number of research staff rose from 500 in 1970 to 750 in 1974. New production facilities were opened in France and in 1979 the International Centre for Dermatological Research was established at Sofia-Antipolis, in the south of France, for the treatment of skin disorders and aging.

Over the decade, structural and tactical changes were made within the group, based on the findings of the 1969 management study done by McKinsey & Co. The year 1970 saw the establishment of new operational divisions and management structure. A few years later, the company began to speed up the process of internationalization, with particular emphasis on New Zealand, Australia, Japan, and Hong Kong. In 1976, LOréal signed a technical-assistance contract with the Soviet Union.

Company Perspectives:

Our Professional Products Division strives to promote the global development of highly innovative and exclusive hair care products for salon use, and the expansion of the salon profession through a policy of active partnership centered on hairdresser training. The mission of our Consumer Products Division is to develop beauty products for the widest possible range of customers by offering highly innovative products at competitive prices through mass-market retail channels. The Luxury Products Division devotes itself to maintaining the highest possible quality in its products, packaging, merchandising, and communications, thus confirming the brands as world-renowned signatures. And our Active Cosmetics Department strives to create and develop dermo-cosmetic healthcare brands that meet the highest standards of skin care safety and effectiveness, as proven by clinical tests.

Expansion into overseas marketsparticularly Japanwas aided greatly by the companys new alliance with the Swiss foods giant Nestlé S.A., to whom Eugène Schuellers daughter, Madame Liliane Bettencourt, sold nearly half of her LOréal stock in 1974. The two allies established a French holding company, Gesparal51 percent-owned by Bettencourt and 49 percent-owned by Nestlé. Gesparal controlled 72 percent of LOréals voting rights, while Bettencourt remained largest individual shareholder of Nestlé, holding roughly 5 percent.

Throughout the 1970s, LOréal continued to make purchases within the cosmetics and hair-care industry: Biotherm in 1970; Gemey, Ricils, and Jeanne Piaubert in 1973; and Roja in 1975. The latter merged with Gamier in 1978. This was also a time for diversification for LOréal. In 1973, it took a controlling stake of 53.4 percent in the pharmaceutical company Synthelabo, a specialist in the production of cardiovascular drugs and hospital materials, followed in 1979 by the purchase of Metabio-Joullie, manufacturer of aspirins, over-the-counter drugs, veterinary, cosmetic, and dietary items. Metabio-Joullie and Synthelabo were merged in 1980 under the latters name. In 1977, LOréal ventured into another complementary field, magazine publishing, taking stakes in Marie-Claire Album and Interedi-Cosmopolitan.

Meanwhile, in the new division Parfums et Beauté International, several of LOréals most successful products were launchedVichys moisturizer Equalia and the Cacharel perfume Anais Anais, reckoned to be the worlds best-selling perfume. In addition, the well-known Kérastase hair products were redesigned.

Continued Success: 1980s

The 1980s were particularly favorable for LOréal. François Dalle won the post of first vice-president on Nestlés administrative council, the title of Man of the Year in the chemicals and cosmetics sector from the Fragrance Foundation of the United States, and title of Manager of the Year from the Nouvel Economiste. In 1984, he gave up the leadership of LOréal, although he continued to act as chairman of the groups strategic committee. The position of chairman and CEO went to Charles Zviak. Lindsay Owen-Jones became vice-president and Marc Ladreit de Lacharrière, joint vice-president, soon to take control of the companys financial policy.

This event was followed by some restructuring within the group; in 1985 the Parfums et Beauté division was split into three departmentsLancome/Piaubert, perfumes, and active cosmeticsand five geographical areas. At the same time the new management clearly felt it necessary to centralize control of the companys finances, and in 1987 a financial bulletin was issued announcing the creation of LOréal Finances, which would implement the financial strategy established approximately ten years before.

In 1986, LOréals shares were distributed to investors outside France for the first time when the company raised FFrl.4 billion through a one-for-ten rights issue, offering new shares to stockholders. This was followed, in 1987, by a one-for-five stock split.

At this time, LOréal began to play an increasingly active role in the management of Synthelabo, which, after merging with Metabio-Joullie, had become Frances third-largest pharmaceutical company. Synthelabos research-and-development budget was increased considerably, allowing the company in 1982 to become the first private laboratory to participate in the World Health Organizations project for research and education in neuroscience.

During the 1980s, Synthelabo enhanced its international status, setting up joint marketing affiliates in the United States and Britain with the U.S. company G.D. Searle, and establishing joint ventures in Japan with Fujisawa and Mitsubishi Kasei. The company also took controlling stakes in Kramer of Switzerland, in 1982, and LIRCA of Italy in 1983. Nevertheless, Synthelabo continued to report poor sales figures, owing to difficulty in updating its product line and unfavorable market conditions in France. LOréal subsequently reiterated its commitment to Synthelabo, keeping restructuring to a minimum and increasing its holding from 63 percent to 65 percent after October 1987s Black Monday, when the shares fell considerably. LOréal saw that the solution to Synthelabos problems lay in extending its overseas sales, thereby offsetting unfavorable domestic pricing and reimbursement policies. By the end of the decade, profitability had improved and some promising new drugs were ready to be approved for marketing in the 1990s.

Key Dates:

Eugène Schueller begins to concoct the first synthetic hair dyes and sells them under the brand name of Auréole.
The company expands to Austria, Holland, and Italy.
The firms products are now available in the U.S., Brazil, Chile, Peru, Ecuador, Bolivia, the Soviet Union, and the Far East.
Monsavon, a soap company, is acquired.
Famous artists are commissioned to design LOréal posters; the magazine Votre Beauté is launched.
The company advertises its hair products on the radio.
LOréal launches the first cold permanent wave product, Oréol.
The firm develops a research and development team of 100 chemists.
The first coloring shampoo, Colorelle, is introduced.
The company lists on the French stock exchange.
Lindsay Owen-Jones joins the firm.
LOréal purchases a 53.4 percent interest in Synthelabo.
Eugène Schuellers daughter, Madame Liliane Bettencourt, sells nearly half of her LOréal stock to Nestlé S.A.
The company buys stakes in magazines Marie-Claire Album and Interedi-Cosmopolitan.
The firm acquires Helena Rubenstein Inc.; Owens-Jones is named chairman and CEO.
Control of Cosmair Inc. is purchased from Nestlé S.A. and Bettencourt.
The Maybelline brand is acquired.
LOréal Retail is formed from the merger of the U.S. hair-care and cosmetics groups.
Soft Sheen Products Inc. is acquired.
Elf Aquitaine and LOréal merge their pharmaceutical subsidiaries to create Sanofi-Synthélabo.

Meanwhile, LOréals research-and-development facilities continued their steady growth, with research staff reaching 1,000 by 1984. LOréals enormous commitment to research resulted in the success of products such as Lancômes Niosôme, launched in 1986, one of the few anti-aging creams found to be effective by independent dermatologists.

If this was the age of high-tech skin care, it was also the era of designer brands. In 1980, a new distribution company, Prestige et Collections, was created for Cacharel, whose perfume Loulou, launched in 1987, went on to become a best seller. In 1984, Nestlé took over Warner Cosmetics of the United States on behalf of LOréals U.S. agent Cosmair, thereby acquiring for the group the prestigious names of Ralph Lauren, Paloma Picasso, and Gloria Vanderbilt. At this stage, however, LOréal was interested only in the perfumes and cosmetics divisions of the designer brands. In 1983, the company sold its 49.9 percent stake in the couture house Courrèges to Itokin of Japan, although it retained 100 percent of Courrèges Parfums.

A further addition to the LOréal group was the Helena Rubenstein skin-care and cosmetics range. In 1983, LOréal began by taking major stakes in Helena Rubensteins Japanese and South American subsidiaries, the former integrated with Lancôme in the new Japanese affiliate, Parfums et Beauté, in 1984. In 1988, LOréal bought Helena Rubenstein Inc., a U.S. company that was in financial difficulties as a result of the sharp drop in sales following the founders death. It would not be an easy matter to bring the company back into profit. Bought in the same year, Laboratoires Goupil, a dental-care-products manufacturer whose toothpastes held over 90 percent of the French market, was also unprofitable, but it was felt that LOréals skillful marketing could remedy the situation. LOréals last acquisition of the 1980s was the skin-care specialist Laboratoires Roche Posay.

While making acquisitions, LOréal also took the opportunity to sell off unwanted components of the group. These included the personal hygiene and comfort products of Laboratoires Ruby dAnglas and Chiminter, which were felt to be too far outside the groups main area of interest and not in accord with LOréals policy of internationalization.

LOréal was keen to diversify into communications. In 1984, the company took a 10 percent stake in the French pay-TV company, Canal Plus, with the stake raised to 10.4 percent in 1986. In 1988, LOréal took a 75 percent stake in Paravision International, an organization charged with the creation, production, and distribution of audiovisual products for an international audience. The following year, LOréal entered by way of Paravision into a joint venture with the U.S. company Carolco Pictures Inc., to handle foreign television-distribution and programming rights.

New Leadership in 1988

In 1988, Lindsay Owen-Jones became the new chairman and chief executive officer of LOréal at the age of 42. Marc Ladreit de Lacharrière became director and executive vice-president while Charles Zviak moved on to the chairmanship of Synthelabo. Zviak died the following year, having been one of the few chemists to attain leadership of a major French company. The end of the decade was marked further by rumors of LOréals involvement in a proposed joint takeover bid for the French luxury-goods company Louis Vuitton Moët Hennessy, together with Vuittons head, Monsieur Racamier, and Paribas/Parfinance. Although the existence of such a plan was denied by LOréal, the company joined with Orcofi, a Vuitton-controlled holding company, to buy 95 percent of the perfume and couture house Lan vin.

LOréal explained that although Vuitton owned Dior and Givenchy, competitors in the perfume and cosmetics market, LOréal had no Vuitton shares and no intention of attacking the company. On the contrary, the Vuitton alliance would give LOréal an entrée into the field of luxury goods. Although Lan vin lost money since LOréals acquisition, company officials remained optimistic, declaring that the experience gained from running a luxury boutique was valuable in itself.

In 1991, LOréal found itself embroiled in a bitter dispute with Jean Frydman, a former director of Paravision. Frydmanwho held dual Israeli-French citizenshiphad filed suit against the company, charging it with fraudulent behavior and racial discrimination stemming from the 1989 sale of the Frydman familys 25 percent share of ParavisionLOréals film distribution divisionafter being pressured by François Dalle. Frydman alleged that LOréal violated a 1977 French law prohibiting companies from participating in an Arab boycott against Israel when the company forced his resignation and the sale of the familys stake at an unfair price because of his business ties to Israel. The ensuing investigation created a minor scandal in France by digging up unsavory facts about founder Eugène Schuellers anti-Semitic, fascist politics during World War II. Later that year, however, Frydman dropped the suit in exchange for a letter of apology from Dalle.

During the 1990s, the cosmetics industry experienced growth, but with increasing rivalry. While LOréals alliance with Nestlé protected it from corporate marauders, it continued to be vulnerable to competition in Western markets in the early 1990s from the likes of Japanese competitors Shiseido and Kaoalthough 90 percent of the turnover of both companies come from their home marketand from Unilever, following the latters takeover of Elizabeth Arden and Fabergé.

International Expansion: Late 1980s90s

In the years following his appointment as chairman and CEO, Owen-Jones set about making LOréal a genuinely international company. He began cultivating an integrated international team of top managers, enabling the company to quickly respond to and capitalize on consumer trends worldwide. Owens-Jones also supported greater cooperation between LOréals numerous brand names and divisions. After Lancôme Niosôme was developed in 1986, LOréal then translated the new technology into a mass market LOréal skin-care line sold under the name Plentitude. Plentitude was launched in Europe and Australia in the late 1980s, and within two years of its U.S. launch in 1989, it had captured a 10 percent share of the market.

It was precisely this kind of synergy between subsidiaries, analysts say, that led to LOréals 15 percent overall profit growth in the 1980s. In the boom years of the 1980s, high-end lines such as Lancôme and Helena Rubenstein performed extremely well. When the prestige market slumped in the early 1990s, such mass market lines as LOréal were poised to pick up the slack.

LOréal also eyed the U.S. market, which represented one-third of the world market, as one with opportunities for further profit growth. At the time, despite having full control of strategy, management, and marketing in this region, LOréal reaped only 5.5 percent from the profits of its sole U.S. agent Cosmair Inc. One advantage of this system for LOréal was protection from the weakness of the U.S. dollar and from high marketing costsCosmair handled a sales volume of over $1 billion that provided the company with the flexibility to launch new products which could then be transferred to LOréal affiliates worldwide. Other markets targeted for expansion during the early 1990s included Japan.

LOréal was also one of the first western companies to set up shop in the former Soviet Union, forming Soreal, a joint-venture with the Russian chemical company Mosbytchim. LOréal invested $50 million in the venture to produce approximately 40 million units of deodorant, perfume, shampoos, and hair sprays annually. Soreal products were sold in 1992 at a mere 100 outlets in Moscow and at an additional ten throughout Russia. Hard currency was difficult to come by as banks either collapsed or were unaccustomed to dealing with Western businesses. In order to obtain the equipment necessary to upgrade production, Soreal created Maroussia, a womens fragrance that was imported to Western Europe in exchange for machinery and materials.

LOréals structure during this time remained unchanged, with the group consisting of a federation of competitive companies, including 147 production and distribution facilities worldwide, divided into five divisions. Only research and development facilities and overall management control were centralized. There was speculation as to the fate of LOréal when Bettencourt, in her mid-60s in 1990, relinquishes her corporate involvement. The French government took a strong interest in the issue. French government agreements restricted foreigners from taking over French companies before 1994. However, by 2001 Bettencourt still controlled her interest in the firm: should she decide to sell, Nestlé would have first option to purchase, and Bettencourt remained tight-lipped about her future plans.

As consumers became more environmentally aware, LOréal fell under increasing pressure to conform to new standards of product safety. The company was forced to phase out the use of chlorofluorocarbons which are said to be harmful to the ozone layer. LOréal also came under attack from the animal-rights lobby, which accused the company of subjecting laboratory animals to inhumane tests, although LOréal claimed that animal testing of new products was down to 5 percent from 50 percent in 1985. By 1989, the firm stopped animal testing altogether.

As LOréal entered the mid-1990s, the company found itself engaged in a battle with rivals Proctor & Gamble and Unilever for worldwide domination of the mass cosmetic and fragrance markets. LOréal seemed determined to remain the leader, hiking its advertising budget by as much as 50 percent for some products, and creating a whole new image for most of its color cosmetics. The company was also reaching out to customers by repackaging its merchandise and making display cases more accessible and user-friendly.

LOréal also made several strategic moves to solidify its market position. In 1994, it purchased control of Cosmair from Nestlé and Bettencourt. The following year, it acquired the Maybelline brand for $600 million. The company also purchased two drug companies that year including Germany-based Lichtenstein Pharmazeutica and Irex, based in France.

As part of its continued focus on the U.S. market, the firm formed LOréal Retail division in 1996, merging its U.S. hair care and cosmetics businesses under one umbrella. It continued to introduce new products in this market, including the Gamier hair care brand. By that time, its Cosmair subsidiary accounted for 23 percent of LOréals entire cosmetics business.

Strategic Acquisitions: Late 1990s and Beyond

In 1998, the company launched a global advertising campaign with the tagline, Because Im worth it. Under the leadership of Owen-Jones, LOréal began making a series of acquisitions that would bring it closer to its goal of becoming one of the worlds top four brands. It also renewed its focus on its emerging markets including Asia and Eastern Europe. In China, Maybelline was sold in 40 cities and the company hoped to up that number to 80. Owen-Jones stated in a 1998 Womens Wear Daily article, Its the beginning of the Chinese snowball. There have been three million Maybelline lipsticks sold. Our aim is to make sure every Chinese woman has a lipstick in her hand instead of the Little Red Book. Latin America also became a key market focus, especially after an economic crisis shook the Asian region in the latter half of the 1990s.

In 1998, Cosmair acquired Soft Sheen Products Inc., a leading ethnic hair care firm. The ethnic market was now considered to be among the top growth opportunities in the cosmetics industry. The following year, Elf Aquitaine and LOréal merged their pharmaceutical subsidiaries to create Sanofi-Synthélabo, creating the second-largest pharmaceutical company in France. Long-known for its dedication to research and development, LOréal continued forging ahead on that front. The company signed a five-year partnership agreement with the United Nations Organization for Education, Science, and Culture (UNESCO) entitled For Women in Science. As part of the program, female researchers would be given grants to pursue scientific research. During 1999, sales continued to increaseup 12.1 percent over the previous year. Western Europe accounted for 56.1 percent of company sales, while North America accounted for 27.1 percent. That year, the company reported the strongest profit growth of the decade.

LOréal entered the new millennium with continued success. It purchased Carson Inc., the leading ethnic cosmetics firm, cementing LOréals position in that market. It also acquired Ylang Laboratories Ltd., an Argentine cosmetics firm, and the Scandinavian Respons brand from Colgate Palmolive Inc. Kiehls Since 1851 Inc. was also purchased along with Matrix Essentials Inc. In order to take advantage of its parent companys strong brand recognition, Cosmairs name was changed that year to LOréal USA.

The company had a record year in sales and profits during 2000, and LOréal remained the market leader in the cosmetics industry with a 16.8 market share. In Japan, sales increased by 46 percent and Maybelline became the leading mass-market cosmetics brand in the country. Along with its acquisitions, LOréal launched several new products, including Maybellines Water Shine lipstick and Full n Soft Mascara, Age Perfect Skincare by LOréal Paris, Garniers Fructis Style product line, and fragrances Ralph by Ralph Lauren and Miracle by Lancôme.

During 2001, the company continued to divest non-core, slow-growth businesses. LOréal announced plans to sell its interest in its Marie-Claire magazine holdings along with its Lanvin S.A. subsidiary. It also strengthened its position in the dermatological cosmetics market with the purchase of the Bio-Medics brand name from CosMedic Concepts Inc.

Attributing much of its prosperity to its global branding strategy, LOréal remained confident that its success would continue into the future. Blink an eye, and LOréal has just sold 85 products around the world, from Redken hair care and Ralph Lauren perfumes to Helena Rubinstein cosmetics and Vichy skin care, claimed a 1999 Business Week article. With its strong market position, LOréal seemed poised to continue its dominance in the cosmetics industry well into the future.

Principal Subsidiaries

Carson Holdings Ltd. (South Africa); Kiehls Since 1851 Inc. (United States); Matrix Essentials Inc. (United States); Lancôme Parfums et Beauté & Cie; Lancôme Institute et Cié; Helena Rubenstein Inc; Laboratoire Gamier Paris; LOréal UK Ltd.; LOréal USA; Maybelline Ltd. (Hong Kong); Parfums Cacharel et Cie; Parfums Guy Laroche; Parfums Ralph Lauren; Redkin Laboratories GmbH (Germany).

Principal Competitors

The Estée Lauder Companies; Proctor & Gamble Co.; Shiseido Company Ltd.

Further Reading

Benjamin, Patricia, Sitting Pretty, Business, January 1987.

Dang, Kim-Van, LOréals Integration: What a Difference a Year Makes, Womens Wear Daily, April 25, 1997, p. 8.

Deeny, Godfrey, LOréal Execs Probed by Magistrate for Joining Arab Boycott of Israel, Womens Wear Daily, May 15, 1991, p. 27.

Dorn, Pete, Lindsay Owen-Jones: A World Vision for LOréal, Womens Wear Daily, October 12, 1990, pp. 1011.

Echikson, William, LOréal: Aiming at High and Low Markets, Fortune, March 22, 1993, p. 89.

Fearnley, Helen, LOréalNot Just A Pretty Face, Financial Weekly, May 5, 1988.

Owen-Jones Satisfied With Remarkable Success, Cosmetics International, April 25, 1999, p. 5.

LOréal Announces Two Key Acquisitions in the U.S., Chemical Market Reporter, April 24, 2000, p. 16.

LOréal Drops Lanvin as Recent Acquisitions Prove Profitable, Cosmetics International, August 15, 2001, p. 5.

LOréal Goes For Ethnicity, Soap Perfumery & Cosmetics, March 2000, p. 7.

LOréal Keeps Going Strong and Helps Women in Science, Cosmetics International, October 25, 1999, p. 5.

LOréal Says Progress Is History in the Making, Cosmetics International, March 10, 2001, p. 6.

LOréal: The Beauty of Global Branding, Business Week, June 28, 1999.

LOréals Dark Roots, Time, July 1, 1991, p. 56.

Raper, Sarah, Ex-LOréal Head Settles Race Bias Case, Womens Wear Daily, December 23, 1991, p. 3.

, Taking Russia: Tough Times at the Factory, Womens Wear Daily, August 7, 1992, p. 4.

Rummell, Tara, Whats New At LOréal?, Global Cosmetic Industry, February 1999, p. 18.

Sauer, Pamela, A Makeover of Global Proportions, Chemical Market Reporter, December 3, 2001.

Tosh, Mark, LOréals 1990 Net Rises 15.2%; Sales Gain 11.7%, Womens Wear Daily April 17, 1991, p. 21.

Weil, Jennifer, and Janet Ozzard, LOréals New Focus on Emerging Markets, Womens Wear Daily, April 10, 1998, p. 11.

Jessica Griffin
updates: Maura Troester and Christina M. Stansell