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Discover more about L'Oréal's Consumer Products Division in 2016: http://www.loreal-finance.com/eng/annual-report-2016/consumer-products
Explore the full 2016 L'Oréal Annual Report http://www.loreal-finance.com/eng/annual-report-2016
Interview with Alexis Perakis-Valat, President Consumer Products Division
- How would you sum up the year for the Consumer Products Division?
2016 has been a turning point for the Division because we delivered on our commitments to accelerate growth and clearly outperform the market.
Above all, the really great news is that both of our two strategic growth categories outperformed the market: make-up grew double digit, thanks to our one-of-a-kind brand portfolio. And Haircare is performing very well, with the success of Ultra Doux.
The second highlight is that we have now four major global brands - with L’Oréal Paris, Garnier, Maybelline, and NYX Professional Makeup - and all four of them are growing. What’s exciting there is that NYX Professional Makeup is the first significant extension to our line-up since we acquired Maybelline 20 years ago, and it is already proving incredibly successful in 40 countries.
What’s equally exciting is that we are deploying these brands across a worldwide multichannel environment, with e-commerce growing at more than 30%, but also branded retail, thanks to the successful opening of almost a 100 NYX Professional Makeup stores.
Last but not least, all the Regions are performing well. In North America, we had an outstanding sales performance: we grew much faster than the market, reaching our highest market share ever - and that in spite of being already a leader there. In Western Europe, after a flat year in 2015, we are back to growth reinforcing our leadership. And in the New Markets, the Division grew and gained market share.
- What are tomorrow’s major prospects?
I’d say we have four strategic levers to ensure sustainable growth going forward.
Firstly, we are accelerating the deployment of game-changing innovations. There are a number of elements that give us a clear competitive advantage compared to local brands and major players. In particular, we have:
• a global and multichannel footprint,
• unique research and innovation capabilities,
• and a century-long background in beauty culture and expertise.
These assets have helped us launch some major innovations last year, including Magic Retouch by L’Oréal Paris, and Micellar Water by Garnier, to name just two. And we will accelerate in 2017 starting with Colorista by L’Oreal Paris, a true haircolour revolution for Millennials: this is the NYX Professional Makeup of haircolour.
Secondly, we are strengthening our make-up power house: the category is booming everywhere in the world. We have a portfolio of 4 global brands, each of them with a very clear brand equity, and a very strong innovation programme.
Our third lever is our ability to develop core major ascending beauty trends. These are natural haircare, with Ultra Doux, the New Fructis by Garnier, Phytoclear and Botanicals, our new L’Oréal Paris brands. And the second ascending trend is natural skincare, that we will develop with Garnier.
Our fourth strategic lever is to maximize our digital clout: digital is a source of inspiration for innovation, mainly through social listening as we have done for Colorista.
But also digital allows us to master programmatic advertising. This is what we have already done with the very successful launch of Ultra Doux all around the world, with different contents and insights, for different consumer groups.
The digital revolution is also an opportunity to strengthen the bond between our brands and our consumers. We are creating engaging content that goes beyond traditional advertising. A good example of that is L’Oréal Paris partnering with the Paris Fashion Week and allowing millions of women around the world to follow the event as if they were there.
More than ever the Division is ready to lead the New Mass Beauty Market.