In July 2016, L'oreal announced plans to purchase IT cosmetics, which will add more than 300 skin care and makeup products to its portfolio and is the largest acquisition for the company in eight years (Turner & Hoi-Nga Wong, 2016). L'oreal has faced a slow market in parts of Asia and Latin America and L'oreal is looking to this acquisition to increase growth and counteract the slow market (Turner & Hoi-Nga Wong, 2016). The overall revenue growth for the company is -6.29% from 2015 and its earnings growth has decreased from 2015 41.84% (see Figure 1).
Figure 1: http://money.cnn.com/quote/quote.html?symb=LRLCF
L'oreal markets its products across upper, mid and low tiers of the pricing spectrum which hits every market of consumers (Passport, 2016).
L’Oreal Groupe has a brand share of 3.0 in the world as of 2015, which means consumers are buying the products in high quantities compared to other brands (Passport, 2016). In 2016, the brand value of L'oreal was estimated at $23, 524 billion (statista.com). The estimated annual growth of L'oreal between 2013 - 2016 was below average at 4.3% although sales in 2015 were reported at €25, 257 billion which was only an increase of €2, 725 billion from 2015 which is only a 1.12% increase (statista.com). L'oreal reports the highest research and