(statista.com). L'oreal reports the highest research anddevelopment investment, 3% of its sales or €800 million annually (Passport, 2016). With this investment in research and development, it has helped the company identify key trends among consumers (Passport, 2016). Although, it may not be enough as dermocosmetics are gaining popularity and companies with pharmaceutical backgrounds, such as Pierre Fabre, have an advantage (Passport, 2016).
Loreal is known worldwide as a skincare and cosmetics market leader and Maybelline is its top color cosmetic brand and is part of the mass segment with $4.8 billion in revenue in 2015 (Passport, 2016). Twenty percent of the growth for Maybelline came from China from 2010-2015 (Passport, 2016). Over the same time period, sales doubled in markets such as India, Indonesia and Turkey with growth in the US market reported to be slower due to consumers switch to the more luxury or high end brands (Passport, 2016). Maybelline is looking to increase sales in emerging markets such as China, Brazil, India, Turkey, the Middle East and Africa, with the use of brand ambassadors such as Taiwanese model I-Hua Wu in Asia (Passport, 2016).
Distribution and Channels
L'Oreal S.A. is a France-based cosmetic group. The Cosmetics branch is divided into four parts: Consumer Products, Professional Products, Luxury Products and
Active Cosmetics. Consumer Products are marketed under L’Oreal Paris and Garnier, just to name a few. L'Oreal S.A. can trace its company history back to 1909, when a French chemist developed and marketed his hair dye to hairdressers throughout France. Maybelline is now part of the L’Oreal company as a subsidiary under Active Cosmetics.