L'Oréal
Encyclopedia
The L'Oréal Group is the world's largest cosmetics
and beauty
company. With its registered office in Paris
and head office in the Paris suburb of Clichy, Hauts-de-Seine
, France
, it has developed activities in the field of cosmetics. Concentrating on hair colour
, skin
care, sun protection
, make-up, perfume
s and hair
care, the company is active in the dermatological
and pharmaceutical fields and is the top nanotechnology
patent-holder in the United States
.
L'Oréal is a listed company, but the founder's daughter Liliane Bettencourt
and the Swiss food company Nestlé
each control over a quarter of the shares and voting rights.
, a young French
chemist
, developed a hair dye formula called Auréale. Schueller formulated and manufactured his own products, which he then sold to Paris
ian hairdressers.
On July 30, 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France" literally "French Society of Inoffensive Tinctures for Hair"), the original L’Oréal. The guiding principles of the company, which eventually became L’Oréal, were research and innovation in the field of beauty.
In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today.
L’Oréal got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. L’Oréal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail.
L’Oréal has five worldwide research and development
centers: two in France: Aulnay
and Chevilly
; one in the U.S.
: Clark
, New Jersey
; one in Japan
: Kawasaki
, Kanagawa Prefecture
; and in 2005, one was established in Shanghai
, China
. A future facility in the US will be in Berkeley Heights, New Jersey
.
From 1988 to 1989, L'Oréal controlled the film company Paravision, whose properties included the Filmation
and De Laurentiis
libraries. StudioCanal
acquired the Paravision properties in 1994.
L’Oréal purchased Synthélabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo
. Sanofi-Synthélabo merged with Aventis
in 2004 to become Sanofi-Aventis
.
On 17 March 2006, L'Oréal purchased cosmetics company The Body Shop
for £
652 million.
The company has recently faced discrimination lawsuits in France related to the hiring of spokesmodels and institutional racism
. In the UK, L'Oréal has faced widespread condemnation from OFCOM
regarding truth in their advertising and marketing campaigns concerning the product performance of one of their mascara brands.
A book by Monica Waitzfelder, published in French as L'Oréal a pris ma maison and in English as L'Oréal stole my house!, details how L'Oréal, a company claimed to be anti-Semitic by the author, took over the Waitzfelder home in the German city of Karlsruhe
(after the Nazis had engineered the removal of the family) to make it its German headquarters.
L'Oréal's famous advertising slogan
is "Because I'm worth it". In the mid 2000s, this was replaced by "Because you're worth it". In late 2009, the slogan was changed again to "Because we're worth it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to "we" was made to create stronger consumer involvement in L'Oréal philosophy and lifestyle and provide more consumer satisfaction with L'Oréal products. L'Oréal also owns a Hair and Body products line for kids called L'Oréal Kids, the slogan for which is "Because we're worth it too".
Protest group Naturewatch states that L'Oréal continues to test new ingredients on animals. The company states that no animal testing for finished products has taken place since 1989 and that L'Oreal has invested significantly in alternative methods for chemical safety testing, though they implicitly acknowledge that they continue to perform animal testing of ingredients.
Following L'Oréal's purchase of The Body Shop
, who continue to be against animal testing
, The Body Shop founder Dame Anita Roddick
was forced to defend herself against allegations of abandoning her principles over L'Oréal's track record on animal testing. Calls were made for shoppers to boycott The Body Shop.
L'Oreal has made quite a few statements on claims of animal testing . Since 1989 the have stopped all testing on animals. which also can be found at their Company website
In 1987, L'Oréal and 3 Suisses
founded Le Club des Créateurs de Beauté specializing in mail order sales of cosmetic products.
February 2011: L'Oreal will have the largest factory in the Jababeka Industrial Park, Cikarang
, Indonesia
with total investment of US$50 million and it will be ready in October 2011. The production will be absorbed 25 percent by domestic market and the rest will be exported. In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales.
, Françoise Bettencourt Meyers, Peter Brabeck-Letmathe
, Charles-Henri Filippi, Xavier Fontanet, Bernard Kasriel, Marc Lacharrière, Jean-Pierre Meyers, Lindsay Owen-Jones, Franck Riboud
, Annette Roux and Louis Schweitzer
.
plants throughout the world, which employ 14,000 people.
In 2007, L’Oréal was ranked 353 in the Fortune Global 500
. The company had earned $2,585 million on sales of $19,811 million. There were 60,850 employees.
in nutritional cosmetics between L’Oréal and Nestlé; they draw on L’Oréal's knowledge in the fields of nutrition
and food safety
. Galderma is another joint venture in dermatology between L'Oréal and Nestlé.
The L'Oréal-UNESCO Awards for Women in Science
was established to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress.
The awards are a result of a partnership between the French cosmetics company L'Oréal and the United Nations Educational, Scientific and Cultural Organization (UNESCO
) and carry a grant of $100,000 USD for each laureate. [1]
The same partnership awards the UNESCO-L'Oréal International Fellowships, providing up to $40,000 USD in funding over two years to fifteen young women scientists engaged in exemplary and promising research projects.
L'Oréal organizes every year the L'Oréal Brandstorm, an acknowledged business game for students in 43 countries. The game is related to marketing and has a first prize of $10,000, a second prize of $5,000 and a third prize of $2500.
ruled that former L'Oréal sales manager Elyse Yanowitz had adequately pleaded a cause of action for retaliatory termination under the California Fair Employment and Housing Act
, and remanded the case for trial. The case arose out of a 1997 incident in which Jack Wiswall, then the general manager for designer fragrances, allegedly told Yanowitz to fire a dark-skinned
sales associate despite the associate's good performance. When Yanowitz refused, Wiswall pointed to a "sexy" blonde-haired woman and said, "God damn it, get me one that looks like that." Wiswall retired as president of the luxury products division of L'Oréal USA at the end of 2006.
In May 2007, L'Oréal was one of several cosmetic manufacturers ordered by the Therapeutic Goods Administration
in Australia to withdraw advertising regarding the wrinkle removal capabilities of their products.
In July 2007, the Garnier division and an external employment agency were fined €30,000 for recruitment practices that intentionally excluded non-white women from promoting its shampoo, "Fructis Style". L'Oréal is reported as saying the decision was "incomprehensible", and would challenge the measure in court.
In July 2007, the British Advertising Standards Authority
attacked L'Oréal for a television advert on its “Telescopic” mascara
, featuring Penélope Cruz
, stating "it will make your eyelash
es 60% longer." In fact, it only made the lashes look 60% bigger, by separating and thickening at the roots and by thickening the tips of the lashes. They also failed to state that the model was wearing false eyelash
es.
In July 2011, the British Advertising Standards Authority took action against L'Oréal when they banned two airbrushed Lancôme
advertisement in the UK featuring actress Julia Roberts
and supermodel Christy Turlington
. The agency issued the ban after British politician Jo Swinson
argued that the two ads misrepresented reality and added to the self-image problem amongst females in the UK. L'Oréal acknowledged that the photos had been airbrushed but argued that the two cosmetic products could actually produce the results depicted in the ads and that the results of the products had been scientifically proven.
published by Trust Research Advisory in India. Garnier was ranked in the 61st position in the list of Most Trusted brands of India.
in Clichy, Hauts-de-Seine
, near Paris
. The building, constructed in the 1970s from brick and steel, replaced the former Monsavon factory, and employees moved into the facility in 1978. 1,400 employees work in the building. The building is often referred to as the "Beauty Factory" by the public. In 2005 Nils Klawitter of Der Spiegel
said "the building, with its brown glazed façade of windows, is every bit as ugly as its neighborhood." Klawitter added that the facility "gives the impression of a high-security zone" due to the CCTV cameras and security equipment. The world's largest hair salon is located inside the head office building. As of 2005, 90 hairdressers served 300 women, including retirees, students, and unemployed people, per day; the customers are used as test subjects for new hair colours.
L'Oréal USA has its headquarters in New York City
, its New Jersey headquarters is in Berkeley Heights.
Cosmetics
Cosmetics are substances used to enhance the appearance or odor of the human body. Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup, towelettes, permanent waves, colored contact lenses, hair colors, hair sprays and...
and beauty
Beauty
Beauty is a characteristic of a person, animal, place, object, or idea that provides a perceptual experience of pleasure, meaning, or satisfaction. Beauty is studied as part of aesthetics, sociology, social psychology, and culture...
company. With its registered office in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
and head office in the Paris suburb of Clichy, Hauts-de-Seine
Clichy, Hauts-de-Seine
-Administration:The canton covers a part of the commune; the other is in the northern part of Levallois-Perret-Twinnings: Heidenheim, Germany, since 1959 Sankt Pölten, Austria, since 1968 Santo Tirso, Portugal, since 1991 Rubí, Spain, since 2005 Southwark, United Kingdom, since 2005Clichy has also...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, it has developed activities in the field of cosmetics. Concentrating on hair colour
Hair coloring
Hair coloring is the practice of changing the color of hair. Common reasons are to cover gray hair, to change to a color regarded as more fashionable or desirable, and to restore the original hair color after it has been discolored by hairdressing processes or sun bleaching...
, skin
Skin
-Dermis:The dermis is the layer of skin beneath the epidermis that consists of connective tissue and cushions the body from stress and strain. The dermis is tightly connected to the epidermis by a basement membrane. It also harbors many Mechanoreceptors that provide the sense of touch and heat...
care, sun protection
Sunscreen
Sunblock is a lotion, spray, gel or other topical product that absorbs or reflects some of the sun's ultraviolet radiation on the skin exposed to sunlight and thus helps protect against sunburn...
, make-up, perfume
Perfume
Perfume is a mixture of fragrant essential oils and/or aroma compounds, fixatives, and solvents used to give the human body, animals, objects, and living spaces "a pleasant scent"...
s and hair
Hair
Hair is a filamentous biomaterial, that grows from follicles found in the dermis. Found exclusively in mammals, hair is one of the defining characteristics of the mammalian class....
care, the company is active in the dermatological
Dermatology
Dermatology is the branch of medicine dealing with the skin and its diseases, a unique specialty with both medical and surgical aspects. A dermatologist takes care of diseases, in the widest sense, and some cosmetic problems of the skin, scalp, hair, and nails....
and pharmaceutical fields and is the top nanotechnology
Nanotechnology
Nanotechnology is the study of manipulating matter on an atomic and molecular scale. Generally, nanotechnology deals with developing materials, devices, or other structures possessing at least one dimension sized from 1 to 100 nanometres...
patent-holder in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
L'Oréal is a listed company, but the founder's daughter Liliane Bettencourt
Liliane Bettencourt
Liliane Bettencourt is a French heiress, socialite, businesswoman and philanthropist. She is one of the principal shareholders of L'Oréal and, with a fortune estimated at US$23.5 billion, is one of the wealthiest people in the world.-Biography:...
and the Swiss food company Nestlé
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
each control over a quarter of the shares and voting rights.
History
In 1907, Eugène SchuellerEugène Schueller
Eugène Schueller was the founder of L'Oréal, the world's leading company in cosmetics and beauty.- Career with L'Oréal :...
, a young French
French people
The French are a nation that share a common French culture and speak the French language as a mother tongue. Historically, the French population are descended from peoples of Celtic, Latin and Germanic origin, and are today a mixture of several ethnic groups...
chemist
Chemist
A chemist is a scientist trained in the study of chemistry. Chemists study the composition of matter and its properties such as density and acidity. Chemists carefully describe the properties they study in terms of quantities, with detail on the level of molecules and their component atoms...
, developed a hair dye formula called Auréale. Schueller formulated and manufactured his own products, which he then sold to Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
ian hairdressers.
On July 30, 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France" literally "French Society of Inoffensive Tinctures for Hair"), the original L’Oréal. The guiding principles of the company, which eventually became L’Oréal, were research and innovation in the field of beauty.
In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today.
L’Oréal got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. L’Oréal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail.
L’Oréal has five worldwide research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
centers: two in France: Aulnay
Aulnay-sous-Bois
Aulnay-sous-Bois is a commune in the northeastern suburbs of Paris, France. It is located from the centre of Paris.In October and November 2005, it gained national and international attention as one of the focuses of the French suburb riots.-Name:...
and Chevilly
Chevilly-Larue
Chevilly-Larue is a commune in the southern suburbs of Paris, France. It is located from the center of Paris.-Name:Chevilly-Larue was originally called simply Chevilly...
; one in the U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
: Clark
Clark, New Jersey
Clark is a township in southern Union County, New Jersey, United States. As of the 2010 United States Census, the township population was 14,756.-History:...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
; one in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
: Kawasaki
Kawasaki, Kanagawa
is a city located in Kanagawa Prefecture, Japan, between Tokyo and Yokohama. It is the 9th most populated city in Japan and one of the main cities forming the Greater Tokyo Area and Keihin Industrial Area....
, Kanagawa Prefecture
Kanagawa Prefecture
is a prefecture located in the southern Kantō region of Japan. The capital is Yokohama. Kanagawa is part of the Greater Tokyo Area.-History:The prefecture has some archaeological sites going back to the Jōmon period...
; and in 2005, one was established in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. A future facility in the US will be in Berkeley Heights, New Jersey
Berkeley Heights, New Jersey
Berkeley Heights is a township in Union County, New Jersey, United States. As of the 2010 United States Census, the township population was 13,183....
.
From 1988 to 1989, L'Oréal controlled the film company Paravision, whose properties included the Filmation
Filmation
Filmation Associates was an American production company that produced animation and live action programming for television during the latter half of the 20th century. Located in Reseda, California, the animation studio was founded in 1963...
and De Laurentiis
De Laurentiis Entertainment Group
De Laurentiis Entertainment Group was a production company/distribution unit founded by producer Dino De Laurentiis.The company is notable for producing Manhunter, Blue Velvet, the horror films Near Dark and Evil Dead II, King Kong Lives , and Bill & Ted's Excellent Adventure, as well as...
libraries. StudioCanal
StudioCanal
StudioCanal is a French-based production and distribution company that owns the third-largest film library in the world...
acquired the Paravision properties in 1994.
L’Oréal purchased Synthélabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo
Sanofi-Synthélabo
Sanofi-Synthélabo was a Paris-based pharmaceutical company formed in 1999, when Sanofi merged with Synthélabo. Sanofi-Aventis was formed in 2004 when Sanofi-Synthélabo merged with Aventis.Sanofi was created in 1973....
. Sanofi-Synthélabo merged with Aventis
Aventis
Aventis was a pharmaceutical and lab assay testing company. It was formed in 1999 when Rhône-Poulenc S.A. merged with Hoechst AG. The merged company was based in Strasbourg, France. With its headquarters in Strasbourg, Aventis was the product of the first transnational merger to combine large...
in 2004 to become Sanofi-Aventis
Sanofi-Aventis
Sanofi S.A. is a multinational pharmaceutical company headquartered in Paris, France, the world's fourth-largest by prescription sales. Sanofi engages in the research and development, manufacturing and marketing of pharmaceutical products for sale principally in the prescription market, but the...
.
On 17 March 2006, L'Oréal purchased cosmetics company The Body Shop
The Body Shop
The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries, and is the second largest cosmetic franchise in the world, following O Boticario, a Brazilian company...
for £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
652 million.
The company has recently faced discrimination lawsuits in France related to the hiring of spokesmodels and institutional racism
Institutional racism
Institutional racism describes any kind of system of inequality based on race. It can occur in institutions such as public government bodies, private business corporations , and universities . The term was coined by Black Power activist Stokely Carmichael in the late 1960s...
. In the UK, L'Oréal has faced widespread condemnation from OFCOM
Ofcom
Ofcom is the government-approved regulatory authority for the broadcasting and telecommunications industries in the United Kingdom. Ofcom was initially established by the Office of Communications Act 2002. It received its full authority from the Communications Act 2003...
regarding truth in their advertising and marketing campaigns concerning the product performance of one of their mascara brands.
A book by Monica Waitzfelder, published in French as L'Oréal a pris ma maison and in English as L'Oréal stole my house!, details how L'Oréal, a company claimed to be anti-Semitic by the author, took over the Waitzfelder home in the German city of Karlsruhe
Karlsruhe
The City of Karlsruhe is a city in the southwest of Germany, in the state of Baden-Württemberg, located near the French-German border.Karlsruhe was founded in 1715 as Karlsruhe Palace, when Germany was a series of principalities and city states...
(after the Nazis had engineered the removal of the family) to make it its German headquarters.
L'Oréal's famous advertising slogan
Advertising slogan
Advertising slogans are short, often memorable phrases used in advertising campaigns. They are claimed to be the most effective means of drawing attention to one or more aspects of a product. A strapline is a British term used as a secondary sentence attached to a brand name...
is "Because I'm worth it". In the mid 2000s, this was replaced by "Because you're worth it". In late 2009, the slogan was changed again to "Because we're worth it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to "we" was made to create stronger consumer involvement in L'Oréal philosophy and lifestyle and provide more consumer satisfaction with L'Oréal products. L'Oréal also owns a Hair and Body products line for kids called L'Oréal Kids, the slogan for which is "Because we're worth it too".
Protest group Naturewatch states that L'Oréal continues to test new ingredients on animals. The company states that no animal testing for finished products has taken place since 1989 and that L'Oreal has invested significantly in alternative methods for chemical safety testing, though they implicitly acknowledge that they continue to perform animal testing of ingredients.
Following L'Oréal's purchase of The Body Shop
The Body Shop
The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries, and is the second largest cosmetic franchise in the world, following O Boticario, a Brazilian company...
, who continue to be against animal testing
Animal testing
Animal testing, also known as animal experimentation, animal research, and in vivo testing, is the use of non-human animals in experiments. Worldwide it is estimated that the number of vertebrate animals—from zebrafish to non-human primates—ranges from the tens of millions to more than 100 million...
, The Body Shop founder Dame Anita Roddick
Anita Roddick
Dame Anita Roddick, DBE was a British businesswoman, human rights activist and environmental campaigner, best known as the founder of The Body Shop, a cosmetics company producing and retailing beauty products that shaped ethical consumerism...
was forced to defend herself against allegations of abandoning her principles over L'Oréal's track record on animal testing. Calls were made for shoppers to boycott The Body Shop.
L'Oreal has made quite a few statements on claims of animal testing . Since 1989 the have stopped all testing on animals. which also can be found at their Company website
In 1987, L'Oréal and 3 Suisses
3 Suisses
3 Suisses is a French mail order company. Otto GmbH has owned a 51% stake in the company since 1981. In 1987, 3 Suisses and L'Oréal founded Le Club des Créateurs de Beauté specializing in mail order sales of cosmetic products....
founded Le Club des Créateurs de Beauté specializing in mail order sales of cosmetic products.
February 2011: L'Oreal will have the largest factory in the Jababeka Industrial Park, Cikarang
Cikarang
Cikarang is the capital of Bekasi Regency, West Java in Indonesia. Jababeka is the biggest industrial estate in Southeast Asia. Property projects have also been built in Cikarang, such as Lippo Cikarang, Cikarang Baru, and Kota Delta Mas. The last one is the office complex of Bekasi.-Cikarang Dry...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
with total investment of US$50 million and it will be ready in October 2011. The production will be absorbed 25 percent by domestic market and the rest will be exported. In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales.
Business
Board of directors
Current members of the board of directors of L’Oréal are: Jean-Paul Agon, Francisco Basco, Werner Bauer, Liliane BettencourtLiliane Bettencourt
Liliane Bettencourt is a French heiress, socialite, businesswoman and philanthropist. She is one of the principal shareholders of L'Oréal and, with a fortune estimated at US$23.5 billion, is one of the wealthiest people in the world.-Biography:...
, Françoise Bettencourt Meyers, Peter Brabeck-Letmathe
Peter Brabeck-Letmathe
Peter Brabeck-Letmathe is an Austrian businessman. He is the Chairman and former CEO of the Nestlé Group.-Early life:Brabeck-Letmathe was born in a family with its origins in Iserlohn-Letmathe in North West Germany....
, Charles-Henri Filippi, Xavier Fontanet, Bernard Kasriel, Marc Lacharrière, Jean-Pierre Meyers, Lindsay Owen-Jones, Franck Riboud
Franck Riboud
Franck Riboud born 7 December 1955 in Lyon, is the Chairman and Chief Executive Officer of Groupe Danone. He is the son of Antoine Riboud, the previous CEO, who transformed the former European glassmaker BSN Group into a leading player in the food industry....
, Annette Roux and Louis Schweitzer
Louis Schweitzer (CEO)
Louis Schweitzer was the previous Chairman of Renault, first taking that post on 27 May 1992 in succession to Raymond Lévy, and he was also CEO from 1992 to 2005. He is in addition Chairman of AstraZeneca where he was appointed as a Director 11 March 2004...
.
Management committee
The management committee includes:- Jean-Paul Agon, Chief Executive Officer
- Frederic Roze, Chief Executive Officer, L’Oréal USA
- Béatrice Dautresme, EVP of Corporate Communications
- Jean-François Grollier, EVP of Research and Development
- Christian Mulliez, EVPVice presidentA vice president is an officer in government or business who is below a president in rank. The name comes from the Latin vice meaning 'in place of'. In some countries, the vice president is called the deputy president...
of Finances - Jean-Jacques Lebel, PresidentPresidentA president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of Consumer Products - Nicolas Hieronimus, President of Professional Products
- Geoff Skingsley, EVP of Human Resources
- Marc Menesguen, President of Luxury Products
Stockholders
As at year end 2010:- Breakdown of share ownership: 30.9% by the BettencourtLiliane BettencourtLiliane Bettencourt is a French heiress, socialite, businesswoman and philanthropist. She is one of the principal shareholders of L'Oréal and, with a fortune estimated at US$23.5 billion, is one of the wealthiest people in the world.-Biography:...
family, 29.7% by Nestlé, 1.9% treasury shares, 0.7% company savings plan, and the remaining 36.8% is public.
Sales, profits, etc.
In 2003, L’Oréal announced its 19th consecutive year of double-digit growth. Its consolidated sales was €14.029 bn and net profit was €1.653 bn. 96.7% of sales derived from cosmetic activities and 2.5% from dermatological activities. L’Oréal has operations in over 130 countries, employing 50,500 people, 24% of which work in France. 3.3% of consolidated sales is invested in research and development, which accounts for 2,900 of its employees. In 2003, it applied for 515 patents. It operates 42 manufacturingManufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
plants throughout the world, which employ 14,000 people.
- Cosmetics sales by division breakdown: 54.8% from consumer products at €7.506 bn, 25.1% from luxury products at €3.441 bn, 13.9% from professional products at €1.9 bn, and 5.5% from active cosmetics at €0.749 bn.
- Cosmetic sales by geographic zone breakdown: 52.7% from Western EuropeWestern EuropeWestern Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...
at €7.221 bn, 27.6% from North AmericaNorth AmericaNorth America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
at €3.784 bn, 19.7% from rest of the world at €2.699 bn.
In 2007, L’Oréal was ranked 353 in the Fortune Global 500
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
. The company had earned $2,585 million on sales of $19,811 million. There were 60,850 employees.
Joint ventures and minority interests
L’Oréal holds 10.41% of the shares of Sanofi-Aventis, the world's number 3 and Europe's number 1 pharmaceutical company. The Laboratoires Innéov is a joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
in nutritional cosmetics between L’Oréal and Nestlé; they draw on L’Oréal's knowledge in the fields of nutrition
Nutrition
Nutrition is the provision, to cells and organisms, of the materials necessary to support life. Many common health problems can be prevented or alleviated with a healthy diet....
and food safety
Food safety
Food safety is a scientific discipline describing handling, preparation, and storage of food in ways that prevent foodborne illness. This includes a number of routines that should be followed to avoid potentially severe health hazards....
. Galderma is another joint venture in dermatology between L'Oréal and Nestlé.
Community involvement and awards
In 2008, L'Oréal was named Europe's top business employer by The European Student Barometer, a survey conducted by Trendence that covers 20 European countries and incorporates the responses of over 91,000 students.The L'Oréal-UNESCO Awards for Women in Science
L'Oréal-UNESCO Awards for Women in Science
The L'Oréal-UNESCO Awards for Women in Science aims to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress...
was established to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress.
The awards are a result of a partnership between the French cosmetics company L'Oréal and the United Nations Educational, Scientific and Cultural Organization (UNESCO
UNESCO
The United Nations Educational, Scientific and Cultural Organization is a specialized agency of the United Nations...
) and carry a grant of $100,000 USD for each laureate. [1]
The same partnership awards the UNESCO-L'Oréal International Fellowships, providing up to $40,000 USD in funding over two years to fifteen young women scientists engaged in exemplary and promising research projects.
L'Oréal organizes every year the L'Oréal Brandstorm, an acknowledged business game for students in 43 countries. The game is related to marketing and has a first prize of $10,000, a second prize of $5,000 and a third prize of $2500.
Claims of racial discrimination in advertising, and other litigation
On August 11, 2005, the Supreme Court of CaliforniaSupreme Court of California
The Supreme Court of California is the highest state court in California. It is headquartered in San Francisco and regularly holds sessions in Los Angeles and Sacramento. Its decisions are binding on all other California state courts.-Composition:...
ruled that former L'Oréal sales manager Elyse Yanowitz had adequately pleaded a cause of action for retaliatory termination under the California Fair Employment and Housing Act
California Fair Employment and Housing Act
The California Fair Employment and Housing Act , codified as Government Code §§12900 - 12996, is a powerful California statute used to fight sexual harassment and other forms of unlawful discrimination in employment and housing.-Scope:...
, and remanded the case for trial. The case arose out of a 1997 incident in which Jack Wiswall, then the general manager for designer fragrances, allegedly told Yanowitz to fire a dark-skinned
Person of color
Person of color is a term used, primarily in the United States, to describe all people who are not white. The term is meant to be inclusive among non-white groups, emphasizing common experiences of racism...
sales associate despite the associate's good performance. When Yanowitz refused, Wiswall pointed to a "sexy" blonde-haired woman and said, "God damn it, get me one that looks like that." Wiswall retired as president of the luxury products division of L'Oréal USA at the end of 2006.
In May 2007, L'Oréal was one of several cosmetic manufacturers ordered by the Therapeutic Goods Administration
Therapeutic Goods Administration
The Therapeutic Goods Administration is the regulatory body for therapeutic goods in Australia . It is a Division of the Australian Department of Health and Ageing established under the Therapeutic Goods Act 1989 ...
in Australia to withdraw advertising regarding the wrinkle removal capabilities of their products.
In July 2007, the Garnier division and an external employment agency were fined €30,000 for recruitment practices that intentionally excluded non-white women from promoting its shampoo, "Fructis Style". L'Oréal is reported as saying the decision was "incomprehensible", and would challenge the measure in court.
In July 2007, the British Advertising Standards Authority
Advertising Standards Authority (United Kingdom)
The Advertising Standards Authority is the self-regulatory organisation of the advertising industry in the United Kingdom. The ASA is a non-statutory organisation and so cannot interpret or enforce legislation. However, its code of advertising practice broadly reflects legislation in many instances...
attacked L'Oréal for a television advert on its “Telescopic” mascara
Mascara
Mascara is a cosmetic commonly used to enhance the eyes. It may darken, thicken, lengthen, and/or define the eyelashes. Normally in one of three forms—liquid, cake, or cream—the modern mascara product has various formulas; however, all contain the same basic components of pigments, oils, waxes, and...
, featuring Penélope Cruz
Penélope Cruz
Penélope Cruz Sánchez is a Spanish actress. Signed by an agent at age 15, she made her acting debut at 16 on television and her feature film debut the following year in Jamón, jamón , to critical acclaim...
, stating "it will make your eyelash
Eyelash
An eyelash or simply lash is one of the hairs that grow at the edge of the eyelid. Eyelashes protect the eye from debris and perform some of the same function as whiskers do on a cat or a mouse in the sense that they are sensitive to being touched, thus providing a warning that an object is near...
es 60% longer." In fact, it only made the lashes look 60% bigger, by separating and thickening at the roots and by thickening the tips of the lashes. They also failed to state that the model was wearing false eyelash
Eyelash extensions
Like hair extensions, eyelash extensions add length, thickness and fullness to natural eyelashes. Synthetic single fiber polyester thread-like materials are applied to individual eyelashes to create a fuller, longer look.- Materials :...
es.
In July 2011, the British Advertising Standards Authority took action against L'Oréal when they banned two airbrushed Lancôme
Lancôme
Lancôme Paris is a makeup brand. Owned by L'Oréal since 1964, Lancôme is part of the Luxury Products division, which offers skin care, fragrances, and makeup at higher-end prices....
advertisement in the UK featuring actress Julia Roberts
Julia Roberts
Julia Fiona Roberts is an American actress. She became a Hollywood star after headlining the romantic comedy Pretty Woman , which grossed $464 million worldwide...
and supermodel Christy Turlington
Christy Turlington
Christy Turlington Burns is an American model best known for representing Calvin Klein from 1987 to 2007. She has worked on dozens of modeling contracts with companies including Maybelline Cosmetics and Versace. Turlington starred in her fashion documentary Catwalk and Isaac Mizrahi's Unzipped...
. The agency issued the ban after British politician Jo Swinson
Jo Swinson
Jo Swinson is a Scottish Liberal Democrat politician and Member of Parliament for East Dunbartonshire constituency, a suburban and semi-rural area to the north of Glasgow in Scotland, and is the Deputy Leader of the Scottish Liberal Democrats...
argued that the two ads misrepresented reality and added to the self-image problem amongst females in the UK. L'Oréal acknowledged that the photos had been airbrushed but argued that the two cosmetic products could actually produce the results depicted in the ads and that the results of the products had been scientifically proven.
Brands
Brands are generally categorized by their targeted markets, such as the mass, professional, luxury, and active cosmetics markets. Garnier - L'Oreal's product, reached the top 100 brands of The Brand Trust ReportThe Brand Trust Report
The Brand Trust Report, India Study, 2011 is published by Trust Research Advisory . The book is a result of a syndicated primary research on Brand Trust that generated 10,00,000 data points and 16,000 unique brands from over 10,000 hours of fieldwork conducted in 9 cities TRA’s study partners in...
published by Trust Research Advisory in India. Garnier was ranked in the 61st position in the list of Most Trusted brands of India.
Head office
L'Oréal Group has its head office in the Centre Eugène SchuellerEugène Schueller
Eugène Schueller was the founder of L'Oréal, the world's leading company in cosmetics and beauty.- Career with L'Oréal :...
in Clichy, Hauts-de-Seine
Clichy, Hauts-de-Seine
-Administration:The canton covers a part of the commune; the other is in the northern part of Levallois-Perret-Twinnings: Heidenheim, Germany, since 1959 Sankt Pölten, Austria, since 1968 Santo Tirso, Portugal, since 1991 Rubí, Spain, since 2005 Southwark, United Kingdom, since 2005Clichy has also...
, near Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. The building, constructed in the 1970s from brick and steel, replaced the former Monsavon factory, and employees moved into the facility in 1978. 1,400 employees work in the building. The building is often referred to as the "Beauty Factory" by the public. In 2005 Nils Klawitter of Der Spiegel
Der Spiegel
Der Spiegel is a German weekly news magazine published in Hamburg. It is one of Europe's largest publications of its kind, with a weekly circulation of more than one million.-Overview:...
said "the building, with its brown glazed façade of windows, is every bit as ugly as its neighborhood." Klawitter added that the facility "gives the impression of a high-security zone" due to the CCTV cameras and security equipment. The world's largest hair salon is located inside the head office building. As of 2005, 90 hairdressers served 300 women, including retirees, students, and unemployed people, per day; the customers are used as test subjects for new hair colours.
L'Oréal USA has its headquarters in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, its New Jersey headquarters is in Berkeley Heights.
See also
- L'Oréal-UNESCO Awards for Women in ScienceL'Oréal-UNESCO Awards for Women in ScienceThe L'Oréal-UNESCO Awards for Women in Science aims to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress...