Loreal 2011 Annual Report Download - page 14

12 REGISTRATION DOCUMENT − L’ORÉAL 2011
1Presentation oftheGroup
Research and innovation: excellence, tomeettheneeds of all markets
1.5. Research and innovation: excellence,
tomeettheneeds of all markets
1.5.1. Research, in the Group’s
genes
Over a century ago, a scientist called Eugène Schueller
founded L’Oréal by launching a major innovation: a
harmless hair dye. Research immediately became one of
the components of the Group’s DNA and very quickly one of
the keys to its success. By always keeping one step ahead in
this area, L’Oréal has integrated research into a Sustainable
Development process. The ingredients used and the work
carried out respect the consumers, the environment and
biodiversity.
Today, to engage in the conquest of a billion new consumers,
the Group has rethought its innovation model and increased
its investments. With a budget of 721million euros in2011, up
by 8.4% as compared to the previous year, L’Oréal’s research
teams innovate to meet beauty aspirations all over the world
in their infinite diversity.
1.5.2. One step ahead in active
principles
L’Oréal’s fundamental research department was set up in 1963.
Its conviction: knowledge of skin and hair enables L’Oréal’s
researchers to think up new concepts which lead to the
synthesis of new molecules. The Group subsequently multiplied
the number of patent filings (613 in2011) and developed a
large number of active principles, the main ones being at the
source of the Group’s flagship products.
This capacity to implement long-term research programmes
now enables L’Oréal to remain ahead of its competitors.
Among these major molecules, it is possible to cite Ionene
G, launched in1978 in hair colour with Majirel to ensure real
respect of the integrity of hair; Mexoryl SX, a sun filter launched
in1982 in the Vichy Capital Soleil range; Proxylane, which, for
the first time in2006, became part of the Lancôme Absolue BX
range to treat deep wrinkles; and more recently, LR2412, used
in Lancôme Visionnaire, a star product launched in2011, which
reduces wrinkles while offering a more even skin tone.
1.5.3. S etting up new
technological platforms:
a decisive competitive
advantage
L’Oréal’s research team makes breakthrough innovations for
all d ivisions, all brands, and all product categories. The Group
creates formulae with textures and uses which enhance the
efficacy of active principles. For example, in2009, L’Oréal
Professionnel launched the INOA hair colouring range with
the ODS (Oil Delivery System), which makes it possible to
dispense with ammonia in the oxidation colouring. The ODS
is now a technological platform rolled out in the hair products
businesses.
1.5.4. A permanent commitment
to predicting the
harmlessness and efficacy
of products
The harmlessness and efficacy of L’Oréal’s technological
innovations are essential. To meet these requirements, the
research team embarked in the 1980s on developing alternative
methods to animal testing for the evaluation of the safety of its
products.
Much progress has been made thanks to tissue engineering,
which made it possible to reconstruct the first human epidermis
in1983 and then the first complete skin (epidermis and dermis)
in1996. Thanks to these models, L’Oréal was able to put an end
to animal testing for finished products in1989,
i.e . 14years before
it was required by law in Europe. In three decades, the Group has
created genuine expertise in the field of reconstructed tissues.
Up until now, nine reconstructed skin and cornea models have
been developed.
These models are fabulous tools to predict the safety and efficacy
of products and make it possible to reduce the time-to-market.
Research and innovation budget
(€ millions, including 50% of Galderma
research expenses)
2009 609
2010 665
2011 721
Research employees
(including 50% of Galderma research
employees)
2009 3,313
2010 3,420
2011 3,676
Number of patents
(cosmetics and dermatological
research)
2009 674
2010 612
2011 613