Loreal 2011 Annual Report Download - page 8

6REGISTRATION DOCUMENT − L’ORÉAL 2011
1Presentation oftheGroup
Business activities and strategy
1.3.1.3. Research and Innovation: inventing
the future of beauty
L’Oréal places research and innovation at the centre of its
development model. With 19research and 16evaluation
centres on all continents, the Group has developed more than
130 molecules during the last 40years. 3,676researchers play
their part in developing new formulae and filed 613patents
in2011. L’Oréal is now entering the era of universalisation
and beauty for everyone. The exploration of new scientific
and technological territories is being enriched by this global
dimension: with its in-depth knowledge of skin and hair in all
latitudes, L’Oréal research creates cosmetics products adapted
to the world’s diversity.
1.3.1.4 The portfolio of cosmetics brands:
offering the best of beauty in each
distribution channel
With 27 international brands with diverse cultural backgrounds
present in all distribution channels, L’Oréal is able to meet the
aspirations of all consumers whatever their origins, beauty
habits or revenue levels. The L’Oréal teams design new products
in all areas of cosmetics: hair care, hair colour, skin care, make-
up and perfumes.
1.3.1.5. The internationalisation
ofdevelopment: attracting a billion
new consumers
Present in 130countries, the Group has shown its ability over
the first 100years of its existence to attract nearly 1billion
consumers, representing around 15% of the population of the
planet. With accelerating globalisation, L’Oréal’s mission is being
enlarged: based on its international positions and its power of
innovation, the Group’s ambition is to conquer a billion new
consumers over the next 10 to 15years.
1.3.1.6. A commitment to responsible,
sharedand sustainable growth
With a particularly robust balance sheet and a solid
financial situation, the Group can look forward to the future
with confidence. Supported by loyal shareholders, vigilant
governance and stable management, L’Oréal has always
targeted constant, sustainable growth. Based on a solid
business model, L’Oréal is also a company which strives to be
exemplary, exacting in limiting its footprint on the planet, and
increasingly creative in inventing new models of sustainable
consumption.
1.3.2. An organisation that serves
the Group’s development
1.3.2.1. L’OréalS.A.
L’Oréal Company acts as a holding company and has a role
of strategic, scientific and industrial coordination of the Group
on a global basis. The role of most of the subsidiaries involves
the marketing of the products produced by the Group’s plants.
L’Oréal Company wholly owns the capital of the vast majority of
its subsidiaries. In parallel, L’OréalS.A. which has its head office
in France, performs a sales activity that is specific to this market.
1.3.2.2. Branches and Divisions
The Cosmetics Branch, which represents most of the Group’s
activities (93% of its sales in2011) is made up of 4Operational
Divisions which each correspond to a specific marketing
channel:
♦the Professional Products Division markets products used
but also sold in hair salons. P rivileged partner of hairdressers
all around the world , it supports them in every facet of their
development and offers them high-level training. Its portfolio
of differentiated brands meets the needs of all types of salon.
Professional Products Division brands: L’Oréal Professionnel,
Redken, Kérastase and Matrix;
♦the Consumer Products Division offers the best in cosmetic
innovations at accessible prices in all mass-market retail
channels (hypermarkets, supermarkets, drugstores and
traditional stores) on every continent. Consumer Products
Division brands: L’Oréal Paris, Garnier, Maybelline, Softsheen
Carson and Essie;
♦ L’Oréal Luxury brings together a unique set of prestigious
brands. These brands are sold through selective distribution,
broken down between department stores, perfumeries, travel
retail outlets, but also its own stores and through e-commerce
websites. L’Oréal Luxury Division brands: Lancôme, Giorgio
Armani, Yves Saint Laurent, Biotherm, Kiehl’s, Ralph Lauren,
Shu Uemura, Cacharel, Helena Rubinstein, Diesel, Clarisonic
and Vikto r & Rolf ;
♦the Active Cosmetics Division distributes its products
worldwide in health products distribution channel,
primarily through pharmacies, drugstores, medispas and,
in some countries, dermatologists. Its unique portfolio of five
brands, which meets all the needs of consumers in terms
of health- beauty, and its privileged partnership with health
professionals have made the Division the world’s No.1 in
dermocosmetics. Active Cosmetics Division brands: Vichy,
La Roche Posay, SkinCeuticals, Innéov and Roger & Gallet.