Loreal 2012 Annual Report Download - page 19

THE
TRANSFORMATION
OF THE
BEAUTY MARKET
CONTINUES
The worldwide cosmetics market posted growth of
+4.6%(1), a lively increase which demonstrates its solidity.
The market is undergoing constant change, reflecting
the geographic shift towards countries with strong
growth potential, where rising urban middle classes
eager for innovation are fuelling an ongoing renewal
of cosmetics products and services.
NEW BEAUTY HORIZONS
In skincare, multi-action formulas—such as BB creams,
which are halfway between facial skincare and foun-
dation—have become a must. In make-up, feather-
light textures that deliver a “nude” effect are taking
centre stage, thanks to hybrid products which com-
bine cover with a skin perfector. Another new devel-
opment in this category is the appearance of new-
generation lip glosses which put an end to the
uncomfortable sticky sensation of traditional lipsticks.
Thanks to a filmogenic agent, they successfully pro-
vide long-lasting colour, shine and comfort. Another
category that is changing fast is instrumental cosmetics,
and especially the strategic segment of sonic machines
and technologies. Brushes of this type are complemen-
tary to skincare products and generate a new ritual
for cleansing that visibly transforms the skin.
All these innovations and technological breakthroughs
were made possible thanks to the fundamental role
played by Research and by the creativity and bold-
ness displayed by the brands as they offer products
that match new beauty expectations, while also set-
ting the trends. Never before have the brands been
so close to their consumers, who are constantly on
the look-out for hints and recommendations. Person-
alised advice and services fuel this new proximity,
which is omnipresent: on the Internet, via smartphones
and tablets and in sales outlets.
It is through innovation, service, remarkable quality and
great performance that L’Oréal, the worldwide market
leader, is continuing to win over, recruit and ensure
the loyalty of ever-growing numbers of consumers.
UNITED STATES
With growth of +4.6%(1) in 2012, the United States
confirmed its status as the most solid mature
market, for all categories and distribution
channels combined.
This momentum is set to continue, thanks to
the combined effect of the rise in population
and the positive impact of digital media
on the vitality of the cosmetics market.
LUXURY AND TRAVEL RETAIL
In 2012, the luxury channel remained the driving
force behind the cosmetics market, with growth of
+6.3%(1), boosted by the rapid growth of travel retail
at around +14%(1). The increase in passenger traffic,
the attractiveness of the counters, the quality of
service and of the customer experience in sales
outlets are contributing to this dynamic trend,
with Chinese consumers leading the way.
SKINCARE
Skincare once again asserted its position as
the flagship category of the global cosmetics market,
both in terms of weight—more than a third of the
market(1)—and growth. In 2012, this category posted
growth of +5.1%(1), with particularly good
performances in the New Markets as well as in
mature markets such as the United States and Japan.
MARKET
GROWTH LEVERS
IN 2012
(1) Source: L’Oréal provisional estimates of worldwide cosmetics market in net
manufacturer prices. Excluding soap, toothpaste, razors and blades. Excluding
currency effects.
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