Welcome, Guest [Sign In]

June 2008 - Strategy Magazine
Tribute

Corporate values drive L'Oréal's inner beauty

by Pia Wilson
page 67

You've likely seen the glamorous, glitzy side of L'Oréal, one of the world's top beauty brands. But behind all the glitter is an entity that's at once an innovative scientist, a savvy marketer and a resourceful talent scout. Far away from the cosmetic counters, L'Oréal is walking the walk when it comes to its corporate values of diversity, innovation and individual talent.

Next year, the global beauty brand will mark its 100th anniversary, and in Canada, L'Oréal is now celebrating its 50th. So how did "The Safe Hair Dye Company of France" build its empire while staying true to its roots?

The company was started in 1907 by French chemist Eugène Schueller, and its pioneer product was a safe-to-use hair dye manufactured under the names Noir et Or, representing the range of dark and gold hair colours, and L'Aureale, from the Latin "aureola," meaning gold crown or halo, for its fragrances and hair colours. It was later changed to L'Oréal.

Today, L'Oréal is found in 130 countries worldwide, and last year it posted global revenues of $18 billion. The beauty behemoth's 32 brands can be found in department stores, pharmacies, mass merchandisers and grocery stores.

In 1958, L'Oréal products began being sold in Canada through Cosmair, a distribution channel for L'Oréal Paris. It wasn't until 1998 that Canada had its own L'Oréal operation. Today, L'Oréal Canada employs 1,200 people at its Montreal-based facility. In global sales, the Canadian subsidiary ranks seventh, with L'Oréal brands owning more than 20% of the beauty category here. In 2007, Canadian net sales amounted to $822.4 million - a far cry from figures racked up in 1968 ($1 million in net sales) and even in 1987 ($100 million).

"It was a huge evolution for us," recalls Montreal-based CMO Dominique De Celles, who started working for Cosmair in 1985, of the switch to the L'Oréal Canada brand name a decade ago. "We became part of a multinational corporation. The Women in Science, our recruitment strategy, our link to business schools, the culture of entrepreneurship - all of these values came to life after we became part of the L'Oréal group."

When it comes time for its brands to come to life, L'Oréal Canada taps its agency roster, which includes ZenithOptimedia, Marketel and Publicis, and invests significantly in the marketing of its brands. Each year, it launches 150-200 major initiatives and programs. The Canadian marketing team for each brand is tasked with adapting the global product portfolio to make it relevant to the Canadian market. Each of the company's go-to-market initiatives are 100% Canuck. Examples of these few but significant partnerships include L'Oréal Fashion Week, Project Runway Canada, Luminato, Garnier's partnership with Canadian songbird Chantal Kreviazuk and Redken's affiliation with OneXOne.

Much like its legions of hair-dyeing consumers, L'Oréal's corporate roots are meant to fade to the background. "In our culture, the brands come first," explains Sandrine Michard, VP of corporate communications at L'Oréal Canada. "We've always been more active in marketing each of our brands and their culture. That is very deep at L'Oréal."

Quick Search