L Oréal SuccessStory
L'Oreal is a cosmetic and beauty company located in Paris. The company manufactures cosmetic products like hair colors, skin care products, sun protection, make-up, shampoos and other hair care products, perfumes and others.
L’Oreal produces cosmetics in largest quantity in the world. The company has also registered the highest cadre nanotechnology patent in the United States, along with being actively involved in dermatology, tissue engineering and pharmaceuticals.
The company started with a new development of a hair dye in 1909 by a young chemist Eugene Schueller that developed into a multinational company, having made assets worth over €28.219 billion by the end of 2013. L’Oreal currently manufactures 500 brands and thousands of individual products in all sectors of beauty and fragrances.
At the 2012, the breakdown of share ownership was mentioned as: 30.5% by the Bettencourt family, 29.3% by Nestlé, 24.5% by International institutional investors, 8.3% by French institutional investors, 5% by individual shareholders, 1.7% treasury stock and 0.7% by employees.
L'Oreal has six worldwide research and development centers in France, U.S, Japan, China and India and another soon to be established facility at New Jersey. Besides the involvement in cosmetics and pharmaceutical activities, L'Oreal also has shares in the film company Paravision.
Later On 17 March 2006, L'Oreal purchased the cosmetic company The Body Shop for £562 million, followed by the purchase of 3 Suisse's in March 2008.? L’Oreal is the world’s number three and Europe’s number one pharmaceutical company. Moreover, it also has a joint venture with the Laboratories Inneov, a nutritional cosmetic joint venture with Nestle.
To spare animals from testing tragedies, engineers at L’Oreal France reconstructed a skin model known as Episkin in which human skin cells left over from breast surgery are developed under in-vitro laboratory conditions to form sheets of reconstructed skin. Advantages of this as compared to animal testing is that it is more relevant and systematic to human skin, as the tests are done using human skin itself.
L’Oreal‘s has always been very concerned about corporate social responsibility and has conducted many activities related to that. One of which is L’Oreal-UNESCO Awards for women in Science, which focuses to recognize women researchers and their contribution in scientific progress. It grants 1,00,000 USD to each laureate.
Charity surrounding ‘Look Good… Feel better’ project has penetrated the women’s battle against cancer some 16 years ago which was initiated by L’Oreal. In 2012 as another part of corporate social responsibility, the company announced a -37.1% reduction in CO2 emissions, a 24% reduction in water consumption and -22% reduction in transportable waste, which was credited by Climate Counts for its practices and achievements in environmental sectors. The current slogan of L’Oreal, ‘Because You’re worth it’ has created a huge impact on its consumers by boosting the consumers’ sense of self-worth and self respect. The shift from “Because I’m worth it” to “Because you’re worth it” to again “Because we’re worth it” was a huge success in brand awareness strategy. So the organization has not merely progressed economically but also has elevated consumers pride with a positive message.