- 来源｜ Cosmetic Business Online
- 作者｜Guo Fen
In the first quarter, benefiting from successful marketing campaigns in China New Year, Valentine’s Day and Women's Day, L’Oréal Out-performed the beauty market. It achieved double-digit growth in the Chinese mainland market, further consolidating its leading position in the Chinese market.
On April 19th L’Oréal released its financial report for the first quarter of 2022. L’Oréal performed strongly in the first quarter, achieving sales of 9.06 billion Euros (approximately RMB 62.545 billion), up 13.5% year over year, and L’Oréal reported an increase of 19.0%. Nicolas Hieronimus, CEO of L’Oréal Group, said that the group once again out-performed the beauty market and was full of confidence in continuing to surpass the market in 2022 and achieving further growth in sales and profits.All Divisions and zones achieved growth in the first quarter. Chinese mainland market achieved double digit growthL’Oréal Group’s first-quarter financial report showed that its four Divisions: L’Oréal Luxe, Consumer Products, Active Cosmetics, and Professional Products all achieved significant growth, with sales of 3.463 billion euros (about 23.977 billion yuan), 3.302 billion euros (about 22.862 billion yuan), 1.252 billion euros (about 8.668 billion yuan), 1.041 billion euros (about 7.208 billion yuan), respectively. The growth rate was 6.9%, 17.5%, 18.0% and 17.6%, respectively.
Five zones, including Europe, North America, North Asia, SAPMENA-SSA4 (South Asia Pacific, Middle East, North Africa and Sub-Saharan Africa), and Latin America all achieved growth, with sales of 2.854 billion euros (about 19.76 billion yuan), 2.203 billion euros (about 15.253 billion yuan), 2.801 billion euros (about 19.393 billion yuan), 681 million euros (about 4.715 billion yuan) and 519 million euros (about 3.593 billion yuan), respectively. They also achieved growth rates of 16.4%, 12.6%, 9.4%, 15.8% and 22.2%, respectively.
In addition, in the first quarter L’Oréal’s offline sales recovered significantly and e-commerce continued to grow, accounting for 25.8% of sales.
The European market is still L’Oréal’s largest market, accounting for about 31.5% of the total market; the North Asian market is second, accounting for about 30.91% of the total market, followed by the North American market, accounting for about 24.31% of the total market.
In the North Asian market, there were some negative impact caused by the pandemic, as strict lockdowns and travel restrictions were imposed in several Chinese cities in February and March, which put pressure on the market. However, L’Oréal continued to outperform the beauty market, with successful marketing activities in New Year, Valentine’s Day and Women’s Day, achieving double-digit growth in the Chinese mainland market. L’Oréal further consolidated its leading position in the Chinese market, and expanded its online and offline market share. Meanwhile, in Hainan L’Oréal outperformed the travel retail market (which is still a very active market).Lancôme continues to consolidate its leading position in China. The acquired new brands showing strength.From the perspective of the four Divisions, L’Oréal Luxe continued to maintain the highest contribution rate of sales in the first quarter, with a year over year increase of 17.5%. With sales of 3.463 billion euros (about 23.977 billion yuan) L’Oréal Luxe Division outperformed the global luxury beauty market.
Specifically, the strength and complementarity of the brand portfolio have enabled the L’Oréal Luxe division to gain a larger market share. Haute couture brands Yves Saint Laurent, Giorgio Armani, Prada and Valentino are growing significantly faster than their markets. Lancôme has also consolidated its leading position in Chinese mainland and its position in the top three in western markets.In terms of fragrance, L’Oréal Luxe has consolidated its leading position with the success of “blockbuster” high-end products for men and women, as well as the rapid growth of perfumes such as Maison Margiela Replica and Armani Privé. In terms of skincare products, in addition to the strong growth of the star product range of ultra-high-end brands such as Lancôme Absolue and Helena Rubinstein, the newly acquired brands Takami and Youth to the People (L’Oréal entered the game! “Vegan” beauty era is coming) also showed good future prospects. In terms of makeup, Shu Uemura and Urban Decay had strong growth.
The financial report shows that L’Oréal Luxe division achieved balanced growth in geographical zones, such as North America and Europe. At the end of March the Division’s market share of the North Asian market, which includes the Chinese market, reached a record high.The strong growth of La Roche-Posay and CeraVe contributed to the Active Cosmetics Division Growth 18% in Q1 According to the financial report, in the first quarter the Active Cosmetics Division ranked first in the growth rate with a growth rate of 18%, achieving sales of 1.252 billion euros (about 8.668 billion yuan). The growth speed exceeded the global skin cosmetics market.
The Active Cosmetics Division also achieved double-digit growth in all zones and had excellent performances in North America and SAPMENA-SSA. In addition, in terms of channels, online sales continued to grow, and physical offline sales rebounded sharply, driven by professional channels. On the brand side, La Roche-Posay grew strongly thanks to the continued success of the Cicaplast and Effaclar product lines and the launch of its groundbreaking innovation, UVmune Sunscreen. At the same time, CeraVe maintained excellent momentum in all zones thanks to last year’s solid performance. The solid performance of Dercos and sunscreens drove Vichy’s growth.
In addition, L’Oréal’s other two divisions - the Professional Products Division and the Consumer Products Division, also performed well. In the Professional Products Division Haircare remains the main growth driver. L’Oréal Professionnel’s Serie Expert, Redken’s Prescriptions and the launch of new Kérastase products have boosted growth.In the Consumer Products Division, despite supply difficulties, the Division started the year very positively in Europe and the United States. In North Asia it was affected by the slowdown of some e-commerce companies in mainland China.
All major brands in the Division continue to grow. L’Oréal Paris has a strong momentum in the field of hair care, and the Hyaluron Plump series has achieved outstanding success. In the field of makeup the True Match serum has also been a success. Thanks to the global success of Fast Bright and its Vitamin C Brightening Serum Garnier has shown significant growth in the skincare sector. Maybelline New York and NYX Professional Makeup have both reinvigorated the makeup category, with the launch of Colossal Curl Bounce Mascara and Bare With Me Concealer Serum being very successful.
