LOreal Consultancy Report

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In today's world beauty products are no longer a luxury but an essential part of the modern lifestyle. Internationally cosmetic manufactures are developing new products to try and stay competitive in a fast growing and very competitive market. This report is developed on a request from L'Oreal executive management to inform them on the current cosmetic industry direction, new innovations and possible new strategies for the organisation.


Following in part four the report will identify organizations and alliances, what impact they may have on the industry and on the competitive position of L'Oreal. Finally, I determine what strategic options are the most appreciate to this organization to ensure its success in the next five years.
The sales of cosmetics and toiletries is on the rise after it slowed down globally in 2004, the world market was valued at $253 billion in 2005. With a positive growth after sentimental recovery from SARS scares and the war in Iraq (GCI, 2006), with strong cosmetic sales in Latin America and Eastern Europe, peaking in Western Europe the largest market. According to indications there was a 4% growth in 2004, an according to the Global Cosmetic Industry Magazine the Euromonitor International forecast of a possible 20% can be obtained if current key trends are followed.
Dividing the world cosmetic market in two sections, the mature and the developing markets, it is possible to show where sales are peaking, and where there are still opportunity for expansion. ...
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