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L'Oreal S.A.: Rolling out the Global Diversity Strategy Case Study Analysis & Solution Transcript of Diversity SA The content of the training out and the new expectation afterward generated global positive and significant pushback strategy managers.
Case Study Abstract
To that end, the firm has dabbled in a number of customer-facing initiatives over the years, such as trialling interactive kiosks in New York back in or rolling out a virtual app in This was a savvy move. In the traditional beauty retail space, the most common way for customers to experiment with new make-up is to visit a bricks-and-mortar store and try samples.
This in turn should lead to an uptick in conversion to sales. We are at that magical moment when technologies have matured enough and consumer appetite for using them is growing everywhere.
One fascinating aspect of this partnership is that it keeps us innovating the beauty user experience. After having adapted our creatives and contents to a mobile-first world it will be very interesting to see how AR is going to change the creative playbook of our industry.
E-commerce is even more Darwinian in term of brands and only the brands that have strong top-of-mind presence with consumers will prevail. We have seen that, for example, in China, this year and last year, that in fact the big brands on e-commerce are becoming bigger brands.
Our market shares online are usually bigger, a lot stronger than offline, because of the process is very Darwinian. Instead users take a no-makeup selfie and then fill in an online questionnaire about their current skincare routine. Algorithms have been developed around common pain points, such as greasy skin, acne or crows feet.
The AI tech uses these to make recommendations on what products customers should be using. Others in the beauty industry are also upping their digital efforts. Yves Saint Laurent has achieved an exceptional year, with sales breaking the one billion euro mark, thanks to the strong dynamism of its make-up and success in fragrances, with Black Opium and the new women's perfume Mon Paris.
Urban Decay, today in 45 countries, is growing strongly, and is launching Vice Lipstick worldwide. The rise of Kiehl's in skincare is continuing.
North America has achieved a very good year. Western Europe performed very well, especially Spain and the United Kingdom. It is further increasing its share of the worldwide market. All the Geographic Zones have contributed to growth, with outstanding performances in North America and Latin America. La Roche-Posay is posting its seventh consecutive year of double-digit growth, with a strong contribution from its Effaclar , Cicaplast and Toleriane franchises.
SkinCeuticals is accelerating both in its home market and internationally, and its Triple Lipid Restore 2: The Consumer Products Division is strengthening its positions. The United Kingdom and Spain had a particularly dynamic year, while Germany and Italy delivered solid growth, outperforming their respective markets. The Consumer Products Division is significantly strengthening its leadership: In Brazil, the Active Cosmetics Division is outperforming the market, and the Consumer Products Division is taking advantage of the successful integration of Niely.
Russia, Poland and Ukraine are driving growth in this Zone. Activity in the Zone slowed down at the end of the year, particularly because of Saudi Arabia where the market decelerated.
On the other hand, Egypt and Pakistan are maintaining very strong momentum. Against this background, the Divisions together have gained market shares. The brand has also benefited from sustained growth in e-commerce. Skincare growth is continuing, with a strong contribution from the range of five new facial skincare masks.
The difficult context in Saudi Arabia and Hong Kong, however, is continuing to impact overall performance. Gross profit , at 18, million euros, came out at Research and Development expenses, at 3. Advertising and promotion expenses came out at Selling, general and administrative expenses , at Overall, operating profit , at 4, million euros, has grown by 3.
The profitability of the Professional Products Division , at The profitability of the Consumer Products Division came out at At Active Cosmetics Division , there was a further increase in profitability reaching Profitability in Western Europe improved by 30 basis points to In North America , profitability strongly increased to And in the New Markets , profitability fell slightly to Income tax excluding non-recurring items amounted to 1, million euros. This represents a tax rate of Net profit excluding non-recurring items after non-controlling interests amounted to 3, million euros.
Non-recurring items after non-controlling interests amounted to million euros net of tax, which corresponds mostly to the Magic and Clarisonic impairment impact operated during the first half of , and to the French tax of 3. The working capital requirement increased very modestly by Investments amounted to 1, million euros, representing 5. The net cash is positive again and came out, at 31 December , at million euros. The balance sheet remains particularly solid with shareholders' equity amounting to
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