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L'Oréal luxe
Nicolas Hieronimus

Nicolas HieronimusPresident Selective Divisions

L’Oréal Luxe posted a very good year in 2016, with growth at +6.9%(1) and market share gains on all continents. Western Europe performed well, while North America had an outstanding year and the New Markets delivered an excellent performance with double-digit growth in Russia, Japan, Southern Asia and China. Make-up became L’Oréal Luxe’s number 1 growth driver. We strengthened our brand portfolio with two strategic acquisitions: in make-up, IT Cosmetics, an American brand in the selective beauty segment, which recorded the strongest growth in the sector(2); and in fragrances, Atelier Cologne, a brand whose expertise in the niche perfume segment perfectly complements our collections.

Flagship brands all over the world

As the world number 1 luxury women’s brand(3), Lancôme moved into 2nd place in the American selective market(4). Urban Decay continued its global roll-out, with store openings in 11 new countries and the successful Vice Lipstick launch. Kiehl’s continued to grow. The market share of alternative brands(5) and their contribution to growth increased. In Asia, our designer brands Yves Saint Laurent and Giorgio Armani posted outstanding growth. Yves Saint Laurent had an exceptional year, with sales exceeding one billion euros. Our strength is our ability to develop and roll out a portfolio of complementary brands that appeals to all regions of the world and all types of consumers.

Reaching new consumers online

Today more than ever, luxury consumers focus on a new interactive space: their smartphones. To personalise our services, we strive to get to know them better and to enhance our direct relationship, whether through targeted marketing campaigns or our dedicated stores, particularly online. Lastly, we are committed to ensuring our brands are responsible, in line with the new generations’ expectations. Many of our products have a positive societal impact, either through green design, refillable packaging or even contributions to charities. The Shu Uemura eyeshadow palette, the Biosource range by Biotherm, or the Kiehl’s charities are good examples.
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(1) Like-for-like.
(2) Source: Aggregate skincare and make-up segments, NPD United States panel, market share value 2016.
(3) Source: Aggregate women’s skincare, make-up and women’s fragrances segment, internal aggregate of NPD France, United Kingdom, Spain, Italy, United States, IRI Germany, Asia Beauty Research (China, Japan, Hong Kong, Taiwan, South Korea, Thailand, Singapore), Generation Travel Retail World, Segmenta (Brazil, Argentina, Mexico, Uruguay, Peru, Chile) panels, market share value 2015.
(4) Source: Selective market, NPD United States panel, market share value 2015.
(5) Brands that symbolise new luxury, such as Kiehl’s and Urban Decay.