L’Oréal in the United States: a strong comeback

A year of remarkable growth

Benefiting from a rebalancing strategy towards more skin and hair care, more e-commerce and more effective and innovative advertising and promotion, L’Oréal USA gained market share in every Division. Leveraging strong positions in makeup while building a stronghold in skincare, L’Oréal USA is winning at brick-and-mortar stores while continuing to establish a healthy e-commerce business.

Consumers returned to brick-and-mortar stores once the pandemic shutdowns ended. Distributors increased partnerships—like those between Sephora and Kohl’s, and between Ulta Beauty and Target—and diversified their offerings, like Amazon, which has made a shift towards premium beauty. Omnichannel distribution, which blends on- and offline sales, made significant contributions to growth. Distribution channels overlapped and enhanced one another, increasing the number of touchpoints—all part of an effective omnichannel strategy largely driven by the acceleration of the digital transformation. Active Cosmetics brands, recommended by dermatologists, were particularly popular, because they met consumers’ new expectations in terms of the effectiveness, safety, and health benefits of their beauty products.

Innovation drives strong growth

L’Oréal makes innovation an integral part of its products. This scientific approach is what sets the Group apart. Thanks to its unique formula enriched with bamboo extracts and its patented Flex Tower brush, Lash Sensation Sky High mascara by Maybelline New York has won over thousands of consumers and gone viral, with over 657 million views on TikTok. The innovative mascara has also received 13 awards, including Glamour’s 2021 Beauty Award. The Professional Products Division, a pioneer in the haircare segment, also relies on scientific innovation, which it paired with its inclusive philosophy to create Redken’s Acidic Bonding Concentrate to revitalize all types of hair.

Innovating is also about renewing our brands’ ability to meet consumer expectations. Particularly in the fragrance segment, where the emotions kindled by the product and its environment are key. There are three main areas for innovation: the point-of-sale experience remains crucial, because it provides an opportunity for direct contact with the product via try-ons and interaction with beauty advisors; sample distribution has become even more important with the rise in online sales in this highly sensory category; and last but not least, TikTok has become a crucial channel for consumers looking to learn about new fragrances from influencers who share their reviews with followers, inspiring them to try the products themselves. 

Beauty Tech and the digital transformation foster connection with consumers

L’Oréal participated in the 2021 Consumer Electronics Show in Las Vegas—the world’s premier consumer technology event—and presented a major innovation: L’Oréal Water Saver, developed in partnership with green startup Gjosa. The unique showerhead can reduce water use by up to 65% thanks to technology that decreases the size of water droplets while increasing their speed. Haircare products developed by Kérastase and L'Oréal Professionnel can be applied via a capsule inserted directly into the showerhead, completely reinventing the hair washing and rinsing process, while reducing water use. The system, which combines science and technology, benefits both consumers and the planet and has been ranked among the 100 Best Inventions of 2021 by Time magazine.

Digital innovation also gives brands an opportunity to connect with consumers. TikTok has become the new creative space for product launches like Sky High mascara by Maybelline New York. Brands like CeraVe have also used it to boost their reputation. And e-commerce has continued to grow, even as brick-and-mortar stores have reopened. Brands are constantly optimizing their approach to reaching online audiences via special offers, augmented experiences, gaming and entertainment, “diagnoses” and virtual try-ons on their websites.  

Building new ways of working and promoting inclusion

At L'Oréal, a benchmark employer in the United States, sustainable growth is inextricably tied to the Group’s social model. L’Oréal is reinventing its workplaces to optimize the new hybrid working model, which combines remote working with time on site. The new L’Oréal USA second headquarters in Los Angeles, announced in 2021, will bring the California brands together under the same roof in 2022 and will be designed to facilitate the hybrid model, while promoting employee health and well-being via an array of dedicated features. To support employees as they returned to the office after long periods of working exclusively from home, L’Oréal rolled out two programs: Reconnection, which aimed to help employees adopt new practices, tools and workplace relationships, while seeing the transition period as a time to share and renew ties with their teams; and Safe Together, which promoted peace of mind among those returning to the office by implementing precautions recommended by the WHO to reduce the spread of the virus.

Diversity and inclusion are also priorities at L’Oréal USA, which was the first company in the world to receive the new EDGEplus certification for Intersectional Gender Equality. As part of the certification process, L’Oréal developed an in-house system to monitor pay equity among employees worldwide using EDGE methodology. The results proved that L’Oréal USA has surpassed the EDGE certification requirements for gender equity with regard to measurable criteria such as performance.

L’Oréal USA achieves carbon neutrality

In 2021, L’Oréal reached a major milestone in the fight against climate change: L’Oréal USA achieved carbon neutrality at its 25 sites in 12 states. Administrative, Manufacturing and Research & Innovation sites all rolled out measures to reduce energy use and increase reliance on renewables. As a result, 70% of L’Oréal USA’s sites are involved in local renewable energy projects. Since 2005, the Group has installed 50,000 solar panels across the country. To heat water and workspaces, L’Oréal relies on renewable natural gas (RNG) produced at waste landfills in Texas and New York that capture and convert methane from the natural decomposition of organic material. These projects turn waste into RNG—a renewable energy resource that replaces fossil fuels. The subsidiary achieved carbon neutrality four years ahead of the date set out by L’Oréal for the Future.