SWOT Analysis of L’Oreal, Competitors and USP

L’Oreal SWOT Analysis

by Shamsul
L’Oreal SWOT Analysis
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SWOT Analysis of L’Oreal, Competitors and USP

L’Oreal is a big name in the beauty industry. SWOT analysis of L’Oreal presents its strengths, weaknesses, opportunities, and threats. The brand has benchmarked its business successfully and thus it is a leading name in the relative market. They have gained huge popularity in a short span of time and it is all because of the strong product portfolio, marketing & advertising strategy, and business performance. Hence, L’Oreal is one of the biggest names in the FMCG sector. Today, we will talk about the internal and external factors of L’Oreal, its competitors, and UPS.

Parent Company: L’Oreal

Native Name: L’Oréal S.A. (French pronunciation: ​[lɔʁeal])

Established: July 30, 1909, Paris, France

Founder: Eugène Schueller

Head office: Clichy, France

CEO: Nicolas Hieronimus (May 1, 2021–)

Area Served: Worldwide (over 150 countries)

Industry: FMCG (Leading the world in beauty and pioneering the world of beauty tech)

Category: Cosmetics and Personal Care

Slogan – ‘’Because you’re worth it’’

Products: Makeup, Skin Care, Men & Hair Products

Number of Employees (2020): 86K

Total assets: (2019) – €43.81 billion  

Revenue: (2019)  – €29.87 billion

Net Income: (2019) – €3.75 billion

Subsidiaries: 36 international brands include Kiehl’s, Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Ralph Lauren, Clarisonic, Maybelline New York, Essie, Kérastase, IT Cosmetics, Prada Beauty, Biotherm, Shu Uemura, Viktor&Rolf, Maison Martin Margiela, Urban Decay, Redken, Vichy, La Roche-Posay, Diesel, Garnier, L’Oréal Paris, and more.

Strengths of L’Oreal | SWOT analysis of L’Oreal

  • The R&D department of L’Oreal is really strong. Specifically, they are continuously offering innovation and useful research to make the company better. This thing shows that the company provides the best personal care and cosmetic products to their users.
  • When it comes to growing cosmetics companies, L’Oreal is a leading name despite all the stiff competition.
  • Its customer-centric advertising strategy is the main reason of its strength.
  • With more than 80,000 employees, L’Oreal has a strong workforce globally.
  • From the complete range of hair care, skincare, makeup, and perfumes, L’Oreal contributes to the pharmaceutical and dermatological sector.
  • It has 50 manufacturing plants in different world locations and is actively present in more than 130 countries.

Weaknesses of L’Oreal | SWOT analysis of L’Oreal

  • The company has a weak hold on its segments and subdivisions due to its de-centralized organizational structure. It is one of the major weaknesses of L’Oreal, and it can create problems in the future.
  • The cosmetic industry is very deep due to the availability of many well-established brands. So, L’Oreal is facing tough competition from others.

Opportunities of L’Oreal | SWOT analysis of L’Oreal

  • L’Oreal only targets upper-middle-class people, but they have a chance to target every segment of consumers to gain a competitive edge over competitors. They can expand their reach to other countries to increase their footprint.
  • The company can increase its market share by introducing some innovation in its product portfolio.

Threats of L’Oréal | SWOT analysis of L’Oreal

  • The competition in the cosmetic industry is continuously increasing thus it is an alarming thing for L’Oréal.
  • Economic downturn, fluctuating dollar prices, disorder in supply and demand can lead to many problems.
  • Some of the products of L’Oreal are irrelevant that can upset the customers. So, customers target other brands that offer basic and relevant cosmetic and beauty products. So, it can be a significant threat for the company.

Competitors of L’Oreal:

The personal care and cosmetic sector are really dense due to the presence of several local and international brands. Finally, here are some biggest competitors of L’Oreal.

  • Revlon.
  • Lakme.
  • Avon.
  • Chanel.
  • Christian Dior.
  • Unilever.
  • Lancome.
  • Procter & Gamble.
  • Maybelline.
  • Olay.

Indeed, It is difficult to easily understand the operation and business strategy of L’Oréal. Whether you are a student or researcher, you can read this SWOT analysis of L’Oreal to increase your knowledge and level of understanding about business and other marketing strategies.

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