The implementation strategy of L’Oreal group in India

Abstract

Shampoos, lipsticks, nail polishes, day creams, shower gels…thousands products existed today in cosmetic market and carry on developing themselves day after day. Makeup, natural fragrances and soaps already existed in the last centuries. But habit to take care of yourself and all hygiene developments came in the 20th century, in developed countries first. The first reason according to history is that people and society known lots of changes in their life style concerning hygiene. Medicine studies know lots of evolutions, as dermatology. People began to wash themselves more and more, until every day, and not just once a month! Medical studies help to the development of all the cosmetics products and now products are developed in function of skin types, hair types etc. Social changes are also reasons of the cosmetic market development. There were first medical evolutions, but it was followed by women rights liberation, the augmentation of men which use cosmetic products (development of products for them such as day creams, fragrances, shampoos against hair-loss, showers gel perfumed for them…). Liberation of the education plays also a rule in this development. Nowadays girls and boys use more cosmetic products than before: makeup, hair gel…Special brand are created for them. Society changes take also in account age issues. Age people want to keep the youngest appearance, so cosmetic brands developed more and more products for them, to answer the demand (like anti-wrinkle cream). Finally, fashion is one other reason of cosmetic development. People follow it and use different products for it: such as hair colorations, nail polished (colors change every seasons), put gel or not in hair, use slimming cream to be thinner. Nowadays, in developed countries at least, people consume because of the habit but also because of advertisements which always convince you to buy the new product. This is the rule of marketing which adapt communication and ads in function of consumers targeted (men, women, old, young people…). L’Oréal, such as other cosmetic brands, evolves in this context but to develop itself, it has to go abroad and establish implementation strategy. After Europe, North and South America, Africa, North East Asia…L’Oréal began its implementation in India in 1990. Before with partnerships, later with its proper subsidiaries. The first one was created in 1994. L’Oréal began with consumer products division, and then developed the professional products in 1997 and finally active cosmetics in 2002. India is a very different country that L’Oréal had to study before its implementation. It is different for its economic situation but also and most for its culture and life style. While it is a country in development, India will have to face and will know the same social changes (it still knows some of them).