After creating the new entity L’Oreal Thailand ltd. the names SiamPar and Thailor were banned from being used as a symbolic measure.
Drugstores had to compete with foodstore chains through unique product or merchandizing innovations. Carrefour: Helped to revamp Carrefours beauty space to compete with Tesco. Tesco: Category management, Helped Tesco to better understand the emotional value of beauty products.
Thailand is the 2nd most represented nationality after the US regarding spokespeople.
L'Oreal Case Study in Thailand
Case Study in Thailand
• In 2012 the Thai beauty market was worth 105 billion baht.
• Currently L'Oréal is the second largest beauty company in Thailand and they
aim to be #1 within the next six years.
• Competitor SSUP group known for GNC and Oriental Princess is currently #1.
• Skincare represents 45% of the beauty market in which L'Oréal says they are
the market leader.
• L'Oréal is the world leader in research-and-development investment in the
beauty industry, with 721 million euros (Bt27.4 billion)
• L'Oréal had challenges after the Asian crisis in 1997 when they were
working together with the companies ‘’SiamPar’’ and ‘’Thailor’’
• Several issues needed to be tackled to restore profitability and their
• In the year 2000 a new entity was created: L'Oréal Thailand Ltd.
How did they do it?
Understanding the market.
Tailor made strategies for each of their retailers
Clearer understanding of the market, product positioning
and the right communications strategy.
The correct products
Whitening skin products made up 50% of the market which they didn’t
focus on enough. Increased SKUs for hair color products from 15 to 20
compared to 9 for L’Oreals main competitor Sunsilk. This increased shelf
space from 50 to 90%. Different brands were to be targeted at different
age groups: 15-35 and 35+
Communicating with customers.
Local brand ambassadors were perceived as boring and lacking in
confidence resulting in an inconsistent image. L’Oreal rethought their
social media mix to focus heavily on print media and point-of-sale.
• Laila Boonyasak
(White Perfect Laser)
• Ann Thongprasom
(Revitalift / L’Oreal Excellence)
• Araya Alberta Hargate
(Total Repair / Revitalift white / UV perfect /
• Mai Davika Hoorne
• Nadech Kugimiya
In Thailand fairer skin is
equated with higher class
Magazines are often full off
pale Korean and Japanese
The skin lightening industry
in Asia will reach almost
2bn in 2013
The definition of beauty has
been changed by cosmetic
industry. Many Thai women
fail to meet the beauty
standards set by the
producers and ad agencies.
: 15 - 40 years old
: Undergraduate and above
: University Student and working adults
: 12,000 THB – 35,000 THB
Quality products that are well known and functional .
Motivation & Needs:
Brighten skin color, fulfilling emotional need and
uplifting self esteem…higher status
Attitude & Personality:
Self-conscious and want confidence
What makes L'Oréal successful in Thailand?
Clear understanding of the market
Well known brand ambassadors for
Specific strategies for different retailers
World leader in R&D with 721 million
euros (Bt27.4 billion)
Focused on skin whitening products
Products are widely available
(occasionally promotions at 7-11 too)