‘I think I might die if I made it’ 'There were no singles'
Xavier filou. l'oreal
1. Insight Information in Category Management Co-operation Xavier FILOU General Manager of Corporate Trade Relations L’OREAL Copresident ECR France
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3. 2009 Key Figures World’s number 1 cosmetics group 23 international brands (1) 130 countries 67,500 employees 17.5 billion euros of sales in 2008 patents registered in 2008 674 (1) Brands with annual sales of more than 50 million euros.
4. Hair salons Mass market Selective Pharmacies Present in 4 key distribution channels A Pure Player in Beauty
5. Excluding soap, toothpaste and razors. Provisional estimates for 2008. Source: L’Oréal estimates +5.5% +3.0% (1993 – 2008* - Annual growth rate) 2008 1993 1994 1996 1997 1998 1999 2000 2001 2003 2002 1995 2004 2006 2005 2007 A resilient cosmetics market… Annual growth rate of + 4.5 % over the last 15 years
6. World’s number 1 cosmetics group L’Oréal Procter & Gamble * Unilever * Estée Lauder Avon Beiersdorf Shiseido * Johnson & Johnson * Kao Corp.* Chanel * 0 5 10 15 20 25 30 Sales in billion US dollars 25,81 19,8 15,55 7,84 7,6 7,03 6,49 5,8 5,56 4,43 * estimates WWD Beauty Biz Ranking Sept. 2009 2008 Sales « Beauty’s Top 100 » in US $
7. Constantly improving its worldwide positions L’Oréal market share* 2000–2008 Based on estimates of the worldwide cosmetics market updated in 2007 14.3% 15.2% 15.8%** 13.8% * Excluding soap, toothpaste and razors. Source: L’Oréal estimates. ** 2008 with YSL Beauté over a full year 2000 11.0% 11.7% 13.6% 12.4% 13.2% 2001 2002 2003 2004 2005 2006 2007 2008
8. A unique portfolio of strong and complementary brands MIZANI Luxury Products Active Cosmetics The Body Shop Consumer Products Professional Products
9. 1.2 billion X 2 2.5 billion Our ambition: double our consumer base
11. X 2 > 60 years < 25 years € 87.3 € 25.1 Average skin care expenses per consumer in France, by age Source: TNS Worldpanel France - 2008 Women over 60 years old spend twice as much on facial skincare as women under 25 years old
12. Men: the potential of the new generation Cosmetics’ usage, by age and by category European Health & Beauty Survey – Men - 2007 - IPSOS * H&B Survey - 2005 Cleansing Products users (%) Moisturizing day cream users (%) 20 – 29 years old 50-59 years old 15 % 23 % 17 % 30 % 20 – 29 years old 50-59 years old
13. Accessible innovation Opening up new categories Accelerating globalisation Reducing costs and streamlining organisational structures Strengthening business drivers Increasing our consumer base 5 strategic thrusts 1 2 3 4 5
25. 1. To select CATEGORIES that will be actor of the universe Make-up, Perfums, Hair colorant, Hair care, Shampoo, Styling, Hair accessories, Deodorants, Bath, shower, Soaps, Skin care, Body care, Sun protection, Female care, Oral Care, Foot care… 2. Bring together categories by FAMILY 3. Family repartition according to distribution areas Understanding and working the categories « Essential keys » factor of differenciation and profitability 02.2010 L’Oréal DPGP / Essential keys NEED FAMILY PLEASURE FAMILY
27. 5. Visibility of the whole universe 6. Fluidity and free movement among the departments 7. Clean & Lighting Understanding and working the categories « Essential keys » factor of differenciation and profitability 02.2010 L’Oréal DPGP / Essential keys
28. FLUIDITY OF CONSUMER FLOW PLEASURE NEED IMPORTANCE OF NEW LAUNCHES ORGANISATION OF THE CATEGORIES VISIBILITY Ideal practice 02.2010 L’Oréal DPGP / Essential keys
29. The deployment of category management by L’OREAL with retailers Asia – Latin America - Europe – East - West – France (Wal*Mart International) (Latin America, USA) (stores) (region) (formats –CRM) (small formats) (formats – future – new countries) (nobody is forgiven) (Droguery-Market)
36. The deployment of category management by L’OREAL with 3 ECR France partners
37. Flash on ECR The 4 areas of in 2010 Organisation of the new international maturity cards Focus on Consumer Connected Business Information Share our Supply Chain Prepare People
58. L’OREAL UK A good example of anglo-saxon experience
59. The UK Category Management team is structured by category and there is a dedicated team for Grocery Grocery Team Core Category Experts
60. Cat Man Key Tasks and Competencies Retailer Insights Insights on Retailer Performance in our Categories Deliver Category and Shopper Expertise
61. Cat Man Key Tasks and Competencies Retailer Insights Benchmark Retailers on Key Business Drivers Drive the Beauty Opportunity
62. Cat Man Key Tasks and Competencies Retailer Insights Insights gained through Relationship and Retailer Meetings Retailer’s Own Objectives for Category Reviews Retailers View on Brand Performance Retailers view on Commercial Teams and Overall Trading Relationship Retailers Timings for Category Reviews … .. Deliver Category and Shopper Expertise
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64. Cat Man Key Tasks and Competencies Sales Analysis Support Range Reviews
65. Cat Man Key Tasks and Competencies Space Analysis Support Range Reviews
66. Cat Man Key Tasks and Competencies Planogram Proposals Current Proposed Support Range Reviews
67. Cat Man Key Tasks and Competencies Follow-up Analysis Creating Category Growth following each Range Review… … with L’Oreal Paris & Garnier’s sales leading the trend Support Range Reviews
68. Cat Man Key Tasks and Competencies In-Store Environment Drive the Beauty Opportunity
69. Store Project Examples: Morrisons New Look H&B LARGE FORMAT (3,500 sq. ft) : 15 Stores Beauty Advice Centre Impactful visuals signpost entry to H&B; mixture of low and high fixtures encourages browsing; Headers and on- shelf education assist consumers navigate through the fixture
70. Store Project Examples: Morrisons New Look H&B SMALL FORMAT (2,600 sq. ft): 60 Stores Adaption & Roll-out to 3- Aisle Stores RESULTS: Morrisons is the fastest growing Retailer in the Beauty Categories
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72. Tesco Homeplus bespoke Skincare units (headers + Shelfstrips) Educational GE’s on Skincare Regime + Testers bespoke Colourants units (headers + Shelfstrips) Skincare Advise Tool Tesco Nottingham 2008
73. Shopper insights: Branding and education is key in skincare Source: L’Oreal Skincare U&A 2009, In-store Research 2010, Quantitative & Qualitative Research Insights February 2009 Engagement at fixture is also key – over 10 minutes browsing result in higher purchase basket shelf-strips can be used to help consumers understand the different franchises, Leading to consumers purchasing what is right for them Women find shopping the category confusing and overwhelming in both high-street and supermarkets 32% of skincare shoppers wanting more ‘consultant/advice available’ Over 70% of shoppers know what brand/product they want before entering the store
74. Opportunity: Facial skincare Tesco Extra Slough Morrisons Milton Keynes Asda Living Bradford Superdrug Westfield Boots Hammersmith
75. FAIRPRICE SINGAPORE TESCO HUNGARY CARREFOUR AUTEUIL GUARDIAN MALAYSIA KUALA LUMPUR CARREFOUR ARGENTINA FAIRPRICE SINGAPORE Opportunity: Facial skincare
76. Impactful visuals in ‘chilled’ section Generic fins to navigate through Herbs & Spices Large banners and on-shelf education Sainsbury’s using strong, clear signage throughout Food & Beverage
77. How can we replicate education in Skincare to maximise growth? Very little inspiration to encourage browsing -no clear signage or on-shelf education to assist consumers in finding the right brand/product to match their needs
78. JS Skincare Vision: Use of impactful visuals and lit shelving to create an inspirational environment; while branded fins help navigate the fixture… LOW FIXTURE: Bringing a high-street feel to the grocery environment to encourage browsing
79. … complemented with information panels and educational shelf strips across all key players to assist shoppers in making the right choice
80. … with information panels (and glorifiers ) centrally located at eye-level Interchangeable -to provide generic information as well as to shout about ‘New’
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82. « Christophe Robin, Expert Colorist for L’Oréal Paris gives you live all his expert tips and advice » 1. « Bring your phone close to the shelf and meet Christophe Robin, the colorist of the stars » 2. « Select the product of your choice and get Christophe Robin’s specific advice on it » 3. « You need more advice? An expert advisor calls you on the spot to guide you in your selection » Mobile Initiatives EVENT & IMAGE COMMUNICATION
83. Mobile Initiatives EVENT & IMAGE COMMUNICATION « L’Oréal Paris star secrets confidentially on your mobile » 1. « Bring your phone close to the shelf » 2. « Enter in a confidential relation with Laetitia Casta and discover her favorite lipstick color » 3. « Download a signed kiss from Laetitia Casta as wallpaper and send it over »
84. « Download for free «The World Is Mine» on your mobile for one Party Proof purchased!! » 1. « Bring your phone close to the shelf » 2. « Listen to an extract of Guetta’s last HIT» 3. « At the cashier, download for free the whole HIT on your mobile, and you’re ready to challenge your look! » Mobile Initiatives Promotion cross merchandising
85. « 1€ reduction on your Party Proof for the purchase of Guetta’s CD » 1. « Bring your phone close to the shelf » 2. « Discover how you can challenge your look with Party Proof» 3. « At the cashier, for the purchase of David Guetta’s CD, 1€ reduction on your Party Proof! » Mobile Initiatives Promotion cross merchandising
Editor's Notes
L’Oreal took the leadership of the cosmetics market more than 2 decades ago. The group has always been a pure player : one single business since its creation in 1909. Present in 4 key distribution channels, a big difference compared to the next competitors who are not present in all these circuits. An opportunity to answer all beauty needs
Over the last 15 years, the cosmetics market has grown on average by +4.5% a year excluding currency fluctuations. It is a market which has demonstrated both its ability to achieve sustainable growth and its capacity for resilience in unfavourable economic conditions. In a very short-term , there is a slow-down, but not a drop, in cosmetics markets, even though the degree of resilience varies across categories and channels.
L’Oréal is by far the largest cosmetics company worldwide. The only pure player in the top 3.
L’Oréal’s worldwide positions have consistantely improved over the last few years. Our aim is to continue winning market share in all key markets throughout the world, especially in new markets where potential is very high.
All our brands are different and perfectly complementary in terms of cultural origin, positioning and price The brands are rolled out by distribution channel with each division developing a specific vision of beauty: the artistic creativity of hairdressers, luxury in selective distribution, health and skincare in pharmacies, and affordability in mass-market outlets.
4th irresistible force : men. The men’s cosmetics market remains one of the most dynamic. In our sales for exemple, the growth in men’s products was twice that of our cosmetics sales. In Europe, men are gradually starting to consume facial skincare products. And the new generation is consuming. Large numbers of young urban Asian men have already been won over. Their consumption should continue to increase over the coming years
We adopted five major strategic approaches at the start of this year, which will enable us to successfully weather the crisis, to emerge from it clearly stronger, which will drive the group’s growth momentum over the coming years
Landed 26 November 2007 in Milton Keynes (YTD:15 LARGE STORES AND 62 SMALL = 77 TOTAL) This store combines a revolutionary new Beauty treatment for Morrisons with: =>Significant space increases across the whole of H&B => Branded headers on Skincare, Cosmetics, Colourants and Styling =>On shelf education on all of our key categories =>A Beauty Advice terminal (interactive skincare diagnostic, beauty book, advice leaflets and freephone customer helpline) Look based on the “authenticity” of Market Street Allows us to rise to the “H&B Challenge” through incorporating the education, advice, range and choice that Morrisons is so renowned for
Brand plays a key role in consumers’ decision-making process -with a high percentage of shoppers (66-83%) knowing what brand/product they want before entering the store Therefore, important to ensure brands within these categories continue to be clearly sign-posted Furthermore, on-shelf education assist navigation through range In skincare, women find shopping the category confusing and overwhelming in both high-street and supermarkets 32% of high-street skincare shoppers wanting more ‘consultant/advice available’ Whilst having a Consultant within Grocery is costly; shelf-strips can be used to help consumers understand the different franchises Leading to consumers purchasing what is right for them Engagement at fixture is also key – the more engaged a woman is, the higher basket spend is likely to be
Keeping up with the competitive set
Internationally set best practice examples CARREFOUR AUTEUIL: Clean modern, curved shapes invite interaction & evokes care, beauty and femininity. Bold branding plus clear segmentation by brand and age across the category helps navigation. Whilst individual hotspots for ‘NEW’ help to inspire. Dedicated advice area further animates and inspires FAIRPRICE SINGAPORE: Dedicated low level Skincare boutique with diagnosis, education, inspiration and advice GUARDIAN MALAYSIA: Use of low fixtures to encourage browsing, clear signage, education & branding allowing ease of shop, driving penetration and encouraging an indulgent “for me” purchase
