Jeudi 13 janvier 2011

L'Oreal's success story in India

When L'Oreal's Professional Products Division entered India in 1997, there wasn't a sniff of structure in the hairdressing industry.
Organised education was absent, training considered redundant and hairdressers content with dubious domestic brands and
prohibitively expensive foreign ones.

L'Oreal had the vision to realise all that would change and invested heavily in hairdressing
education and training. Today, the hair care industry is pegged at Rs 200 crore (Rs 2 billion),
growing in double digits, and L'Oreal Professional Products -- Professionnel and Kerastase -- are
market leaders.

L'Oreal Professional Products prides itself on a product they believe is technologically

unmatched. "3.5 per cent of our sales are pumped back into research & development; the best
technology goes back into the trade," says Vismay Sharma, director, L'Oreal Professional
Products Division. Their headstart also ensured broad distribution.

"We skim the top 100 cities in India and have the largest salon base in the country, of which 20
per cent is exclusive to us, contributing to 40 per cent of our revenue." Says Sharma, "Our
biggest cost is the education of our trade. We have over 40 trainers; it's an entire machine that
needs constant oiling."

But competitors are eating into the same strategy. Both Schwarzkopf, at the number two position
in the industry, and Wella have launched technical training centres. Schwarzkopf even launched
a by-invitation-only hairdressers club and flew 150 members to Goa for an inaugural meeting.

Shekhar Sethu, general manager, Schwarzkopf, is honest about a return on investment, "We do
demand an increased commitment to turnover in return, whereby they become exclusive, high
volume buyers." Wella, which entered India in 2001, is aiming to be in 5,000 salons by June
2006.

Professionnel in its turn has just announced Colour trophy, a nationwide quest to find the most
creative hairdressers in the country and just this month sponsored two hair shows besides their
annual showcasing of global fashions in hairdressing and colour.

Wooing potential affiliates into the network? "Not at all," says Sharma, a little unconvincingly.
"It is more a platform to unleash creativity than a commercial venture. Sure the participants will
use L'Oreal products, but how many tubes of colour can they use? We just want to be
instrumental in creating new trends."

But even shows are not exclusive L'Oreal property. Both Schwarzkopf and Wella also showcase
their interpretations of annual trends.

And in a revision of distribution strategy, Schwarzkopf has just begun retailing their hair colour
range to power growth. Sharma reacts, "L'Oreal Professional Products began by selling through
Parisienne salons. That's at the heart of our business; we will not dilute it by retailing for home
use."

Okay, so the L'Oreal brand is strong, well established within target markets, and Sharma claims
sales are up in India, although figures don't come by easily in the discussion. Well, this was the
time, then, to become more proactive than ever before; to begin the task of figuring out just what
it was going to take to sustain their competitive advantage and ensure that they stay at the cutting
edge of their field.

And so, in February this year, L'Oreal announced the arrival of Matrix (their number one brand
in the US), an affordable range of hair products to add to their existing offering.

Explains Sharma, "We needed to offer Indian hairdressers the option of using a professional
brand at this price point." The value proposition is similar. Both brands offer all the support
hairdressers need, from education, complete in-salon marketing, and salon promotions. Matrix,
however will thrive on depth of distribution, with a training centre in every city it retails in.

"Matrix is young and hip. It's the best technology at that price," says Aseem Kaushik, business
manager, Matrix. "I predict Matrix will be the biggest brand in India in five years or less, and it
will bring in 8-10 times the revenue Professionnel does; division sales will be up by 65 per cent.
The two brands will have to fight neck and neck," laughs Sharma.

And then more seriously, "We will be the only company to offer products at three different price
points -- luxury, premium and affordable. We will have a combination no one can beat." And so,
L'Oreal Professional Products hang on to prime position for a while longer. 

 
Arati Menon Carroll | September 26, 2005

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Liste d'articles
 L'Oreal's success story in India
 L'Oreal found guilty of racism in shampoo ads
 Body Shop faces possible takeover from L'Oreal
 L’Oréal Case Heralds Greater Protection for Well-Known Brands
 Reveal by L'Oréal
 L'Oreal puts on a good face
 Bienvenue sur OverBlog

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Jeudi 13 janvier 2011
L'Oreal found guilty of racism in shampoo ads
Executives at the French cosmetics giant had sought an all-white team of
sales staff to promote its Fructis shampoo

Adam Sage in Paris

L'Oréal, the French cosmetics giant, was found guilty today of racial discrimination after the highest court
in France heard that executives had sought an all-white team of sales staff to promote its shampoos.

La Cour de Cassation was told that Garnier, L'Oréal's beauty products division, tried to keep black, Asian
and Arab women from selling its Fructis shampoo in French supermarkets.

Adecco, the temporary recruitment agency whose Districom division hired the hostesses, was also found
guilty of racial discrimination.

L'Oréal expressed "disappointment" over the judgment, which ends three years of legal wrangling over
the discrimination claims.

Adecco declined to comment.

Samuel Thomas, the vice-chairman of SOS Racisme, the anti-racist campaign group, described the ruling
as a "very great victory".

The court was told that a Disticom executive had sent a fax in 2000 saying that Garnier's hostesses
should be aged 18 to 22, wear size 38 to 42 clothes and be "BBR".

This stands for "bleu, blanc, rouge" (blue, white, red) — the colours of the French flag — and is a well-
known code for white people, La Cour de Cassation was told.

Prosecutors said that Garnier wanted to exclude members of the ethnic minorities on the grounds that
they would be less likely to win custom for its shampoo in French stores.

The court was told that only 4.65 per cent of the hostesses hired for Garnier's campaign were black,
Asian or Arab.

Thérèse Coulange, the deputy managing director of Districom, who sent the fax, said that she had merely
wanted hostesses able to "express themselves correctly in French".

The Paris Appeal Court had fined L'Oréal and Adecco €30,000 each and ordered them to pay a further
€30,000 each in damages to SOS Racisme.

La Cour de Cassation upheld the fines but told the appeal court judges to reconsider the damages.

 
 

Opinion

Racism is a very bad thing and that L’Oreal does this is very shameful. But it’s also true that
different types of persons have different types of hair. But this does not justify racism and
L’Oreal really damaged its reputation in my eyes.

 
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Dimanche 9 janvier 2011

Body Shop faces possible takeover from L'Oreal

by Heydon Prowse, brandrepublic.com, 24 February 2006,
12:25PM
LONDON - L'Oreal, the French global beauty business, is
considering a bid for Body Shop International, the cosmetics
retailer famed for its ethical stance.
Body Shop shares rose more than 10% after media reports
named L'Oreal as a possible bidder.
In a statement, the L'Oreal company said: "L'Oreal's
management is continually evaluating a wide range of strategic
alternatives that may add value to its shareholders, including a
possible offer for Body Shop."
Dame Anita Roddick, who founded the Body Shop 30 years ago,
styled the brand as an ethical alternative, specialising in natural
products and opposed to animal testing. She stepped down from
management in 2002 but has retained an 18% stake in the
company.
If a deal goes ahead, there are concerns about how Body Shop's
image as a corporate good guy will be affected. L'Oreal has
previously come under fire for animal testing from animal rights
charity Peta and the company is also part-owned by Nestle,
which was condemned by Oxfam for its business practices in
Ethiopia.
Anita Singh of Peta said: "Big companies are learning that
consumers care about compassionate cosmetics. We hope Body
Shop convinces L'Oreal to adopt more ethical standards."
L'Oreal's move on Body Shop mirrors a recent trend for
multinationals to snap up small, ethical brands, such as Cadbury
Schweppes' takeover of Green & Black's, including the world's
first Fair Trade chocolate bar, Maya Gold.
However, Roddick has been highly critical of L'Oreal's ethical
practices in the past. A section of her website headed 'Because
You're Not Worth It' sees her rail against the global cosmetics
company.
As one of the Body Shop's single biggest shareholder, Roddick's
reaction to any proposed take over will be decisive.

Source:

http://www.brandrepublic.com/news/543281/Body-Shop-faces-
possible-takeover-LOreal/

My reaction on this article:

This article is from a few years ago. Now, L’Oreal is owner of the
Body Shop. This has had only a positive impact on the reputation
of L’Oreal. Consumers saw L’Oreal as a company who doesn’t
really care about the environment. L’Oreal tried to change this
image by using advertisements but it didn’t had the result they
wish. This advertising campaign didn’t work because lots of
people don’t believe advertising campaigns, they want action!
Buying the Body Shop shows directly to consumers that L’Oreal
DO care about the environment. That they act like that! People
read about the acquisition in newspapers, magazines etc. It
shows that L’Oreal takes direct actions to help the environment.
So L’Oreal increases their reputation by acting like a
responsible/environment friendly company.

Ankie Withag
 
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Dimanche 9 janvier 2011

L’Oréal Case Heralds Greater Protection for Well-Known

Brands
June 01, 2010
In a recent case the European Court of Justice (ECJ) outlined the
circumstances in which trade mark owners who have built up a
reputation are entitled to protect their mark against unfair
advantage by another party in the context of comparative
advertising. In the case of L’Oréal SA v Bellure NV, L’Oréal took
an infringement action against companies that sold and marketed
imitations of L’Oréal’s well-known perfumery collection. Some of
the imitations were being sold in bottles and packaging similar to
those of L’Oréal and also possessed a similar scent. These
imitations were sold for less than the L’Oréal equivalent and were
advertised using a comparative list, which indicated the trade
mark of the L’Oréal product it sought to imitate.
L’Oréal claimed that imitation of its bottles and packaging and the
sale of perfumes in such packaging took unfair advantage of the
distinctive character and repute of its trade marks and
constituted trade mark infringement. Neither party disputed that
the similarity was unlikely to mislead the public. L’Oréal also
claimed that use of its trade marks in the comparison lists
infringed its rights vis-à-vis its trade marks.
ECJ preliminary ruling
The ECJ stated that Article 5(2) of the Trade Marks Directive
envisaged three types of injury, namely detriment to distinctive
character, detriment to repute and taking unfair advantage of the
distinctive character or repute of the mark. It clarified that just
one of three types of injury was sufficient for an infringement
action and that trade mark owners who have built up a reputation
are entitled to protect their mark against unfair advantage
without having to show a likelihood of confusion or a likelihood of
detriment to the distinctive character or repute of the mark.
Unfair advantage is taken where one party, in using a sign similar
to a renowned mark of another party, seeks to ride on the coat
tails of that mark in order to benefit from the power of attraction,
the reputation and the prestige of that mark. The ECJ elaborated
that for an unfair advantage to be taken there needs to be a
connection in the minds of the public between the renowned mark
and the later mark, factors such as the strength of the trade
mark’s reputation and similarities between the marks and their
goods and services are relevant in considering whether such a
link exists.
The ECJ found that a trade mark owner is entitled to prevent a
third party from using an identical sign in relation to identical
goods in a comparative advertisement, which does not satisfy the
conditions necessary under the Comparative Advertising
Directive, even where such use does not jeopardise the essential
function of the mark provided it affects or is liable to affect one of
the other functions of the mark. It further found that a party who
in a comparative advertisement presents its products as an
imitation or replica of a product bearing a well-known trade mark
is not acting in accordance with fair competition and any
advantage gained by the advertiser must be considered to be an
advantage unfairly taken of the reputation of the mark.
L’Oréal principles applied
The ruling offers further guidance for national courts.  The English
courts have already applied the L’Oréal principles in subsequent
cases. The English Court of Appeal in Whirlpool Corporation v
Kenwood Ltd referred to the L’Oréal case but found that the facts
in Whirlpool were different since the necessary element of
commercial advantage had not been established. In Daimler AG v
Sany Group Company Limited the English High Court found that
Sany had not infringed the well known Mercedes-Benz mark. It
found that the average consumer would not make a link between
the two logos which would lead to exploitation of the well-known
mark; even if it did, it was decided that there was little evidence
that Sany had taken unfair advantage of the Mercedes-Benz
mark.
Conclusion
The L’Oréal ruling has widened the scope of protection for trade
mark owners.  It is only necessary to prove one type of injury to
evidence infringement of Article 5(2) of the Trade Marks
Directive. However the case is applicable only to the owners of
trade marks which are well-known or have an established
reputation. The case also offers greater protection for trade mark
owners against imitation of their brands. Advertisers should
ensure that any comparative advertising practices adhere to the
relevant rules and that any comparisons used do not unfairly
leverage the reputation of a third party’s mark.
For further information, please contact Leo Moore or Marie
McGinley of our Technology & Commercial Contracts Department

http://www.williamfry.ie/publication-article/lor
%C3%A9al_case_heralds_greater_protection_for_well-
known_brands.aspx?
paid=0&keyword=heralds&month=0&year=0

My reaction on this article :

In my opinion this problem is since a few years upcoming. More

and more wellknown brands have problems with imitates of their
products. This could damage their reputation. Sometimes the
imitations look so realistic that it is hard to believe that it is
actually fake. In my opinion it is good that L’Oreal fight against
this imitated products. When people think to buy a real L’Oreal
product but in fact they buy a imitation of the real product (for
example on the internet), it could damage the reputation of the
brand enormously. It could damage the reputation in three
different ways: It could detriment the distinctive character, it
could detriment the repute and it takes unfair advantage of the
distinctive character or repute of the mark. So, L’Oreal knows the
importance of a good and stable reputation, they want to stay
authentic.

Ankie Withag
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Dimanche 9 janvier 2011

Reveal by L'Oréal
L’Oréal ha anunciado el lanzamiento de REVEAL by L’ORÉAL, un juego de orientación profesional
comprometido con los jóvenes que permite a los estudiantes evaluar y explorar su perfil de forma online.
Abierto a estudiantes de cualquier disciplina, REVEAL by L’ORÉAL representa una herramienta
pedagógica directa para los jóvenes que quieren saber más acerca de sus posibles opciones de carrera en el
futuro y conseguir una visión completa de sus competencias individuales.

REVEAL by L’Oréal es una revolucionaria plataforma virtual interactiva, que permite a los estudiantes de todo
descubrir sus preferencias profesionales. Los estudiantes representan el papel de un director en prácticas, que
comienza a trabajar en L’Oréal y que desde el primer día tiene que acompañar a su jefe por todo el mundo para
desarrollar un proyecto, que conlleva desde el descubrimiento de una nueva molécula en los laboratorios, pasando
por el desarrollo de un nuevo producto hasta, finalmente, el lanzamiento del producto en los diferentes mercados del
mundo.

Durante este viaje, irá conociendo a diferentes interlocutores virtuales de distintas áreas del negocio, y de esta
manera, se “revelarán” – de ahí el nombre en inglés “REVEAL” – los talentos naturales que el estudiante tiene para
desarrollar una carrera profesional, ofreciéndole una visión y una orientación única sobre qué profesión se adapta
mejor a sus competencias y personalidad.

REVEAL by L’Oréal  se dirige a estudiantes de la “Generación Y”, muy ambiciosos, exigentes, positivos, creativos,
“multizaping”, internacionales, y que quieren hacer todo tipo de tareas en su particular descubrimiento del mundo y
de la empresa. Aún así, son jóvenes que están un poco perdidos sobre qué es lo que pueden hacer y quieren hacer.
Lo que pretende REVEAL by L’Oréal es ofrecerles precisamente un panorama más preciso sobre lo que es posible
hacer en el seno de una empresa, y porque no, también abrir la posibilidad a que puedan participar en el proceso de
selección para el área del negocio que les guste dentro de L’Oreál.

Para ayudarles en este proceso de elección de su futuro, REVEAL by L’Oréal les propone descubrir 5 especialidades
a través de 5 salas virtuales: marketing, finanzas, industria, comercial / Category Management e investigación en
laboratorios. 

Además de poder detectar sus preferencias profesionales sin ideas preconcebidas, la ventaja de este juego es la de
poder entrar a formar parte en un proceso de selección de L’Oréal, y por otro lado, divertirse, viajar virtualmente e
interactuar con otros estudiantes a través de redes sociales. 

“Como empresa pionera en innovación, L’Oréal se siente orgullosa de ofrecer una oportunidad a la nueva
generación de estudiantes. La diversidad configura el ADN del Grupo por lo que creemos que ayudar a los jóvenes,
con cualquier tipo de currículum, a explorar sus opciones de carrera son parte de nuestra responsabilidad como
empresa social” afirma Didier Guillot, Director de Recursos Humanos de L’Oréal España. 

 
 

L'Oreal has announced the launch of REVEAL by L'Oreal, a set of professional

orientation of young people committed to enabling students to evaluate and explore
their profiles online. Open to students from any discipline, REVEAL by L'Oreal is
a direct educational tool for young people who want to know more about possible
career options in the future and get a complete view of their individual
competence.

REVEALbyL'Oréal is arevolutionaryinteractiveonline platform where students

represent the role of a trainee manager who began working at L'Oréal and that
from day one has to accompany his boss around the world to develop a project that
entails since the discovery of a new molecule laboratories, including development
of a new product to eventually launch the product in different markets worldwide.

With all of that L´Oreal intend to show what people can do in the company, what
function is better for each person, to open the possibility to participateinthe
selection processforthebusinessareatheylikewithin theL'Oreal and for assisting in
this process to choose their future, REVEAL invites you to discover 5 specialties
through 5 virtual rooms: marketing, finance, industry, commercial / Category
Management and research laboratories. Also being a good way to meet other
students and to have fun.

"As a pioneer in innovation, L'Oréal is proud to offer an opportunity for the new
generation of students. DNA diversity of the Group set up so we believe that
helping young people with any type of curriculum, explore their career options are
part of our social responsibility as a company, "said Didier Guillot, Director of
Human Resources at L'Oréal Spain.

Source: http://noticiasdeempresas.wordpress.com/2010/03/02/reveal-by-l
%E2%80%99oreal-una-herramienta-de-orientacion-profesional-revolucionaria/

 
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Articles récents
 L'Oreal's success story in India
 L'Oreal found guilty of racism in shampoo ads
 Body Shop faces possible takeover from L'Oreal
 L’Oréal Case Heralds Greater Protection for Well-Known Brands
 Reveal by L'Oréal
 L'Oreal puts on a good face
 Bienvenue sur OverBlog