L’Oreal sees big gains to be made in the dermo-cosmetics arena and the Active Cosmetics Division’s general director believes that having strengthened its market position, its 2 targeted brands, Vichy and La Roche-Posay, are well placed to drive on.
Brigitte Liberman believes that after relatively dynamic growth in 2013, the dermo-cosmetics market is in a strong position, outpacing the global beauty market, and with 1 in 4 skin care products sales in Western Europe taking place in pharmacies or health and beauty shops.
Dermo-cosmetics are recommended for specific skin care needs and the market represents 4.4% of the global beauty market, valued at about €7.6 billion.
Whereas the global beauty market increased by 3.8% in 2013, the dermo-cosmetics sector experienced a 4.8% growth rate, led by a vital Western Europe market and accelerated development in new markets such as China and Latin America.
In this context, L'Oréal Group's Active Cosmetics division progressed at a relative rate of 7.8%, thus establishing it as the market leader, and explains Liberman’s optimism.
The Division head explains that the company were able to outperform the market by strengthening its positions across all markets and diversifying its distribution channels; favouring pharmacies, adapting its reach to health and beauty shops, and creating derma-centres within shopping malls offering advice.
“And then I'd say the growth of our brands portfolio which is quite unique when compared to our competitors,” adds Liberman. “It is much more focused today, much stronger, well directed and well constructed around two large global brands, Vichy and La Roche-Posay.”
And it is these two brands where the opportunity lies, as they are already amongst the top 3 global dermo-cosmetic brands.
Liberman says this is because they target a consumer section that researches the safety, effectiveness and reinsurance of skin care products on a global scale.
“The second reason for our optimism regarding Vichy and La Roche-Posay is that they are both expert brands in skin care,” she continues.
“Being classed as an expert in skin care is definitely the most important and most dynamic feature one could possess at the global level and means that, in regards to composition, and the tolerance or efficacy tests we carry out, we work together with many scientists and dermatologists in particular.”
This, in-turn, adds credibility to the products. Both brands are also targeted with the Group’s vision of health and beauty in mind.
La Roche-Posay mostly specialises in sensitive skin types, whereas Vichy is more of a premium brand offering both genders skin solutions regardless of skin type and environment. “We have two highly complementary brands in beauty matters,” says Liberman.