"Cost Savings, Sales Help L'Oréal's First-Half Profit"

After a difficult year in 2009, the world’s largest cosmetic company by revenue, L’Oréal, has had an operating profit increase of 21% to €1.67 billion this year. They launched a series of initiatives such as new lines of cheaper and more basic products outside their existing brands of Maybelline, L'Oréal Paris, and Lancôme. L’Oréal has been taking advantage of emerging markets in China, Brazil, and India where new western brands products are in high demand. They have expanded their production of new products such as deodorant which has captured a larger range of shoppers. L’Oreal has also benefitted from cutting back on their job perks and traveling cost, however, they have not decided to let up on advertising and research spending.


L’Oréal’s higher price tags on its products have given the company an advantage compared to other companies with tighter margins. By taking advantage of new emerging markets, L’Oreal is going to continue to grow and continue to pressure other cosmetic companies. Their strong rebound from the economic crisis will continue to uphold their reputation as the world’s largest cosmetic company.

As consumers, we will continue to be affected by L’Oréal’s profits as we are bombarded with advertisements selling Maybelline lipstick, L’Oreal’s Paris’s hair product line, and Lancôme fragrances. As business students, this company’s profit is important because it will affect all cosmetic companies in the consumer product goods industry.