Loreal Pest Analysis

POLITICAL:

L'Oreal, the world's largest cosmetics company entered the booming Indian hair color market in 1997. Since then, it has been meeting demands of its Indian consumers, competed from local and international companies and expanded from cities to the two and three-tier towns of India

ECONOMIC:

Buoyed by the 40 per cent growth in its India operations, L'Oréal has identified the country as one of its top-five growing businesses globally. The French cosmetics major's sales in India grew 40.3 per cent last year

Jean-Paul Agon, the CEO of L'Oréal, has termed this potential as a big opportunity for the company. The company sees an addition of 70 million new consumers due to growth in per capita income in the world's population projected by the World Bank.

The company plans to open 110 more Body Shop outlets across the globe next year. The share of the Indian market to L'Oréal's turnover of ¤15.8 billion is small, but is growing, said the company. With other emerging economies, India's contribution to the growth in the global cosmetics market amounts to 60 per cent.

Its portfolio of brands includes the cosmetics range of LÓréal Paris and Maybelline NY, shampoo range Garnier, luxury products such as Lancóme and active cosmetics such as Vichy. Its closest global competitor in the premium make-up segment is Revlon.

SOCIAL:

Because L'Oréal's business is at the center of people's everyday lives and well-being, the Group is closely involved in the life of the communities in which its facilities are located.

L'Oréal operates in India through its wholly owned subsidiary, L'Oréal India, and has four divisions -- consumer products, professional products, active cosmetics and luxury products.

The beauty and wellness sector in India is on the brink of a boom, according to research agency AC Nielsen.

L'Oréal has a duty to conduct itself as a socially responsible company and wants to contribute to projects that help the public, in the form of long-term sponsorships and partnerships.

These are often local initiatives focusing on specific issues - women and science, solidarity, education - and are consistent with the values that the Group has espoused for almost a century. The aim of these initiatives is to establish a strong foothold in the economic and social life of the countries in question.

The most striking and symbolic example of L'Oréal's social commitment is the international corporate program For Women in Science, developed in partnership with UNESCO.

TECHNOLOGICAL:

Founded