LILIANE BETTENCOURT

Historical Background.

Born in Paris, France, the only child of Louise Madeleine Berthe and Eugène Schueller, the founder of L'Oréal.

In 1907, Eugène Schueller, a young French chemist, developed a hair dye formula called Auréale.

On 31 July 1919, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair Dye Company of France).

The guiding principles of the company, which eventually became L’Oréal, were research and innovation in the field of beauty.

Historical Background Cont'd

In 1920, the company employed three chemists. By 1950, there were 100 ; that number reached 1,000 by 1984 and is nearly 2,000 today.

In 1950 she married French politician André Bettencourt, who served as a cabinet minister in French governments of the 1960s and 1970s and rose to become deputy chairman of L’Oréal.

In 1957 Bettencourt inherited the L'Oréal fortune when her father died, becoming the principal shareholder.

In 1963 the company went public, although Bettencourt continued to own a majority stake.

In 1974, in fear that the company would get nationalized after the French elections, she exchanged almost half of her stake for a three percent (3%) stake in Nestlé S.A.

Historical Background Cont'd

Breakdown of share ownership: 30.5% by the Bettencourt family, 29.3% by Nestlé, 24.5% by international institutional investors, 8.27% by French institutional investors, 4.99% by individual shareholders, 1.72% treasury stock and 0.7% by employees.

Steps To Success.

1909-1956; The first steps, constructing a model. In 1909, Eugène Schueller, a

young chemist with an entrepreneurial spirit, founded the company that was to become the L’Oréal group.

Began with one of the first hair dyes that he formulated, manufactured and sold to Parisian hairdressers.

With this, the founder of the group forged the first link in what is still the DNA of L’Oréal: research and innovation in the service of beauty.

Steps To Success.

1957-1983; “On the road to the Grand L’oreal. These are the formative years of “Le

Grand L’Oréal. The company motto is “Savoir saisir

ce qui commence” (seize new opportunities)

The Group starts to expand internationally.

Acquisitions of strategic brands mark the beginning of a period of spectacular growth for the company.

Steps To Success.

1984-2000; Become number one in the beauty industry. These twelve years are marked by a

great period of growth for L'Oréal, mainly driven by the significant investments made by the group in the field of research.

strategic product launches that not only make history, but also succeed in strengthening the Group’s brand image.

Group would completely change in scope to become the world leader in cosmetics through the worldwide presence of its brands and strategic acquisitions.

Steps To Success.

2001-Present Day; Diversity of Beauty Worldwide. There is no single type of beauty; it is a

multiple-faceted quality framed by different ethnic origins, aspirations, and expectations that reflect the world’s intrinsic diversity.

With a portfolio of powerful, international brands, L’Oréal enters the 21st century by embracing diversity in its global growth agenda.

Group continues to make new acquisitions to cover the world’s varied cosmetic needs, and to undertake new socially responsible initiatives in the interests of sustainable development for all.

Achievements.

L’Oréal owns 18 research centres around the world, in France, China and the US.

Has a strong research division, which focuses on improving scientific knowledge of colour, skin, and hair and developing new and innovative products.

One of the current projects involves a pill to prevent grey hair.

A total of €720.5m was spent on cosmetic and dermatological research in 2012, with 613 patents filed.

Achievements.

In November 2012, L'Oréal inaugurated the largest factory in the Jababeka Industrial Park, Cikarang, Indonesia, with a total investment of US$100 million.

The production will be absorbed 25 percent by domestic market and the rest will be exported.

In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales.

Achievements.

L’Oréal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances.

On 17 March 2006, L'Oréal purchased cosmetics company The Body Shop for £652.3 million.

The Body Shop founded in 1976 by Anita Roddick has 2,400 stores in 61 countries.

Achievements.

L’Oréal has acquired Kenya’s Interconsumer Products Ltd, makers of Nice & Lovely brands on 12th April 2013.

Kenya’s most revered brands like Nice & Lovely, Queen Elizabeth, Clarion and Bouncy.

Deal is believed to be worth Ksh 3billion ($35.3 million).

It’s a great Kenyan story for a man who started the business in Kariobangi and has now joined the billionaires’ club.

Achievements.

2013; Ranked 25 in the world’s most powerful brands by Forbes Magazine.

2013; Ranked 3rd in the top 10 beauty brands (1st & 2nd being Olay and Avon respectively).

On July 31, 2012, L’Oréal USA received the "Diversity and Inclusion" Award (DANDI) for its commitment and innovative action with regard to Diversities

April 2012.;L’Oréal Canada received the “Best Diversity Employers” Awards in recognition of their employee training program that promotes the understanding of differences and openness to others

October 2012. L’Oréal Mexico received the “Gender Equity Model” Label for professional gender equality from the Mexican Ministry of Women.

Initiatives Across The World.

Citizen Day was inspired by the celebration of L’Oréal’s 100th anniversary in 2009 when 100 community projects were initiated across the world and employees were encouraged to volunteer their time.

L’Oréal has since committed to mobilizing its employees around the world for one day every year.

This year, more than 25,000 employees in 60 countries participated mainly during the month of June.

Initiatives Across The World.

In 1987 Bettencourt, together with her husband and daughter, founded the Bettencourt Schueller Foundation to support and develop medical, cultural and humanitarian projects.

“Liliane Bettencourt Prize for Life Sciences” is an annual award to a top European biomedical researcher under the age of 45. Winners receive €250,000 to support their work in the field of life science.

Some of L’Oréal Brands.