L’Oréal said today it was in talks with the Clarins Group in order to buy two “iconic” and global perfume brands for its Luxe division.
If the deal goes ahead it would see the Mugler and Azzaro perfume brands join the L’Oreal Luxe division, alongside stablemates including Giorgio Armani, Biotherm, and Kiehl’s.
Cyril Chapuy, president at L’Oréal Luxe, said: “The perfume category is at the heart of our global strategy for growth at L’Oréal Luxe. In this context, we would be thrilled to welcome Mugler and Azzaro: these signatures, with a long history in fashion and olfaction, would perfectly complete our portfolio of brands.”
The deal is subject to consultation and to regulatory approval. If it goes ahead it is expected to complete during this calendar year.
The L’Oréal group was founded in 1909 by chemist Eugène Schueller. More than 100 years on it owns more than 35 brands organised into four divisions. L’Oréal Luxe includes the Giorgio Armani, Biotherm and Kiehl’s brands. Its consumer products division, includes L’Oréal Paris, Garnier and Maybelline New York, while its professional products division includes Kérastase, Redken, and She Uemura Art of Hair. Its active cosmetics division includes the Vichy and La Roche-Posay brands.
Today it aligns its distribution models to those divisions, engaging with customers buying its L’Oréal Luxe customers though a multichannel model that includes own-brand stores and dedicated websites.
L’Oréal also invests in technology in order to engage consumers, using tools from voice ordering and augmented reality to artificial intelligence, both directly and through strategic partnerships.
L’Oréal is among 10 world-leading brand owners to feature in the latest RetailX report, Beauty & Cosmetics 2019: Sector Analyst Report. They range from global market leaders such as L’Oréal, Estée Lauder and LVMH through to Japan-based Kao Corporation, Korean market leader AmorePacific, and Natura Cosméticos in Brazil. The report also covers the rise of new brands in this area, how techniques borrowed from fast fashion may impact on the sector, and how new technologies such as augmented reality are being put to use in this market.
Find out more about the Beauty & Cosmetics 2019: Sector Analyst Report here, and about RetailX, the research arm of InternetRetailing, here.
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