L’Oréal (brand value up 7% to US$12bn) is the overall winner in the Brand Finance Cosmetics 50 ranking.
As one of the world’s most well-known cosmetics brands, L’Oréal operates in over 150 countries and has a global portfolio of over 30 brands. In its analysis, Brand Finance has determined that the key measures of familiarity and consideration towards L’Oréal have increased. This increase may be attributed to the company’s digital marketing strategies and enhanced online presence. By leveraging its large social media following (over 10 million followers on Instagram and 438k+ followers on TikTok), the brand has enhanced its familiarity amongst younger consumers, producing visually appealing content that is often led by popular influencers. Further, L’Oréal also boasts an innovative and continually expanding product range, a key attribute identified in the investment pillar of its brand strength.
Following the appointment of a new CEO in 2021, Nicolas Hieronimus, L’Oréal has also expanded its efforts in digital transformation and sustainability. In 2023, L’Oréal launched two new technology prototypes at CES 2023: HAPTA, a handheld computerised makeup applicator designed for people with limited hand and arm mobility, and L’Oréal Brow Magic, an electronic eyebrow makeup applicator that enables users to achieve a personalised brow look within seconds.
Brand Finance has also ranked L’Oréal as having the highest Sustainability Perceptions Value, with an SPV of US$1.24bn. In addition, L’Oréal has been recognised by Ethisphere as one of the world’s most ethical companies for the 14th time. In recognition of his efforts to promote environmental responsibility, diversity, equity, and inclusion in the fragrance industry, the Fragrance Foundation will award Hieronimus with the Hall of Fame award in June 2023.
Annie Brown, Director of Brand Finance, commented: “L’Oréal has once again come out on top, and Hieronimus has an ambitious and strategic vision for the giant’s future. The L’Oréal brand must continue to prioritise innovation, sustainability and digital transformation as it continues to expand its influence across the globe in the coming years.”
NAM Implications:
- $12bn has to count for something.
- Especially as No.2 (Estee Lauder is worth $7.2bn)
- And as Brand Finance says:
- “The L’Oréal brand must continue to prioritise innovation, sustainability and digital transformation…
- …as it continues to expand its influence.
- Catch up for rivals could prove difficult…
