Wednesday, February 18

LOreal and the crisis

L'Oreal has several problems right now. As reported on FashionMag, there will be new products at a lower price and less innovation.
"L'Oréal va donc "compléter chacune de ses gammes par des produits peut-être plus simples, qui ne vont pas rendre les mêmes services, mais qui vont nous permettre de recruter de nouvelles consommatrices" achetant "à des prix plus bas" et avec "moins d'exigences".
"Dans un moment de crise particulier, il serait idiot de ne pas compléter le modèle (basé sur l'innovation et la débanalisation des produits, ndlr) en étant très pragmatique, en offrant des produits différents et plus accessibles.
It concerns mainly the cosmetics but there are also quite a number of fragrances produced by LOreal. When I know how much money they really put in their juices (think Lancôme and Armani) I can only imagine the pressure in the future for the perfumers. But in their prices a lot is devoted to marketing & co. Cutting several percentages from the juice will make their fragrances close to room sprays (in terms of price for the concentrate).
Victor & Rolf will introduce a fragrance priced a third of their range and big quantity. It sounds like Marc Jacobs Splash or the knockoff of this idea sold by Zara.
The future is indeed full of surprises.
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Fragrance is the 8th Art - Octavian Coifan - Le Parfum est le 8ème Art
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