Capsule 1: Success factors of Estée Lauder and L'Oréal - GenZ Edition (2024)

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Estée Lauder and L’Oréal are powerful brands because they have a long history of producing high-quality products and have built strong, recognizable brands over time. They have also invested heavily in marketing and advertising to build brand awareness and loyalty among consumers. Additionally, they have diversified their product lines to appeal to a wide range of customers and have expanded into new markets through strategic acquisitions and partnerships. Their size and reputation also allow them to command premium prices for their products, which contributes to their financial success.

GenZ's L’Oréal and Estée Lauder use

Gen Z, also known as the iGeneration or post-Millennials, is a demographic group born between 1997 and 2012. They are the first generation to have grown up with the internet and are known for being tech-savvy and heavily influenced by social media.

In terms of beauty products, Gen Z tends to prioritize skincare over makeup and are more interested in natural and sustainable options. They also tend to use social media platforms to research and discover new products, and to get recommendations from influencers and peers.

Therefore, it is very likely that Gen Z use L'Oréal and Estée Lauder products, however, it is harder to know the exact figures as it depends on the specific product lines and campaigns that the brands have been focusing on.

Estée Lauder's Success Factors

• Strong branding and marketing: The company has built a strong brand image and reputation over the years, through its use of high-profile spokespeople and advertising campaigns.
• Product innovation: Estée Lauder has consistently invested in research and development to create new and innovative products.
• Diversified product portfolio: The company offers a wide range of products, from skincare and makeup to fragrances and hair care, which allows it to appeal to a broad customer base.
• Strategic acquisitions: Estée Lauder has made several strategic acquisitions over the years, such as the acquisitions of M.A.C, Bobbi Brown, and Aveda, which has helped it to expand its product offerings and customer base.
• Strong relationships with retailers: Estée Lauder has built strong relationships with retailers, which allows it to have a wide distribution network and makes its products easily accessible to customers.
• Also, companies maintain their corporate social responsibility in terms of Ethical standards, sustainability, and environmental protection.

This combination of factors has helped Estée Lauder to become one of the world's leading manufacturers and marketers of prestige skincare, makeup, fragrance, and hair care products.

L'Oreal Success Factors

1. Strong brand portfolio: L'Oréal has a diverse portfolio of well-established and recognizable brands, such as L'Oréal Paris, Maybelline, and Garnier, which are trusted by customers and have a strong presence in the market.
2. Innovation: L'Oréal is known for its continuous innovation in products and technologies. The company invests heavily in research and development to create new and improved products.
3. Marketing and advertising: L'Oréal have a strong marketing and advertising strategy, with a focus on digital marketing.
4. Global expansion: L'Oréal has expanded its operations globally, with a presence in over 130 countries. This has allowed the company to tap into new markets and customers.
5. Diversification: L'Oréal has diversified its operations by offering different product lines such as skincare, hair care, makeup, and fragrance. This has helped the company to minimize the risk of relying on a single product line.
6. Focus on sustainability: L'Oréal has a strong commitment to sustainability and has implemented several initiatives to reduce its environmental impact, such as using more sustainable ingredients, recycling, and reducing waste. This has helped to build trust with customers and contribute to its reputation as a responsible company.

L’Oréal and Estée Lauder are two of the world's leading cosmetic and beauty companies, with a history of successful business strategies and financial performance. Both companies have a strong focus on research and development, investing in new products and technologies to stay ahead of trends and meet the needs of their customers. They also have a global presence, with a wide range of products and brands that are marketed and sold in various countries around the world. In addition, both companies have a strong emphasis on branding and marketing and have built strong and recognizable brands over the years. Overall, the combination of these factors has contributed to their success and long-term growth.