Key competitors of L’Oréal Paris and Nivéa

The cosmetic market is huge. When we talk about cosmetics, we talk about body and face creams, soaps, haircare, make-up but it can also be perfumes.  This market can be segmented regarding types of brands: luxury ones (Dior, Guerlain, Chanel, Lancôme, Yves Saint Laurent, Estee Lauder, Clarins…), mass market brands (l’Oréal Paris, Nivea, Yves Rocher, Garnier, Lovea…), dermocosmetic brands (Uriage, Vichy, La Roche Posay, Avène, Biotherm…). There is also an increase of brands specialized in the creation of organic or natural cosmetic products such as Lush, Melvita, Cattier. Some famous brands also develop more and more natural products (Clarins, Mixa Bio…), change their positioning to be more nature-friendly (Yves Rocher) or develop a mencare range of products (L’Oréal Men Expert, Clarins Men, Nivea Men…)

L’Oréal is the cosmetic leader in general as it owns a lot of different cosmetic brands : for example Lancôme, Yves Saint Laurent regarding luxury brands, l’Oréal Paris, L’Oréal Professionnel, Garnier, Mixa regarding mass-market brands and Vichy, La Roche Posay regarding dermocosmetic brands.

L’Oréal Paris is the leader in mass market cosmetics. Nivea is one of the prefered brand of French people regarding mass market cosmetics but does not have much as success as L’Oréal. We will see how do these brands differentiate regarding their strategy, their communication.

Cosmetic brands need to innovate in order to compete with other brands. Actually, Research & Development is very important to compete with competitor’s new products. For example, Lancôme’s searchers worked during 10 years to develop the LR 2412 molecule, used in the new Visionnaire facecare. This new care is protected by 20 patents. What are the promises?  In 4 weeks, wrinkles, pores and unevenness are visibly corrected. With this care, Lancôme is competing with the Idealist Serum from Estee Lauder (almost launched at the same time), the first fast-acting Serum proven to dramatically reduce the look of uneven skintone such as redness, acne marks, dark spots, sun spots discolorations.

Cosmetic brands also need tu use a good communication to compete with other brands. Some cosmetic brands have a huge budget regarding their communication and use special strategies to attract customers.

For example, l’Oréal Paris uses a lot of models, famous actors or actresses to represent its brand : Eva Longoria or Doutzen Kroes for makeup, Laetitia Casta, Claudia Shiffer for haircare.

Nivea uses different ways of communication by playing more on the family sense. There were on every limited edition for the 100 years of the famous Nivea Cream a baby, a woman or an ethnic girl. Nivea will never have any icon as l’Oréal does on each advert. But in 2010, Rihanna was the ambassador of Nivea and there was a game to win places for her concert.

 

 

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1 Comment

Filed under Competition

One response to “Key competitors of L’Oréal Paris and Nivéa

  1. This is an outstanding write-up and I completely comprehend where your coming from within the third section. Perfect read, Ill regularly follow the other reads.

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