a.

Strength
Largest Beauty/ Cosmetics company: L'Oreal Group has a strong brand presence in
over 130 countries. L'Oreal has become one of the leading cosmetics groups in the world
with annual sales of up to 23 billion euros. The company elevates its position in the field
of beauty products when owning many famous cosmetic brands in the world such as:
Lancôme, The Body Shop, Maybelline,... L'Oreal has been present in Vietnam since 2007
along with product lines of 28 other international brands. These brands are always loved
and trusted by many Vietnamese people.
Fantastic product and brand portfolio: The brand offers an extensive range of products
catering to the needs of diverse consumer segments. This depth of selection helps to cater
to a wide customer base. L’oreal has ensured that each brand, as it is established, keeps
the focus on its core strength. For example, when Garnier is focused towards stronger
hair and personal care, Maybelline is focused towards beautification. And both of them
are excellent in what they do.
Strong R&D activities - The outstanding performance of L'Oréal products is the result
of modern science, developed by 4,000 researchers in 21 research centers around the
world. This is at the heart of everything L'Oreal has been doing since its founding more
than 110 years ago. The company is known for its heavy focus on innovation and
research. L’Oréal has developed Skin Maps of all ethnicities, to objectively compare the
effects of products and treatments. Each product is tested on a variety of skin types and
colors, and across different age groups. Thanks to that data and knowledge, L'Oreal can
promise proven results and truly outstanding performance, and it is through this
humanistic, transparent scientific vision that L'Oreal has built consumer trust over the
years and continues to do so.
High - quality products - The common feature of the L'Oreal cosmetic line is that the
ingredients are safe and extremely benign, and do not contain substances that are harmful
to the skin and health. All products before being put on the market are tested many times,
ensuring safety with many new objects officially distributed to the outside. Up to now,
L'Oreal has not recorded any case of allergy or irritation with any of the product lines that
have been launched. L'Oreal's product lines are all researched by well-known, highly
specialized experts, production process, and strict censorship right from the selection of
raw materials to the product launch. Since 1987, L’oreal has stopped animal testing
completely. It is 100% natural and organic in nature and hence the choice of animal
lovers.
Strong integrated marketing communications - Each brand in the portfolio of L’oreal
is known for its integrated marketing communications. Not only are these brands famous
for their above the line marketing campaigns, but they are very good in their point of
purchase marketing as well.
 b. Weakness
Too many sub divisions – Handling such a large operation is always fraught with
problems and issues and this is the case in L’oreal. The firm is known to be slow and
bulky because of the various subdivisions it has. Employee management is also a
problem in L’oreal as the firm has close to 60,000 employees. Therefore, the cost of
human resources is very large.
Shrinking Profit – High investments in R&D, organic processes as well as the massive
expenses of distribution means that the profit margins of L’Oréal are a bit lower as
compared to competitors. Still, focusing heavily on research and development is how
L'oreal becomes one of the top brands in the beauty segment. So this is both a strength
and a weakness for the brand.
Stiff competition from other leading cosmetic brands - The cosmetic, beauty, and
personal care industry is the world’s most competitive industry. For example, Garnier’s
competitors are Sunsilk belongs to HUL and Head and Shoulders from P&G, both are
very strong in the hair care segment. Despite the leading position of large Western
corporations such as Estée Lauder, L'Oréal, LVMH, Coty... and the ability to create
trends of young brands (Kylie Cosmetics, Huda Beauty, Fenty Beauty... ), Asian
cosmetics still strive to make a name for itself in the world beauty market with its ability
to create trends and innovate non-stop. It’s increasing the competition and jeopardizing
the company’s market position.

c. Opportunity
Market potential – The market potential of personal care and beauty items is only going
to increase. Developing economies and countries are becoming new markets. Exploring
these new markets will give better sales down the line to L’oreal then staying in the same
saturated markets. L'Oréal leaders said that while L'Oreal product sales in some other
markets grow only 7 - 8% / year, in Vietnam, there are times when sales increase up to
17% / year, showing that the demand for cosmetics in Vietnam is very large. With living
standards continuing to improve, more and more Vietnamese women use cosmetic
products for beauty care as an essential need. A survey on the use of makeup cosmetics
of nearly 500 women aged 16-39 across the country showed that, in the last 3 years, the
number of women wearing makeup increased from 76% to 86%.
Product mix expansion – Expanding the product lines as well as introducing new
products in the product mix will result in the complete product mix expansion –
something which will be the target of L’oreal management as well.
Demand for organic cosmetics – As PETA and other animal right activists are
becoming active, the demand for organic cosmetics is on the rise. A recent survey found
that 1/3 of consumers prefer eco-friendly options, 35% of consumers are willing to spend
more money on eco-friendly products and 56% consider paying more for eco-friendly
products. This demand is a positive sign for the likes of L’oreal which have used organic
methods of R&D since the start. In 2019, L'Oreal created global attention when it
collaborated with the world's leading packaging technology company, Albea, to launch
the world's first tube packaging with integrated materials. cardboard paper. It helps to
reduce 45% of the amount of virgin plastic used in packaging production that has flooded
the media channels, opening a new era for a sustainable and environmentally friendly
beauty industry and growing in an orientation that respects the limits of the planet.

d. Threats
The situation of counterfeit goods is rampant - L'Oreal's cosmetics market in Vietnam
is almost dominated by hand-crafted and counterfeit goods by more than 60% (data is
based on distribution channels on both online and offline channels).
Dynamic nature of the cosmetics industry – With constant updation being demanded in
the cosmetics industry, keeping up with the times is ultimately very difficult. The
customer trends, choices, preferences, new products with better reviews, or celebrity
endorsement are always changing and shifting the dynamic of the market. It’s become
very expensive to keep up with the market trends and launch innovative products. Plus,
the competition is not going to keep quiet and they keep coming up with smart tactics of
their own. As a result, the dynamic nature of the cosmetics industry keeps the brand on its
t
Fierce competition - Numerous international cosmetic brands are fiercely competing in
the Vietnamese market to secure a portion of the lucrative market share. Renowned
names like L'Oréal, The Face Shop, Shiseido, Clarins, Dior, Chanel, MAC, … which
mainly cater to mid to high-end segments, have already established their presence in this
market. In the midst of that fierce competition, brands from Northeast Asian countries
such as Korea and Japan seem to have the upper hand, due to being suitable for Asian
skin. Over the past two decades, a series of high-end Japanese cosmetic brands have risen
to success such as Shiseido, SK-II, and Naris.
Cash flow issues - As we know that L’Oreal produces a lot of products in various
segments. The demand for every product in every segment doesn’t stay the same. It keeps
on changing depending on various macro-environmental factors. Sometimes, the demand
for one product goes up and the other goes down. It impacts profitability and causes cash
flow issues.
Economic problems - The pandemic crisis, worldwide lockdown, the shutdown of
businesses, and increasing unemployment have decreased L’Oreal’s annual revenue and
net profitability. The economic uncertainty and tight salaries are forcing people to reduce
spending their money on luxury items like personal care. That’s why the sale of beauty
products is declining.
SWOT:
https://brademar.com/phan-tich-mo-hinh-swot-cua-loreal-2/
https://www.marketing91.com/swot-analysis-loreal-2/#Threats-in-the-SWOT-analysis-
of-L%E2%80%99Oreal
https://iide.co/case-studies/swot-analysis-of-loreal/#1_Strengths_of_Loreal
https://pestleanalysis.com/swot-analysis-of-loreal/
#Weaknesses_An_outcry_of_hair_and_skincare_products
https://swotandpestleanalysis.com/swot-analysis-of-loreal/

1. Competitors
L'Oréal Paris, a renowned beauty brand, offers a wide range of sunscreen products known for
their effectiveness and quality. However, the sunscreen market is highly competitive, with
several notable competitors vying for consumer attention. Here are five key competitors to
L'Oréal Paris sunscreen and the reasons why they are considered strong contenders:

1. Neutrogena: Neutrogena is a popular skincare brand recognized for its dermatologist-

recommended products. Neutrogena sunscreens have a reputation for being gentle on the
skin while providing broad-spectrum protection against harmful UVA and UVB rays. The
brand caters to various skin types and concerns, making it a strong competitor for L'Oréal
Paris.

2. Coppertone: Coppertone is a well-established sunscreen brand that has been around for
decades. It offers a wide range of sunscreen products catering to different age groups and
skin types. Coppertone is known for its water-resistant formulas and works effectively under
intense sun exposure, making it a reliable competitor for L'Oréal Paris.

3. La Roche-Posay: La Roche-Posay is a French skincare brand that focuses on developing

sunscreens specifically for sensitive skin. It is often recommended by dermatologists for its
high tolerance and hypoallergenic formulas. La Roche-Posay's commitment to advanced
skincare technology and tailored formulations makes it a strong rival to L'Oréal Paris in the
sunscreen market.
SWOT:
https://truereview.vn/kem-chong-nang-nao-tot-nhat/
https://mint07.com/dai-chien-chong-nang-la-roche-posay-anthelios-uvmune-400-vs-
loreal-uv-defender-serum-invisible-fluid/
https://www.bachhoaxanh.com/kinh-nghiem-hay/top-4-kem-chong-nang-la-roche-posay-
duoc-yeu-thich-nhat-hien-nay-1329120
Khánh Vy: https://2dep.vn/tieu-su-doi-tu-va-su-nghiep-cua-khanh-vy-
01124742.html#mcetoc_1fgau436d8
Diệp Lê: https://baosongngu.net/diep-le-la-ai-man-cau-hon-voi-ban-trai-danny-nguyen/
Chloe Nguyen: https://www.yan.vn/chloe-nguyen-la-ai-tieu-su-gia-the-cua-nu-beauty-
blogger-275422.html
Competitors: https://truereview.vn/kem-chong-nang-nao-tot-nhat/
La Roche – Posay: https://www.bachhoaxanh.com/kinh-nghiem-hay/top-4-kem-chong-
nang-la-roche-posay-duoc-yeu-thich-nhat-hien-nay-1329120