Core Insights - L'Oréal is aggressively reshaping the beauty industry landscape through significant capital operations, including a €4 billion acquisition of Kering's beauty business and securing a 50-year beauty license for Gucci, Balenciaga, and Bottega Veneta [1][2] - The CEO has indicated readiness to negotiate the acquisition of the Armani brand, signaling a dual strategy of "licensing + acquisition" to intensify competition against rivals like Estée Lauder [1][4] Group 1: Strategic Acquisition - The €4 billion deal with Kering includes the outright purchase of the high-end niche fragrance brand Creed and a 50-year beauty license for Gucci, Bottega Veneta, and Balenciaga, alongside exploring new opportunities in health and longevity sciences [2] - The transaction is expected to be completed in the first half of 2026, with L'Oréal also required to pay royalties to Kering, positioning L'Oréal to lead in the high-growth niche fragrance market [2] Group 2: Financial Performance - L'Oréal's recent financial report shows a sales figure of €32.8 billion for the first three quarters of 2025, reflecting a year-on-year growth of 3.4%, with a notable acceleration to 4.9% in the third quarter [3] - The North Asia region has achieved its first positive growth in two years, with the Chinese mainland market showing single-digit growth in the third quarter, driven by the recovery of premium cosmetics and innovative products from brands like Lancôme and Helena Rubinstein [3] Group 3: Competitive Strategy - L'Oréal's strategic moves clearly demonstrate its ambition to compete with Estée Lauder, particularly in light of Estée Lauder's $2.8 billion acquisition of Tom Ford's entire business [4] - L'Oréal employs a flexible long-term licensing model for luxury brands like Gucci, allowing it to leverage their influence without the operational burden of fashion business management [4] Group 4: Industry Expansion - The collaboration between L'Oréal and Kering signifies a broader competitive landscape in the beauty industry, extending beyond traditional cosmetics into the health and longevity sectors [5] - L'Oréal's latest financial report highlights double-digit growth in online channels and strong performance in hair care and fragrance categories, indicating a focus on high-growth segments and digital channels [7] - The competition among beauty giants is evolving beyond product offerings to encompass brand matrices, channel innovation, and future technologies, intensifying the battle for market positioning [7]