2024年对于欧莱雅来说应该是倍感压力的一年，特别是在中国市场。 从2024年全年业绩报告来看，欧莱雅实现销售额434.8亿欧元，同比增长5.1%，创下销售额新高；实现营业利润86.88亿欧元，同比增长6.7%，营业利润率则 达到了20%。 实际上从最近几年来看，欧莱雅在中国市场的地位逐渐被撼动，业绩增速也呈现放缓趋势。在2019年-2021年，欧莱雅中国市场增速在20%以上，但是从 2022年开始出现断崖式下滑，2022年-2023年仅实现低个位数增长。 到了2024年，第一季度表现尚可，第二季度便开始呈现负增长状态，接下来的第三季度、第四季度也无法扭转颓势。财报中将北亚市场中国大陆美容市场增 长为负归因为受选择性渠道疲软、旅游零售销售压力等因素影响。 就欧莱雅在中国市场的业务布局来看，主要是大众化妆品和高端化妆品贡献大部分营收。其中，大众化妆品以巴黎欧莱雅品牌为代表，高端化妆品则包括兰 蔻、赫莲娜、YSL、理肤泉、修丽可等。 近些年来欧莱雅在中国市场表现不佳，也要归因为大众化妆品的增长缓慢以及高端化妆品的消费乏力。 首先就大众化妆品而言，在中国市场正面临激烈的竞争。一方面本土护肤品牌逐渐崛起，再加上国内消 ...

Group 1 - L'Oréal Group announced the acquisition of an additional 10% stake in Galderma, increasing its ownership from 10% to 20%, indicating a strategic focus on the aesthetic and medical beauty market [1][2] - The acquisition is expected to be completed in the first quarter of 2026, with plans to nominate two non-independent directors from L'Oréal to Galderma's board [2] - L'Oréal's recent investments include a €4 billion acquisition of luxury beauty licenses from Kering Group, reflecting a strong recovery in its performance, particularly in the North Asia region [3] Group 2 - Unilever is undergoing a restructuring process, focusing on core businesses by divesting non-core brands, including the planned spin-off of its ice cream business [4][5] - Unilever's CEO emphasized that the spin-off aims to create a more streamlined company, concentrating on beauty and personal care sectors for higher profit margins [5] - The contrasting strategies of L'Oréal's acquisitions and Unilever's divestitures reflect a broader industry trend of resource concentration on core business areas [5][6] Group 3 - Estee Lauder is also considering divesting its Korean beauty brand Dr. Jart+ and has previously planned to sell Too Faced and Smashbox, indicating a trend of brand portfolio optimization among major beauty companies [6] - Domestic brands are also pursuing acquisitions to build their brand portfolios, as seen with Perfect Diary's parent company acquiring high-end skincare brands [6] - An ideal brand matrix in the beauty industry should exhibit strategic synergy, growth gradient, and profit orientation to withstand market fluctuations [7]

Core Insights - The two major beauty groups, L'Oréal and Unilever, are pursuing different strategies, with L'Oréal focusing on acquisitions while Unilever is divesting non-core assets [2][4]. Group 1: L'Oréal's Acquisition Strategy - L'Oréal announced the acquisition of an additional 10% stake in Galderma, increasing its ownership from 10% to 20%, with plans to explore further scientific research projects together [1][2]. - The acquisition is part of L'Oréal's ambition to enter the rapidly growing medical aesthetics market, alongside its investments in high-end and clean beauty segments [2][3]. - In October, L'Oréal spent €4 billion to acquire beauty licenses from Kering Group, indicating a strong partnership and capability to enhance luxury brands [3]. - L'Oréal's investments in China include a stake in Naturgy and further investments in local skincare brands, reflecting its strategy to accelerate brand innovation and consumer attraction [3]. Group 2: Unilever's Divestment Strategy - Unilever is undergoing a restructuring process to focus on core businesses, highlighted by the planned spin-off of its ice cream division, expected to be completed by Q4 2025 [1][5]. - The CEO of Unilever emphasized that the spin-off will create a more streamlined company, concentrating on beauty, health, and personal care sectors for higher profit margins [5]. - Unilever's recent quarterly performance showed improvement after excluding the ice cream business, indicating a positive trend in its core operations [5]. Group 3: Industry Trends and Brand Matrix - The contrasting strategies of L'Oréal and Unilever reflect a broader industry trend where companies are either expanding their brand portfolios or optimizing them by shedding non-core assets [6][7]. - The ideal brand matrix should exhibit strategic synergy, growth gradient, and profit orientation, allowing companies to withstand market fluctuations [7].

Core Viewpoint - L'Oréal's third-quarter revenue increased by 3.4% year-on-year, with North Asia, including China, growing by 4.7%, surpassing analyst expectations of 3.2% [3] Revenue Performance - The mass cosmetics segment showed the lowest growth at 0.4%, while luxury beauty and professional hair care grew by 1.5% and 1.1%, respectively. The skin science beauty segment led with a growth rate of 6.1%, although this growth has noticeably slowed [4] - In China, all segments except mass cosmetics achieved growth exceeding market levels, with notable performances from brands like Lancôme, Helena Rubinstein, and YSL [4] Strategic Acquisition - L'Oréal announced a €4 billion acquisition of Kering's beauty business, which includes the luxury perfume brand Creed and the fragrance rights for Balenciaga and Bottega Veneta [4][5] - This acquisition is seen as a significant move for L'Oréal in the high-end fragrance market, which is expected to enhance its market share in this segment from 13.7% to potentially 19.7% [5] Market Dynamics - The luxury beauty sector remains competitive, with L'Oréal's luxury division still showing growth despite overall high-end consumption slowing down [4][5] - The global fragrance market's annual sales growth has slowed from 13% last year to 11% this year, with high-end fragrances experiencing a more pronounced slowdown [6] Challenges Ahead - The Gucci fragrance business, currently licensed to Coty until 2028, poses a challenge as L'Oréal will need to invest significantly to reshape the brand's image upon acquisition [6][7] - Creed, while a promising asset, currently generates approximately $400 million in annual sales, indicating that L'Oréal will need to invest heavily to expand the sales network for Creed and the other brands acquired [7]

Summary of L'Oréal Conference Call Company Overview - L'Oréal has expanded into the cosmetics and skincare market through a series of acquisitions, including Lancôme, Helena Rubinstein, and Maybelline, forming four main product lines: professional products, consumer products, luxury products, and dermatological products [2][3][4] Key Insights - **Growth Performance**: Over the past decade, L'Oréal's consumer products have seen slow growth at approximately 4% annually, while professional care (dermatological) products have grown at 16%, and luxury products have approached 10% annual growth. This has led to an increase in gross margin from around 70% to 74%-75% [2][6][7] - **Research and Development**: L'Oréal maintains a consistent R&D expenditure rate of about 3%, spending approximately €1.3-1.4 billion (over 10 billion RMB) annually, which supports innovation and enhances overall gross sales margin [2][8][9] - **Market Dynamics**: In the first half of 2025, the European and American markets faced pressure, particularly in North America, while the Asia-Pacific region showed signs of recovery, with China achieving a positive growth rate of 3% [2][12] - **E-commerce Growth**: The share of online sales increased from 5% in 2015 to 28% in 2023, stabilizing since 2021. Offline counters have performed well, crucial for brand positioning and recognition [2][13] Additional Important Points - **Acquisition Strategy**: L'Oréal's annual acquisitions are a key growth strategy, allowing for business expansion and product matrix enhancement. Without acquisitions, the company would maintain a 7% annual growth in the European and American markets [2][11] - **Market Potential in China**: The global cosmetics market is approximately €250 billion (around 2 trillion RMB), with China's market size reaching 300-400 billion RMB. L'Oréal's Paris brand is the largest in China, valued at about 15 billion RMB [18][19] - **Competitive Landscape**: Chinese cosmetics brands have strong potential in international markets, particularly in Southeast Asia, Japan, South Korea, and Europe, but they lag in R&D investment compared to established brands [20] - **Long-term Valuation**: L'Oréal's high valuation is attributed to its global consumer goods positioning, continuous R&D investment, and successful acquisitions that adapt to local consumer needs [16] Conclusion L'Oréal's strategic focus on R&D, acquisitions, and market adaptation has positioned it well in the competitive cosmetics landscape, particularly in emerging markets like China, while maintaining robust growth in professional and luxury segments.