Core Insights - L'Oréal is undergoing significant executive changes aimed at strengthening its leadership in key markets, particularly the U.S. and Asia-Pacific, to sustain business growth and enhance digital transformation [1][3][26] Group 1: Executive Changes - L'Oréal announced multiple personnel changes within its executive committee, effective January 1, 2026, with transitions starting from October 1, 2025 [1][4] - The adjustments involve six key positions, primarily through internal promotions or cross-assignments, affecting regions such as North America, Europe, and Hong Kong [4][15] - David Greenberg has been appointed as the new Chairman of L'Oréal USA, emphasizing the importance of the U.S. market for future growth [7][10] Group 2: Market Focus - The company aims to enhance its leadership in the U.S. market through a dual management structure, with Greenberg collaborating with the CEO of L'Oréal USA [7][10] - L'Oréal is also focusing on expanding its travel retail business in the Asia-Pacific region, with Eva Yu appointed as the new Travel Retail President [19][21] Group 3: Performance Context - L'Oréal's sales for the first half of 2025 reached €22.473 billion (approximately ¥186.46 billion), showing a slight year-on-year increase of 1.6% [22][30] - The North American market, however, has shown slow growth, with a year-on-year increase of only 0.4%, indicating potential challenges in this key region [23][26] Group 4: Industry Trends - The executive reshuffling at L'Oréal reflects a broader trend in the beauty industry, with other major companies like Estée Lauder and Shiseido also announcing significant personnel changes amid ongoing market pressures [30]

Core Insights - L'Oréal plans to discontinue the Gowoonsesang Cosmetics business acquired last year, focusing solely on the Dr.G brand [1][9] - The decision affects all Gowoonsesang brands except Dr.G, including the makeup brand Healus and the vegan brand Vivid Draw [3][9] Brand Focus - Healus, launched in February 2024, is a makeup brand that aimed to promote comfortable and healthy beauty [4][6] - The brand has been operational for less than two years before being discontinued [6] Acquisition Context - L'Oréal announced the acquisition of Gowoonsesang Cosmetics in December last year, and the focus on Dr.G comes less than a year after the acquisition [7][9] - The business line will be renamed to "L'Oréal Korea–Dr.G," simplifying the brand identity [9] Strategic Implications - L'Oréal's decision to focus on Dr.G aligns with its broader strategy of streamlining operations and concentrating on brands with the highest growth potential [10][13] - The company has previously shown a preference for Dr.G in its communications regarding the acquisition [10] Market Trends - The trend of discontinuing non-core brands is not unique to L'Oréal, as other major beauty companies like Unilever and Kao have also announced brand closures amid increasing competition and economic pressures [16]

Core Viewpoint - The news reports that L'Oréal's acquisition of Stylenanda and its brand 3CE is facing challenges, including layoffs and speculation about exiting the South Korean market, although L'Oréal denies these claims [1][3][9]. Group 1: Company Performance and Strategy - Stylenanda initiated a voluntary retirement plan for employees related to the 3CE brand, indicating a contraction in its beauty segment after exiting the clothing business in 2024 [3][9]. - 3CE's revenue peaked in 2019 at 269.5 billion KRW (approximately 1.4 billion RMB), but has seen a steady decline in revenue from 2020 to 2024 [7][9]. - L'Oréal's official statement claims that 3CE has achieved double-digit growth in the South Korean market for three consecutive years, contradicting reports of its decline [9][23]. Group 2: Market Position and Competition - 3CE is reported to be the number one Korean beauty brand globally in 2023 and 2024, despite challenges in the South Korean market [10][23]. - The brand has expanded its presence in Southeast Asia and plans to re-enter the Japanese market in fall 2024, indicating a strategy to diversify its market presence [10][23]. - The competitive landscape in South Korea has intensified, with local brands gaining market share, which may impact 3CE's performance [20][23]. Group 3: Historical Context and Future Outlook - L'Oréal acquired Stylenanda in 2018 for approximately 400 billion KRW (about 2.1 billion RMB), but the exact ownership structure remains somewhat unclear [22][23]. - Previous exits of other L'Oréal brands from the South Korean market, such as Maybelline and Shu Uemura, raise concerns about the sustainability of international brands in this market [15][18]. - The future trajectory of 3CE will depend on L'Oréal's strategic decisions and its ability to adapt to changing consumer preferences and market dynamics [23].