Because You're Worth It

The multi-facited brand that reminds women everywhere that they're worth it has been on a steady track to reinvent their image for 2009. In a WWD article by Jennifer Weil, the mega-brand is planning several upcoming changes for the company, including "up[ping] its advertising outlay while at the same time cutting its number of stockkeeping units, introducing lower-priced items, implementing a hiring freeze in certain markets and focusing on innovative products."

L’Oréal's CEO Jean-Paul Agon hopes that by incorporating these changes to the company, they will grow faster this year than other cosmetic brands. Like many companies, L’Oréal faces adversity in 2008, "with a slowdown in markets and also inventory reductions by our distributor customers who themselves were subjected to very difficult financial pressures."

North America seems to be a tough market for the company; even though mass market succeeded very well, the U.S. specifically was slightly sluggish. For 2009, the company hopes to accelerate their advertising campaign.

As for the new, innovative products, several items are in the works. For example, Lancôme’s new Oscillation mascara, which Agon hopes will "add another way the firm is adapting to the current crisis is by introducing more accessibly priced products to brands such as Garnier, L’Oréal Paris and Vichy, in order to reach a wider audience."

Overall, L’Oréal is optimistic about 2009. The more affordable items will most likely be their biggest help, but only time will tell.