The French cosmetics giant, L'Oréal, has more than 20 major brands under its fold, many of which have overlapping product ranges. In India too, L'Oréal offers around a dozen of its brands. While having competing brands in the same category, L'Oréal positions them distinctly so that together, they reach a wide range of target customers having diverse needs and expectations. In addition, L'Oréal moderates the positioning of its brands to suit local socioeconomic and cultural contexts in specific countries.

In recent years, India has seen an upsurge in demand for cosmetic products as a result of increase in purchasing power and fashion consciousness among consumers. The Indian cosmetics industry is poised to grow at a compounded annual growth rate of around 7% during 2009 to 2012. The entry of global players, such as Shiseido, Revlon and several others targeting the growing middle-class segment, is driving the growth of the Indian cosmetics industry.

L'Oréal entered the Indian market in 1991 through a joint venture with the MJ Group and introduced the Garnier Ultra Doux range of hair-care products. With the brand being widely accepted by Indian consumers, the company formed its own Indian subsidiary in 1994. It established a manufacturing plant in Pune in 2004. L'Oréal reported a turnover of Rs. 600 cr in the Indian market during 2007.

L'Oréal India targets customers by providing an extensive array of products that meet a wide diversity in preferences and spending power, in contrast with Hindustan Unilever Limited (Unilever's Indian subsidiary) which concentrates on providing cosmetics and hair care products (under Lakme, Sunsilk, Dove and other brands) at mid-range prices. Exhibit 1 presents summarized information on the brands offered by L'Oréal in the Indian market, their positioning and distribution channels.

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