Professional. Products. L Oréal Professionnel. Kérastase. Redken. Matrix L ORÉAL
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3 Professional Products L Oréal Professionnel Kérastase Redken Matrix L ORÉAL Annual Report
4 The new KÉRASTASE Institute in France, symbolising the brand s professional luxury positioning. Consolidated sales by geographic zone % of 2003 Like-for-like millions sales growth 2003/02 Western Europe % 5.3% North America % 10.7% Rest of the World % 15.3% Total 1, , % 8.6% Consolidated sales by business segment % of 2003 Like-for-like millions sales growth 2003/02 Colourants % 7.9% Styling and waves % 2.8% Shampoos and haircare % 12.3% Total 1, , % 8.6% After several years of rapid growth, the Professional Products Division has continued to win market share in all parts of the world. In 2003 it maintained a high growth rate: its sales progressed by 8.6% on a like-for-like basis. In North America, the Division achieved growth of 10.7%, thanks largely to the substantial market share gains in this zone. In Western Europe, the growth rate was 5.3%. In the rest of the world, growth reached 15.3%. The Division performed particularly well in Eastern Europe. Jean-Jacques Lebel, President Professional Products 26
5 PROFESSIONAL PRODUCTS Partnership with hairdressers the world over The Professional Products Division boasts a portfolio of unique and complementary brands. Whatever the degree of maturity of the local professional products market, the Division can meet the needs of every type of hair salon the world over. Its hair colourants and its styling, texture and haircare products are specially designed to meet all hairdressers expectations. CHALLENGES AND GROWTH STRATEGY The growth strategy of the Professional Products Division is to speed up the globalisation of its brands by focussing on high growth areas, in particular Asia and Eastern Europe. The launch of MATRIX in Eastern Europe in 2003 reflected this strategy. It was a decisive step in the roll-out of this brand, which originated in the United States, offering hairdressers a range of affordable professional products with a very broad distribution among salons. The Division will also grow through the creation of new services, not only in colourants and texture, but also in haircare and styling. The growth potential in salon sales of products for home use is considerable. The Division is particularly sensitive to the need to create different kinds of partnerships, and so to contribute to the development of all categories of hair salon highlights The launch of Luo Color colourant by L ORÉAL PROFESSIONNEL, with fresh, light colours to appeal to a new category of consumers. Consolidation of L ORÉAL PROFESSIONNEL in the United States following the successful integration of the Artec lines. The Division s expansion in Eastern Europe moved up a gear, particularly with the launch of MATRIX aimed at boosting sales in low-cost salons. L ORÉAL Annual Report
6 ACTIVITY AND DEVELOPMENTS IN 2003 L Oréal Professionnel The partner brand of the world s leading hairdressers continued to expand at twice the rate of the professional products market. The brand s innovations made a direct contribution to increasing the number of regular hair salon customers: the original and fresh colours of Luo Color colourants immediately proved highly successful on their launch in Europe. The launch broadened the brand s distribution in prestige salons, Equa colourants, specially formulated for Japanese hair, won over the country s top salon colourant specialists, the Série Expert haircare range continued its international expansion with spectacular success, particularly in Japan and the United States, the successful integration of Artec products into the L Oréal Professionnel USA range made of the brand one of the major players on the American market, the Dream, Excel, Succeed programme is now recognised by professionals all over the world as the benchmark for hairdresser training. Kérastase KÉRASTASE confirmed its leading position in It strengthened its image as the institute haircare brand for salon use and for sale, and consolidated its professional luxury positioning. 28
7 Its 11% sales growth reflected three major successes: an increasing rate of globalisation with strong performances in the United States (up 70%), in Eastern Europe (up 41%), in Asia and Japan (up 25%), the success of innovative products with the launch of: - Age-Recharge, a deep treatment mask that improves hair body, and which demonstrates the brand s expertise in a new sector, - the Nutri-Sculpt range, used for styling effects and shine, unlocking new potential for the brand s customer base, the creation of institute counters for hairdressers who have remained faithful to the brand is a tangible result of the changing image of KÉRASTASE. PROFESSIONAL PRODUCTS Redken This brand, which draws its creative inspiration from New York, achieved growth of 9.1% in REDKEN very substantially increased its market share in the United States, consolidating its number two position. Growth was confirmed by the launch of a haircare range featuring Deep Fuel, which embodies a new concept of singledose restructuring haircare. Chemistry System, a special salon-only personalised haircare programme, with concentrated active ingredients exclusive to the REDKEN brand, proved highly successful. Color Fusion colourants continued to achieve double-digit growth worldwide, with the launch of new red shades and the brand s growing success in appealing to new categories of customer. In the United States, the REDKEN Symposium was attended by over 11,000 hairdressers from many countries, who received training in new REDKEN techniques. Matrix MATRIX turned in an excellent performance in the United States, with its affordable product lines and services aimed at low-cost salons. The pace of the brand s globalisation increased with the launch of a comprehensive range of products in several East European countries. Colourant sales increased strongly, thanks in particular to: Color Sync, a new dual-tone hair colour product featuring a ceramide conditioning and restructuring complex, Socolor Beauty, a new colourant giving the hair added shine and producing lasting results. The Trix range gave the brand a strong position in the creative styling sector, an area that is extremely popular with young people outlook In 2004, the Division s brand portfolio and product innovations will add further breadth to the international extension of its partnership with hairdressers and its presence in all types of salons. The growing popularity of the MATRIX brand in new geographic areas will have a positive impact on the Division s growth. Increased investment in professional training will contribute to the sustainable development of the distribution channel with which our brands are closely associated. L ORÉAL Annual Report
L Oréal Annual Report 2002 L ORÉAL PROFESSIONNEL KÉRASTASE MATRIX REDKEN PROFESSIONAL PRODUCTS
26 L Oréal Annual Report 2002 L ORÉAL PROFESSIONNEL KÉRASTASE MATRIX REDKEN PROFESSIONAL PRODUCTS 27 PARTNERSHIP WITH HAIRDRESSERS ALL OVER THE WORLD The Professional Products Division boasts a portfolio
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