Each year, brand valuation consultancy Brand Finance analyzes 5,000 of the world’s leading brands and publishes more than 100 reports, ranking brands by their valuations across all sectors and countries. For this new report, L’Oréal is unsurprisingly in first place.
Brand Finance, the brand valuation consultancy, recently released its Cosmetics 50 report, an annual ranking of the world’s most valued cosmetics companies. And for this new report, L’Oreal tops the list, with a value up 7% to $12 billion. The beauty leader is followed by Estée Lauder and Nivea, which respectively took the second and third place. The top 3 remain unchanged from the previous year.
Estée Lauder has made a spectacular rise from fifth to second place in the space of three years, with a value of 7.2 billion dollars.
Still in the luxury segment, the brands Guerlain (LVMH) and Lancôme (L’Oréal Luxe) are in the Top 10 of the Cosmetics 50 this year, with a valuation of 6.3 billion dollars and 5.2 billion dollars respectively. While Lancôme has made a strong comeback after being outside the Top 10 in 2021, the brand is now in seventh place. Guerlain, on the other hand, despite an enviable sixth place, is experiencing a continuous fall in the ranking year after year, having dropped from fourth place in 2021 to sixth place this year.
“L’Oréal is once again at the top of the rankings and [Nicolas] Hieronimus has an ambitious and strategic vision for the future of the giant. The brand should continue to prioritize innovation, sustainability and digital transformation as it continues to expand its influence around the world in the years ahead”, commented Annie Brown, managing director of Brand Finance.
According to her, 2022 saw a laundry list of macroeconomic and political events – such as Covid restrictions, conflict in Ukraine, and social tensions born of inflation – that would have been destabilizing to a cosmetics brand’s smooth operation.
“The only thing that didn’t have a direct impact on the chart was the Russian invasion, because we’ve never historically had Russian brands in the ranking”, she explains. “China’s blocking has definitely had an impact. While it is easing, it has had an influence on the share of retail sales versus online sales – and in such a large market, that will have an impact.”
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- Estée Lauder
L’Oréal, one of the world’s most popular and well-known cosmetics brands, operates in more than 150 countries and has a global portfolio of over 30 brands. Following the appointment of Nicolas Hieronimus as its new CEO in 2021, L’Oréal has also increased its efforts in digital transformation and sustainability.
Brand Finance concluded in its analysis that L’Oréal’s popularity has increased significantly due to the company’s increased online presence and digital marketing strategies. Indeed, L’Oréal has leveraged its huge social media following, tallying more than 10 million followers on Instagram and 438,000 on TikTok, by producing compelling content hosted by popular influencers. This approach has increased brand awareness among young consumers.
In addition, L’Oréal boasts a constantly evolving line of innovative products. In 2023, the company showcased two technology prototypes at CES 2023. The first, HAPTA, is a makeup applicator launched via Lancôme designed for people with limited hand and arm mobility. This beauty device includes a motion stabilizer managed by artificial intelligence. The second, called L’Oréal Brow Magic, is an electronic eyebrow makeup applicator developed with Prinker, an innovative company that pioneered non-permanent tattoos – which allows users to achieve a customized look in seconds. Backed by L’Oréal’s proprietary Modiface skin diagnostic technology, customers can benefit from multiple recommendations, including shading and filling. These innovations demonstrate L’Oréal’s commitment to research and development of new products to meet consumer needs.
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Featured photo : © L’Oréal