L’Oreal’s vegan roots are showing
L’Oreal’s founding goes back more than a hundred years, when a chemist developed safer, more natural looking hair dyes. Now, it’s returning to its roots with a range of fully plant-based colours, meeting consumers’ demand for more natural products.
L’Oreal, which is the dominant force in global hair-care, debuted the new dye – Botanea – on Wednesday. The company is hoping that it will boost the professional-products unit, which has been its slowest grower for seven consecutive quarters. This is partially the result a surge in popularity for aging gracefully and letting your grey hairs show, and it’s partly a result of increasing concerns over the impact of hair colouring, both on hair and the environment.
L’Oreal’s share price has appreciated by 11% year to date
SOURCE: Yahoo Finance
Marion Brunet, head of the L’Oreal Professional brand, spome to the company’s success at creating Botanea, saying “We’ve managed to marry naturalness with a professional result without compromising on either point.” She describes it as a breakthrough, because previous attempts at using natural-only ingredients in hair dyes have resulted in a limited palette of muted colours.
L’Oreal currently owns about a third of the $11 billion global hair colour market, and going au natural in its latest hair dyes might help push that market share even further. The company will certainly be hoping that it can add some bigger growth figures to its most troubled segment. Nicolaus Jouan, a Euromonitor analyst, sees it as a lucrative, but uncertain, possibility. He said: “Natural beauty is enjoying a strong growth, as major brands obviously try to seize the trend, but the lack of a clear definition makes it difficult to quantify.”
Dominion holds L’Oreal in its Global Trends Luxury Fund.
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