Aligning People, Organization, and Strategy at L'Oréal Luxe

By Joshua Tierney, MBA in International Luxury Brand Management 2015-2016, United States

Paris, France – L'Oréal Luxe hosted the M.B.A. in International Luxury Brand Management students from ESSEC Business School at their corporate office on Monday evening.  Julia Frobert, International Talent Acquisition Director for L’Oréal Luxe, and Loïc Berjoan, International Talent Acquisition Manager for Retail, welcomed the students in the company’s well-appointed amphitheater.  The information session introduced the future managers to the world of L'Oréal Luxe, including its history, organizational structure, and vision for the future.  The diverse portfolio of L’Oréal Luxe includes historic beauty brands, “new luxury” alternative brands, and fashion brands.  Rémi Lugagne, Global Human Resources Director for the L’Oréal Luxe division, led an interactive presentation, encouraging the students to engage in discussion.  Mr. Lugagne described the division’s “Glocal” approach to international business – combining global thinking with sensitivity to local markets.  He went on to emphasize the importance of innovation and deviation from the norm, as illustrated through the culture de l’ecart, or “twist culture” of the division.  After all, stated Mr. Lugagne, “Luxury is always a twist.”

In continuation, Mr. Lugagne proceeded to outline the competitive landscape of the global luxury beauty industry.  L'Oréal Luxe is currently the world’s number two beauty conglomerate, having generated 6.198 billion euros in revenue in 2014.  Only Estée Lauder, the lead competitor of L'Oréal, surpassed the company – reporting a 9.646 billion euros turnover in the same time period.  In addition, another formidable competitor is the beauty division of LVMH Moët Hennessy -
 Louis Vuitton, the world’s largest luxury conglomerate, which followed close behind with a 3.916 billion euros turnover in 2014.  Mr. Lugagne went on to define the growth strategy of L'Oréal Luxe: to become the number one luxury beauty group in terms of size, profitability, and quality.  In his role at the company, Mr. Lugagne’s primary function is to align people, the organization, and strategy.  Finally, Mr. Lugagne went on to highlight the key capacities necessary for a thriving career at L'Oréal Luxe.  Core competencies include understanding brands and customers, mastering luxury skills, building management capability, and of course – being successful.