Innovation has been and remains the core of the L'Oréal model: the Group was born from a breakthrough innovation - safe hair dye invented by its founder Eugène Schueller. L'Oréal believes that beauty happens when science and creativity come together to meet the needs of consumers who aspire to new experiences through new products and innovative services. The discoveries of R&I, as well as the unique intuition and creativity of the marketing teams, mean that products are constantly evolving to meet consumers' needs. Because L'Oréal records a significant share of its sales with new product launches every year, the Group has a duty to be the champion of cosmetics innovation.
The beauty of the future is now focused on the Green Sciences programme on the one hand, which covers all the scientific fields on which R&I relies to achieve L'Oréal's objectives in terms of the preservation of natural resources and biodiversity, and on Beauty Tech on the other hand, which seeks to invent the beauty of the future against the backdrop of this century’s technological revolutions. Innovation is at the heart of the model and, coupled with technology, is a driving force for growth and discovery of new areas of beauty. Data, artificial intelligence, robotics and nanotechnologies will strengthen and speed up the Group's innovations to help make it a champion of Beauty Tech. L'Oréal also draws on some of the biggest strategic data partnerships, most notably with IBM, to elevate the Group’s extensive scientific knowledge base. In 2025, L'Oréal was named “Europe's Most Innovative Company" across all sectors by Fortune 500 magazine.
L'Oréal's leadership in Beauty Tech has enabled it to capitalize on the AI revolution, which is radically reshaping consumer interaction models. Artificial intelligence is also used by employees to increase the capabilities of L'Oréal's various businesses (see section 1.3.5).
L'Oréal invents the beauty of the future while becoming the company of the future (see also "Leveraging Beauty Tech and digital technology to create the beauty of the future” in section 1.3.4.2).
Over the next decade, the beauty market will become more digital and more competitive, with the rise of numerous independent local (“indie”) brands benefiting from easy access to social networks on the one hand, and the ramp-up of traditional players in the Luxe sector or companies at the intersection of pharmaceuticals and beauty on the other. In this context, L'Oréal's expertise and excellence in creating and developing major brands that are prized by consumers all over the world are essential assets. L'Oréal has always been able to create star products, from brand-new franchise launches to innovations that evolve into "icons" over time. The ability of the marketing departments for our brands and R&I laboratories to innovate is a key asset in the collaborative, agile design of new products, services and unique consumer experiences.
L'Oréal's global footprint enables it to optimise its growth by continuously adapting to the context it faces, seize opportunities as they arise and minimise exposure to areas where business is slower. In terms of Regions, Europe remains the historic cradle of the Group's business, and the nerve centre of its operations. North America, currently the world's largest beauty market, is boosted by its demographics, increasing ethnic diversity and therefore expectations of beauty, and the ongoing acceleration of e-commerce. In North Asia, China, where market conditions are gradually stabilising, will remain a major contributor to Group sales, with its consumers representing a significant source of growth for the long term. Emerging markets represent a major accelerator for the Group, with a rapidly growing population and current trends of urbanisation, digitalisation and empowerment of women (see also section 1.3.3.1 "Geographic expansion").
The Group's four Divisions enable it to meet all consumer expectations. The Group’s first Division, Consumer Products, aims to give the best of beauty a more premium feel while also making it accessible to more people. It is the Group's main asset in its attempts to conquer emerging markets. The Luxe Division responds to the desire for quality and experiences in the upper-middle classes. Dermatological Beauty meets increasingly high expectations in terms of skincare drawing on its unrivalled network of dermatologists and healthcare professionals. Lastly, Professional Products enhances the sophistication of the market and the salon sector as well as L’Oréal’s reputation across the globe.
Economic and financial performance is not enough for L'Oréal. Because there will be no economic growth without sustainability in the future, L'Oréal has set itself the dual goal of excellence in both the economic and societal domains. It will be the condition for its success and its staying power. It is because L'Oréal is committed to environmental, societal and ethical performance that it will be even more resilient in the future. The two performances go hand in hand and mutually enhance each other, as L'Oréal has demonstrated to date.
As the Group’s founder, Eugène Schueller, declared with conviction: "A company is not walls and machines, but people, people and more people." In keeping with the tradition of our founder, individuals and social cohesion are at the heart of L'Oréal and must remain our priority in a climate where attracting talent is becoming increasingly complex. The Group's values have always been humanist in nature. In entrepreneurial culture, passionate and committed teams are strategic intangible assets that always make - and will always make - all the difference.
