Loreal Founder Story and history of the Company (2020)

Françoise Bettencourt Meyers Loreal
Françoise Bettencourt Meyers Loreal

Loreal Company

LOreal is one of the well known French personal care company which is headquartered in Clichy, Hauts-de-Seine with a registered office in Paris. It is one of the best world’s largest cosmetics company. It has made its quality products on hair color, skincare, sun protection, make-up, perfume, and hair care.

Upon the death of her mother in September 2017, Liliane Bettencourt, who was the principal shareholder of L’oreal Company, as of 2020 Françoise Bettencourt Meyers became the majority owner of the company, with a 33.14% stake.

Introduction of Loreal Founder

Eugène Paul Louis Schueller was born on 20 March 1881 and was dead on 23 August 1957. She was a well known French pharmacist and entrepreneur who was the Founder of L’Oréal. This is the most popular world’s leading company in cosmetics and beauty. She was also one of the establishers of modern advertising.

Schueller’s had a daughter named Liliane Bettencourt, was the widow of André Bettencourt. With whom she had one daughter, Françoise Bettencourt Meyers, who is a member of L’Oréal’s board of directors. Françoise Meyers got married to Jean-Pierre Meyers. Liliane Bettencourt was the world’s wealthiest woman. In 2017, Françoise Bettencourt Meyers with a worth of  US$39.5 billion.

A Brief History of Loreal

In 1909, Eugène Paul Louis Schueller who is a very young French chemist of German descent. She developed a hair dye formula which is called Oréale. Schueller made his own products and sold them to Parisian hairdressers. In 1919, Schueller got his company registered, Safe Hair Dye Company of France. In 1920, the company hired three chemists.

Schueller financially supported and organized meetings for La Cagoule at L’Oréal headquarters. La Cagoule was one of the violent French fascist-leaning and anti-communist groups. The leader of the company formed a political party Movement Social Révolutionnaire (MSR, Social Revolutionary Movement). L’Oréal hired several numbers of employees as executives after World War II. Jacques Corrèze, who became CEO of the United States operation of L’oreal. This involvement was researched by Michael Bar-Zohar in his book, Bitter Scent.

LOréal initiated its business from the hair color,  but the company soon branched out into other cleansing and beauty products. LOréal has spread his market over 500 brands and thousands of quality products are available in all the sectors of the beauty business such as hair color, hair styling, body and skincare, cleansers, makeup, and fragrance. We can find the company’s products in a wide variety of distribution channels. Products are easily available in supermarkets, health/beauty outlets, pharmacies, and direct mail.

LOreal Acquisitions

LOréal bought Synthélabo in 1973 in order to pursue its ambitions in the pharmaceutical field. Synthélabo combined with Sanofi in 1999 to become Sanofi-Synthélabo. Sanofi-Synthélabo combined with Aventis in 2004 to become Sanofi-Aventis.

In 2006, L’Oréal owned cosmetics company The Body Shop for £562 million.


Joint ventures and minority interests 

L’Oréal had adopted 10.41% of the shares of Sanofi-Aventis. It is ranked as the world’s number three and Europe’s number one pharmaceutical company. The Laboratoires Innéov is one of the most popular joint business in nutritional cosmetics between L’Oréal and Nestlé. They draw on Nestlé’s knowledge in the related fields of nutrition and food safety.

Professional products

  • L’Oréal Technique
  • L’Oréal Professionnel, including ARTec and Innate
  • Kérastase
  • Kéraskin Esthetics
  • Matrix Essentials
  • Mizani
  • PureOlogy Research
  • Redken 5th Avenue NYC
  • Shu Uemura Art of Hair
  • Carol’s Daughter
  • Carita
  • Essie
  • Decléor
  • Botanicals Fresh Care
  • Cheryl’s Cosmeceuticals

Other acquisitions

  • In January 2014, L’Oréal declared the acquisition of major Chinese beauty brand Magic Holdings for $840 million.
  • On 11 February 2014, it was decided that L’Oreal had signed a deal worth €3.4bn to buy back 8% of its shares from Swiss consumer goods giant Nestle. Finally, Nestle’s stake in L’Oreal will be reduced from 29.4pc to 23.29pc. While the Bettencourt Meyers family’s stakeholder will increase from 30.6pc to 33.2pc. Nestle has possessed a stake in L’Oreal since 1974 when it purchased into the company at the request of Liliane Bettencourt, the daughter of the founder of L’Oreal and one of the world’s richest woman, who prevented the French state’s intervention in the company.
  • In 2014, L’Oréal acquired NYX Cosmetics announcing its makeup offer in North America.
  • In September 2014, L’Oréal declared that it had acquired Brazilian hair care company Nicely Cosmeticos Group.
  • In July 2016, L’Oréal declared it had agreed to acquire IT Cosmetics for $1.2 billion.
  • In May 2018, L’Oréal had introduced a brand-new beauty and fragrance partnership with Valentino.


L’Oréal’s first Asian-American global spokesmodel

In 2015, Soo Joo Park was declared as  L’Oréal’s first Asian-American global spokesmodel.

In 2015, Kristina Bazan was regarded as the L’Oreal’s first international e-spokesperson.

global spokesmodel Aishwarya rai miss world

Miss World 1994 and Bollywood actress Aishwarya Rai is also well known global spokesmodel of the brand since 2004.

Worldwide Marketing

Place of promotion

The Loreal group has also planned the proper strategy to do marketing worldwide. So, at their primary stage, they did the research and understand the demand and needs of their customers. This strategy would help the company in order to formulate products that suit the customers throughout the world. Because of their research and development, It mostly covers all the main parts of the world and still got the highest rating from the customers.

Promotion Strategy

Advertising is one of the best ways to improve the increasing sales of the products and it also helps especially in order to promote the new product and keep that in the mind of the public. So, It also follows this strategy through print media and multimedia. So, It also uses the actors of different ages and personalities in order to promote.

International units include:

  • L’Oréal USA – has its head office in New York City
  • L’Oréal Canada – has its headquarters in Montreal
  • L’Oréal Australia – head office in Melbourne
  • L’Oréal Nordic – head office in Copenhagen, Denmark
  • L’ORÉAL Deutschland – head office is in Düsseldorf

Corporate governance

Jean-Paul Agon is appointed as the chairman and he is also a chief executive officer Loreal. Jean-Pierre Meyers and Peter Brabeck-Letmathe are appointed as the vice-chairman of the board of directors.

Research and development facilities

LOréal has all over six worldwide research and development centers:

  • two in France: Aulnay and Chevilly;
  • one in the U.S.: Clark, New Jersey;
  • one in Japan: Kawasaki, Kanagawa Prefecture;
  • one in Shanghai, China, and one in India.

A future facility will be founded in the US in Berkeley Heights, New Jersey


From the year 1988 to 1989, LOréal has owned the control over the film company Paravision, whose properties included the Filmation and De Laurentiis libraries. StudioCanal possessed the Paravision properties in 1994.


As at year-end 2013:

  • 33.31% by the Bettencourt family
  • 23.29% by Nestlé
  • 21.8% by international institutional investors
  • 9.3% by French institutional investors
  • 5,7% by individual shareholders
  • 1.9% treasury stock

0.7% by employees.

Aims and Objectives

  • It provides the best quality product to consumers.
  • It establishes a friendly relationship and helpful towards the customer and staff also.
  • It treats everyone equally so that’s why their products available in every range.


Eugène Schueller is the company’s Founder, who was an alleged Nazi sympathizer.  LOréal also concludes that Schueller was an anti-Semitic fascist. She also became a member of La Cagoule. She also suggested a Vichy regime, and also was a violent, pro-fascist and member of the anti-communist organization. Eugène bankrolled La Cagoule and some meetings of La Cagoule were organized at L’Oréal headquarters. Some of the criminal activities perpetrated by La Cagoule such as firearms transportation, assassinating a former minister, and firebombing six synagogues.


L’oreal is one of the most famous brands all over the world and very easy to get it across the world. It also sets the fashion trend.

With the passage of time, they increase their strength and reduces their weaknesses.

The company is very much emphasis on the advertisements to keep its name and fame in the public.

Important Questions to Discuss

1.What companies does Loreal own?

  • Lancôme.
  • Giorgio Armani.
  • Yves Saint Laurent Beauté
  • Kiehl’s.
  • Ralph Lauren.
  • Shu Uemura.
  • Urban Decay.

2. Is Estee Lauder owned by L Oreal?

The quality products of  L’Oréal possess budget labels the same as  Garnier and Essie, and also as luxe names such as YSL and Lancôme. It is also the same which goes for Estée Lauder, Shiseido, P&G, and more. It has business 101, and the beauty industry is 445 billion dollars strong (and growing).

3. Is Loreal a good makeup brand?

All LOreal products are top rate. The old commercial name of the brand was “Loreal because I’m worth it.” This is owned by a French company that offers women everywhere luxury and superior quality cosmetic products at affordable prices. It is also one of the most well-known drugstore makeup products for the price.

4. Where did LOreal originate?


History of LOréal. 1907: L’Oréal founder and famous French chemist Eugène Schueller developed a hair dye called Auréole and sold it into Paris hairdressers.

5. What’s better Olay or L Oreal?

Both products are effective, for sure. Olay products are able to create positive effects much faster; though LOreal RevitaLift also gives you a pleasant and smooth feel on your skin after each and every application. Regenerist has a thicker texture and cream-like consistency.

6. Is Maybelline owned by Loreal?

L’Oréal has the most number brands on this list, with a total number of 39 beauty brands, including major staples like Lancôme, Maybelline, Urban Decay, Garnier, Essie, and The Body Shop. It has also owned some of the expensive skin-care and hair-care brands, such as  Pureology, La Roche-Posay, and SkinCeuticals.

7. Is L’Oréal owned by Lancome?

Makeup is one of the places wherein you can definitely save. Since many of the major cosmetics companies are possessed by the same parent company. L’Oreal possesses Lancome, Maybelline, and Garnier; Estee Lauder possesses not only Mac, Clinique, and Bobbi Brown but also some of the cheaper brands sold at Kohl’s which are Flirt1 and American Beauty.

8. Is Loreal better than Maybelline?

The main thing with both makeup brands is that they both acquire their hits and misses. For example, L’oreal is more expensive than Maybelline. Their quality is also pretty better, but some of the products made by Maybelline are either really good or really bad or average.


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