L'Oréal, global leader in cosmetics, a billionaire family

L'Oréal, global leader in cosmetics, a billionaire family

The L'Oréal Group, a name familiar to women and men around the world. This company, whose headquarters are relatively modest given its international importance, has a history tied to two men. First, its founder, Eugène Schueller, and François Dalle, his successor.

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Eugène Schueller and the origins of the L'Oréal Group

Eugène Schueller, a young French chemist of Alsatian origin born in 1881. He graduated from the Institut de Chimie Appliquée de Paris in 1904. On November 14, 1907, he filed a patent with the Office National de la Propriété Industrielle for a hair dye process.

At the time, he worked as a preparator at the Sorbonne under the direction of Professor Victor Auger, advisor to the Pharmacie Centrale de France. He was the only one to volunteer to conduct research on a completely harmless hair dye to conceal white hair. At the time, these “dyes” were based on hydrogen peroxide. This problem would shape his destiny for the rest of his life.

He developed a dye formula that provided lasting coverage of white hair. It was made from potato starch.

Eugène Schueller resigned in January 1908. He founded his own company and set up shop in a two-room apartment at 3, rue d’Alger, in the 1st arrondissement of Paris. This space served as both an office and an exhibition salon. But the expected success did not materialize.

The financial contribution of André Spéry

André Spéry, an accountant from Épernay and employee of the Cusenier spirits company, contributed his inheritance of 25,000 francs.

On July 30, 1909, the French company for harmless hair dyes was established as a simple partnership. It set up shop at 7 bis, rue du Louvre, in the 1st arrondissement of Paris. They hired a representative and a demonstrator, a former hairdresser at the Imperial Court of Russia.

The company founded by Eugène Schueller was now underway. Its first issue of La Coiffure de Paris (a publication for hairdressers) was published in October-November 1909.

The historic headquarters of the L'Oréal Group, 14 rue Royale in Paris

The historic headquarters of the L'Oréal Group since 1938, renamed "Le Visionnaire" upon its reopening in 2023. 14 rue Royale, just a stone’s throw from the Place de la Concorde, is a place steeped in history.

It is located at the corner of rue Saint-Honoré. It once housed a branch of Crédit Lyonnais, present here since at least 1910. But before that, in the late 19th century, it was home to a cabaret called La Porte Saint-Honoré. Its name comes from the old gate in the Louis XIII city walls, which stood on this site and was demolished in 1733.

Physiologist Claude Bernard lived here in 1859.

Today, it serves as the headquarters of L'Oréal, established at this address by Eugène Schueller in 1938. The company occupies the entire complex at 14 rue Royale, extending to rue Saint-Florentin at the rear and running parallel to rue Royale.

The building itself is one of the masterpieces of 18th-century French architecture, designed by architect Ange-Jacques Gabriel. Its façade and roof are listed as historic monuments.

Inspired by the vision of François Dalle, L'Oréal's CEO between 1948 and 1984, 14 rue Royale has retained the spirit of a workshop and a “bivouac.” It is here, for over 80 years, that the care and beauty products that sometimes revolutionized our daily lives were conceived.

The hairdressing sector, the cradle of L'Oréal's original business, will once again take center stage with over 750 square meters of space. It features a highly digitalized, hybrid and agile training zone, delivering cutting-edge expertise and a unique experience.

The interwar period for the company that would become the L'Oréal Group on April 5, 1939

Advertising within the group

Initially, the L'Oréal Group was a company that maintained a strong and continuous presence in professional hairdressing publications.

In 1923, Eugène Schueller launched L'Oréal Bulletin, a professional magazine distributed in hair salons.

Two years later, L'Oréal Humoristique was launched to entertain waiting clients.

The women’s magazine Votre Beauté was created in 1933.

In 1935, Eugène Schueller merged all these publications under the Société d’éditions modernes parisiennes (SEMP).

L'Oréal and diversification

L'Oréal began diversifying in 1928 by acquiring the Société des Savons français, founded in 1920 on rue Martre in Clichy (where L'Oréal’s administrative headquarters are located today) and better known under the Monsavon brand.

This marked the company’s first foray into mass-market products. Monsavon was sold to Procter & Gamble in 1961.

Internal group development

L’Oréal’s future also lay in the development of its own products. In 1929, Eugène Schueller created the first fast-acting hair dye called “Imedia,” whose success was amplified by the fashion for short hair.

Four years later, he launched the Dopal shampoo in hair salons.

The following year, the product was rebranded as Dop for mass-market distribution.

In 1935, he developed Ambre Solaire, the first sunscreen cream.

Yet in 1945, L’Oréal had only 25 researchers on staff.

A company at the forefront of social progress

In 1938, Eugène Schueller introduced the “profit-sharing salary,” which adjusted according to the company’s turnover for all L’Oréal employees.

A blemish on the record: flirtation with Marshal Pétain and the Nazis

Eugène Schueller also used his resources to train a far-right group, the Secret Committee of Revolutionary Action (CSAR), which would later be known as La Cagoule. The L’Oréal headquarters hosted many meetings of this organization.

During World War II, Eugène Schueller entrusts André Bettencourt (who would later become his son-in-law) with the management of the French collaborationist magazine, La Terre française.

After the war, André Bettencourt joined the management of the group. At the same time, the L'Oréal subsidiary in Spain was established by Henri Deloncle, the brother of the politician Eugène Deloncle. This subsidiary would employ Jean Filiol, a member of the Cagoule, despite his conviction as a co-responsible for the Oradour-sur-Glane massacre. This allowed him to avoid serving his sentence. Many other Cagoule members would also go on to work for L'Oréal in other foreign subsidiaries after the war.

At the same time, a young François Mitterrand (future President of the Republic) is hired as the general manager of L'Oréal's promotional magazine, Votre Beauté.

The L'Oréal Group becomes a public limited company on April 5, 1939

When the PLC was created, Eugène Schueller held 62,500 of the 70,000 shares of 100 Frs each that made up the company’s 7-million-franc capital.

Today, Françoise Bettencourt Meyers and her children own 34.7% of the group, and their fortune was estimated in 2023 at over 90 billion US dollars.

L'Oréal today

Turnover

It amounted to €38,261 million in 2022 (€38 billion).

Advertising

The group spends around 30% of its turnover on advertising. To date, the group does not have a clearly identified slogan. However, catchphrases sometimes accompany its institutional communication: “Beauty is a scientific adventure”, “L'Oréal, two passions: beauty and research”, “#1 worldwide in beauty”, “Global leader in beauty”, or more recently “Beauty is a value for the future”.

The slogan “Because I'm worth it” has been associated with the L'Oréal Paris brand since the 1970s and covers all of its products. The television advertising has featured several famous ambassadors. Each of the group’s other brands has its own communication, tailored to the image it wishes to reflect and the values it seeks to convey.

Organisation of the business

L'Oréal’s brands are organised by distribution channel across four divisions: professional products, consumer products, L'Oréal Luxe, and dermatological beauty. They are present in 150 countries worldwide.

Professional Products

This division, representing the original activity of the group, offers brands serving professionals in the hairdressing industry. It brings together around twenty brands.

Consumer Products

This division, which also brings together around twenty of the group’s best-known brands, is dedicated to high-tech products distributed in mass retail. It includes brands such as Garnier, L’Oréal Paris, Mixa, and others.

L’Oréal Luxe

This division, which brings together the group’s most prestigious brands, offers perfumes, skincare products and makeup items through selective distribution.

Among certain brands, only the licenses for perfumes and cosmetics are owned by L'Oréal: Azzaro, Cacharel, Diesel, Giorgio Armani, Guy Laroche, Helena Rubinstein, Lancôme, Mugler, Nickel, Paloma Picasso, Prada, Ralph Lauren, Valentino, Yves Saint Laurent, etc.

Dermatological Beauty

This division brings together dermocosmetic care brands available on advice and prescription, offering high-tech products: AcneFree, Ambi and CeraVe (in the United States), La Roche-Posay, Saint-Gervais Mont Blanc (following the acquisition of the management company Les Thermes de Saint-Gervais), Vichy

Also worth mentioning

Photos

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