L’Oreal is one of the leading cosmetics and Beauty Company in the world. It is making many different varieties of products to meet up the needs of the contemporary global fashion trends. L’Oreal is the industry that was established in France and is considered as the best in the domain. It is based on the production of hair and skin products. Moreover, it has also a variety of perfume range and much pharmaceutical stuff. This company covers a lot of regions. It has its units in around 130 countries. There are main factors that are affecting the company. With the passage of time, these factors are directly influencing the marketing strategies of the company. It is therefore always incumbent to consider these factors.
The political factors include the rules and policies of the government in which the companies like L’Oreal have been working. As the manufacturing company is in Paris so mostly the governmental policies of France affect the company very much. Apart from this the several import policies of the regions play a vital role in the success of the L’Oreal. With the advent of globalization, the political factors have a positive role in the business industry like L’Oreal.
The economic factors include the Exchange rates of the state in which the company is working. The recession element is also one of the mainstream elements in the upbringing of the cosmetic organization like L’Oreal. Apart from these attributes pertaining to the economic factors the Prices for the products also play an important role. This price of products varies in different regions. For instance, in few regions, the price of specific skin products is high and so is then the business in that region. Moreover, The GDP of the state is the main factor contributing the business of the luxury products brand like L’Oreal. The developed states with high Human Development Index and a good economy will be more prone to the branded products like L’Oreal. The people of such states will be more interested in buying products items like L’Oreal products, so there will be more chances of the sale and will positively affect the business as a whole.
The social factors encompass the technical trends in the society. Certainly, the modern societies are more interested in fashion trends and so in the L’Oreal products. The societies who have a sense of latest technology and are always eager to adopt the contemporary technical trends will always welcome the innovations by L’Oreal. There are certainly ethical issues as well for instance the use of ingredients in the product, some states or the people of society will consider it as holy sin to use such ingredient. All these social and ethical pressures and trends play a prominent role in the business of L’Oreal.
Technology has its ramifications in every sphere of life. For the companies like L’Oreal, the technological attributes like innovation and trust have played a great role. The L’Oreal brand is very much prone to innovation and has always followed the contemporary trends. The technology gives it possible to spread the innovation within seconds and the fashionistas are there to purchase the trendy products. Therefore, for the luxury products brands like L’Oreal innovation is and should be the key feature to follow for the success.
There have been many competitors to L’Oreal. For the company like L’Oreal in order to maintain the graph of success, it is incumbent to fulfill all the legalities of the region in which it is working. The world has now become a global village and people have become very much vigilant about the legal aspects of the products. L’Oreal is the brand of the upper middle class or the elites of every society and they are very much concerned about all the legit stuff. This factor is therefore very important when it comes to brands like L’Oreal.
The environmental factors encompass various global environment safety laws that must abide by the global standards. The World has now taken the vow in making the planet a beautiful and pollution free. In this perspective, all the international brands are playing their role in showing the support to the world. So L’Oreal can also play its part by supporting such campaigns and following the norms of the world. L’Oreal has been one of the leading international brands. It is always best to understand the external as well as the internal factors that affect the company as a whole. The aforementioned factors are the crux of the analysis done for the brand. Therefore, it is always a good strategy to consider these factors while determining the policies for the company. In the same way, the future policies of the company could also be made as per the contemporary trends.