COVID-19 Impact on L'Oréal

Summary

COVID-19 Impact on L'Oréal July 8th, 2020 based on market analysis and brand diversification by industry and geography

The cosmetics industry is predicted to see a significant sales decline in 2020 due to the COVID-9 outspread. However, L’Oréal, as the industry leader, has its strong brand portfolio and global presence will show some resilience to ride over the crisis. The investment in digitalization and ecommerce over the last few years is likely to help the company to recuperate from losses occurred by ongoing COVID-19 outbreak.

Scope

• L'Oréal's wide geographic presence and ecommerce channel provides a hope of revival from the losses occurred due to COVID-19 crisis
• L'Oréal has seen moderate decline in sales due to acceleration of products sales through ecommerce channel
• Cosmetics and toiletries industry is expected to experience slowdown in sales due to the COVID-19 impact; Latin America is to be the worst hit region
• L'Oréal's strong geographic presence for cosmetic and toiletries should help it to sustain sales during COVID-19 spread
• L'Oréal is expected to focus more on skincare, which has a fair chance of performing well

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