Chanel and L’oreal Competition

The second direct competitor to Chanel is L’Orйal, the world’s largest manufacturer of high-quality cosmetics, perfumes, and hair and skin care products. Although L’Oreal the company doesn’t manufacture a perfume it owns the brand Lancфme that produces Tresor a perfume that rivals Chanel. In the chart below, it lists the US female fragrances brand share by value from the 2002 Tablebase data. The chart shows how the Lancфme perfume Tresor, Estee Lauder and Chanel are in relation to each other.

Manufacturer Brand % 1996 % 1997

Estee Lauder Pleasures 5.8 5.9

Estee Lauder Tommy Girl n/a 5.7

Estee Lauder Beautiful 5.1 5.2

Unilever Eternity 3.6 3.5

Lancome Tresor 2.9 3.1

Unilever Elizabeth Taylor 2.7 2.9

Unilever Obsession 2.6 2.4

Chanel Chanel No 5 2.2 2.2

Elizabeth Arden Fifth Avenue 1.6 1.6

Estee Lauder White Linen 1.3 1.6

Other Overall 72.2 65.9

Tresor, French for “treasure” is priced at around $86.00 while its competitor Chanel perfume has a range of $70-$250 per ounce. Tresor also has a beautiful collection of body crиme, bath gel, body powder and others that carry on the feminine smell of Tresor.

Parisian Eugene Shueller, a chemist who was the inventor of synthetic hair dye, established L’Oreal in 1907. By the 1920’s the company expanded to include shampoo and soaps as well as advertise its products on the radio before any of the competitors of the time. In 1953 the company formed licensee Cosmair to distribute its products to US beauty salons. Cosmair helped them add on perfume and make-up to their inventory and eventually became L’Oreal USA in 2000. The company decided to go public in 1963 unlike its opposition Chanel who has remained privately owned. In 1965 they acquired the upscale French cosmetics maker Lancфme. Lancфme makes up the luxury division of L’Oreal, which also include brands like Ralph Lauren and Giorgio Armani. The Luxury Products Division develops prestigious brands sold in exclusive and selective outlets: department stores, perfumeries, travel retail outlets and the group’s own boutiques. Its mission is to offer customers personalized advice and service. The division markets useful products that integrate the latest innovations, and whose high additional value displays the quality of L’Orйal’s Research.

Lancфme’s history is a somewhat different and more romantic than the beginnings of L’Oreal or Chanel. In 1935, while vacationing in the French countryside, Armand Petitjean happened upon a charming castle ruin- Le Chateau de Lancфme. He was inspired by the delicate, fragrant roses which grew among the weathered stones. The rose encapsulated the feminine beauty of a woman. M. Petitjean chose the rose as the symbol of his new company, Lancфme. He orchestrated Lancфme's first appearance with great skill. In 1935, he launched five new fragrances simultaneously, presenting them to the world at the June opening of