Skincare Market Analysis

of two

Skincare Advisory Competitive Landscape 1

L’Óréal Paris United States encourages its customers to contact its beauty and cosmetics team experts through direct text messaging. L’Óréal has also launched the Effaclar Spotscan app that helps customers analyze their skin and recommends products that best suit them. Estée Lauder has developed a voice application called Liv that provides customers with a plethora of beauty content. Shiseido, Christian Dior, Puig, Kao Corporation, and Revlon, Inc. have trained in-store beauty specialists who tend to customers and offer advice.


  • L’Óréal is a global leader in the cosmetics manufacturing industry. The company specializes in a wide range of products from mascara to skin and hair products. L’Óréal is found to operate under two broad segments — the cosmetics division and the body shop division. The cosmetics division is further classified into professional products, active cosmetics, consumer products, and L’Óréal Luxe while the body shop division engages in manufacturing toiletry and body care products.
    • The professional products segment consists of nine brands with products that are distributed in salons across the globe. Examples of this segment’s brands include Redken, Matrix, and Mizani.
    • The active cosmetics segment has six brands with products that are distributed in various healthcare outlets such as medi-spas, drugstores, and pharmacies. Examples of this segment’s brands include Sanoflore, SkinCeuticals, and La Roche-Posay.
    • The company’s consumer products segment has eight brands that manufacture mass skincare products to be distributed across various retail channels. Examples of this segment’s brands include Garnier, Niely, and African Beauty Brands.
    • L’Óréal Luxe has over 21 brands whose products are distributed at cosmetics stores, dedicated e-commerce websites, department stores, and travel retail. Examples of L’Óréal Luxe brands include Giorgio Armani, Biotherm, and Ralph Lauren Fragrances.
  • Across its brands, L’Óréal offers expert advice to its customers through dedicated web pages that feature tips, tricks, video tutorials, and product-specific articles. It is also found that L’Óréal’s brands have different beauty advise content formats for different locations. For example, the United Kingdom’s L’Óréal Paris website features a separate web page for Trends and Tutorials by UK-based industry experts while the United States’ L’Óréal Paris website contains a dedicated beauty magazine with makeup/skincare tips, tricks, and tutorials.
  • L’Óréal Paris USA has also enabled customers to contact the company’s expert team directly via text messages with queries on L’Óréal’s products, tips, and advice.
  • L’Óréal has recently launched a face-scanning app, Effaclar Spotscan, that utilizes artificial intelligence to analyze and provide immediate dermatological advice. In 2018, L’Óréal launched its FaceTime-style beauty assistant that allows customers to try the product before buying it. The app also allows customers to chat with L’Oreal’s customer service agents.
  • According to the company’s 2018 Annual Report, L’Óréal recorded €26.9 billion ($29.76 billion) in sales with 7.1% of like-for-like sales growth and 5.3% in operating profit growth. The company’s consumer products division accounted for 44.7% of the total sales while L’Óréal Luxe accounted for 34.8% of the total sales in 2018. In terms of business segments, L’Óréal’s skincare products amounted to 31.8% of the total sales, followed by makeup (27.4%), haircare (16.2%), hair coloring (10.9%), and fragrances (9.3%).
  • Since its inception, L’Óréal has acquired 29 different companies, the most recent of which was the acquisition of Société Thermale de la Roche Posay in 2018. The company has made four investments in total, the most recent investment was made in 2018 when Poplar, an Augmented Reality platform, raised £150K ($197,228).

Estée Lauder

  • Estée Lauder is a world leader in manufacturing and selling skincare and hair care products, makeup, and fragrances. Estée Lauder has a global presence in over 150 countries with more than 25 prestige brands such as Tommy Hilfiger, Lab Series, and La Mer.
  • To help customers with their skincare research, Estée Lauder provides customers with a live chat online option on its website. This tool is accompanied by integrated tech that enables customers to try on Estée Lauder’s products virtually. The company is also working towards improving customer interaction in stores by allowing customers to interact with Estée Lauder’s trained beauty advisors and consultants.
  • The company utilizes Instagram and influencers to build relationships with its audience and provide advice to its customers. Estée Lauder has also launched a voice app called Liv that engages consumers with beauty content such as self-care routines. The app can be accessed through smartphones or Google Home.
  • According to the company’s 2019 report, Estée Lauder recorded $14.86 billion in net sales which was an 8.62% increase from the previous year (2018). The report also showed that the company made $2.31 billion in operating income this year. Estée Lauder has acquired eight companies in total, the most recent of which was the acquisition of Have & Be Co. Ltd. for $1.7 billion in 2019. In 2017, Estée Lauder Companies made an undisclosed investment in Deciem.


  • Shiseido is a Japan-based cosmetics company with a wide selection of fragrances, makeup, and skincare products. For over 140 years, the company has been providing customers with products of the highest quality. Shiseido’s portfolio of brands can be categorized into six broad segments — prestige, fragrance, cosmetics, personal care, professional, and healthcare.
  • Across its brands, Shiseido has adopted four primary distribution channels — department stores, Shiseido chain stores, drug stores, and e-commerce platforms. Shiseido provides personal counseling to its customers at its locations in department stores and its licensed stores. The company also has dedicated web pages featuring beauty content by industry experts that range from tips and tricks to video tutorials on skincare routines for its customers.
  • The company has acquired four organizations in total, the most recent of which was the acquisition of Drunk Elephant for $845 million in 2019. Shiseido has invested in three companies, the most recent of which was for Airfree SAS in 2019.

Christian Dior

  • Christian Dior is one of the world’s leading players in the makeup, skincare, and perfume industry with a large portfolio of prestigious brands that are driven by creativity, excellence, and innovation. The key brands under the makeup and skincare segment are Benefit Cosmetics, Make Up For Ever, Acqua di Parma, and Kendo. The company operates under four broad business segments — wines and spirits, fashion and leather goods, perfumes and cosmetics, and watches and jewelry.
  • The operating model of Christian Dior is based on six factors — decentralized organization, prioritizing internal growth, vertical integration, creating synergies, obtaining long-term expertise, and having a complementary mix of locations and activities.
  • Christian Dior gives its customers advice on product use and routines by allowing them to contact the company’s expert advisors via its chat online option. Customers will also be able to make an appointment with advisors in-store for a more personalized review. The Dior advisor team also encourages customers to request a call back for a personal analysis.


  • Puig is a Spain-based third-generation family-owned fashion with a portfolio of 16 well-known brands such as Nina Ricci, Carolina Herrera, and Paco Rabanne. The company operates under three primary segments — fashion, fragrances, and toiletries. The fragrances segment is further categorized under niche brands such as Penhaligon’s, prestige brands such as Paco Rabanne, and lifestyle brands such as Azur and Sportman.
  • The company assigns beauty advisors to in-store locations where customers can consult with Puig’s beauty experts for advice on skin routines, products use, and recommendations.
  • According to the company’s 2018 financial results, Puig recorded €1.93 billion in net revenue with 5% like-for-like growth in 2018. The net income was reported as €242 million accounting for 13% of the total revenue in 2018. The report also indicated that 14% of the total revenue was generated by the Spanish market while 86% was obtained from other countries.

Kao Corporation

  • Kao Corporation is a Japan-based cosmetics company that specializes in developing beauty care, skincare, and hair care products. The Kao Group operates in four business divisions that target the general consumer — skincare and hair care segment, cosmetics segment, fabric and home care segment, and human health care segment. The company also develops a wide variety of chemical products for businesses in the industry.
    • The cosmetics segment of the company engages in developing makeup and skincare products. Skincare brands under Kao Corporation include Sofina and Est while makeup brands include SUQQU and Kate. Kao Corporation also owns prestige cosmetics brands such as Molton Brown and Sensai.
    • The skincare and hair care segment of the company contains brands such as Essential, John Frieda, and Merit. The segment also includes professional hair salon brands such as Oribe and Goldwell.
  • Kao Corporation has adopted the concept of employing Beauty Advisors who will coach and guide customers in choosing the right product that best suits their needs. Kao’s beauty consultants will assist customers to plan a tailored skincare routine by conducting a skin analysis with AI-powered devices.
  • Kao Corporation reported 1.508 billion JPY in net sales with the cosmetics business segment accounting for 18.5% of the total sales and the skincare business segment accounting for 22.6% of the total sales in 2018. The 2018 Annual Report of Kao Corporation also indicated that the company recorded 207.7 billion JPY in operating income and saw a 0.83% of year-over-year revenue growth. Kao Corporation has acquired four companies, the most recent of which was the acquisition of Washing Systems in 2018.

Revlon, Inc.

  • Revlon, Inc. is one of the world’s leading beauty and cosmetics company with a portfolio of well-known brands that manufactures and sells cosmetics, hair care and hair color products, beauty tools, grooming products, skincare products, antiperspirant, and fragrances in over 150 countries. Revlon, Inc. operates around four business segments — Revlon, Fragrances, Elizabeth Arden, and portfolio brands that are designed to improve brand equity.
  • With the help of Revlon’s in-store beauty advisors, customers have the ability to obtain a personalized analysis so that they might plan the right skincare routine, purchase the right products, and manage their skin better.
  • According to the company’s 2018 annual report, Revlon recorded $2.56 billion in net sales with North America generating the largest share of revenue ($1.354 billion). It was also found that the year-over-year revenue growth for the final quarter of 2018 amounted to -8.85%.
  • Revlon, Inc. has acquired five companies, the most recent of which was the acquisition of Elizabeth Arden for $870 million in 2016. The company has raised a total of $50 million in funding over a single round (Post-IPO Debt).
of two

Skincare Advisory Competitive Landscape 2

KOSÉ Corporation has a group of trained Beauty Advisors who counsel customers on skincare product use in selected cosmetics stores and department stores across Asia. Coty Inc. has several skincare brands under its umbrella, all of which interact with customers through beauty tutorials and expert articles. Oriflame Cosmetics AG reaches its customer base through its vast network of consultants and micro-influencers. Olay helps customers with the best choice of skincare products and skincare routine through its AI-powered Skin Advisor. TroveSkin is a digital app that helps customers analyze and monitor their skin over time. Pond’s advises its customers on the choice of skincare products through online video tutorials.

KOSÉ Corporation

  • The Japan-based company works towards creating values and a culture that embodies “a distinctive beauty through a sophisticated fusion of sensuousness and intelligence”. Essentially, KOSÉ Corporation operates under two business segments — make-up and cosmetry. The make-up business segment manufactures and sells products under several brands such as Addiction, Cosme, Espique, and Decorte while the cosmetry business segment deals with the manufacture and sales of cosmetics under brands such as Clear, Suncut, Fasio, and Visee.
  • KOSÉ Corporation has a group of specially trained KOSÉ Beauty Advisors who provide counseling to help their customers select the right product that best suits them. The company’s beauty advisors are present in selected department stores and cosmetics stores across Asia.
  • In an attempt to interact more with customers, KOSÉ Corporation organizes the annual KOSÉ Beauty Festa in Japan where all of KOSÉ’s brands are displayed under one roof. For a limited duration of three days, customers have the chance to explore the company’s products and interact with KOSÉ’s employees and beauty advisors. In 2018, over 68,000 people attended the KOSÉ Beauty Festa.

Coty Inc.

  • Coty Inc. is a New York-based world leader in developing skincare, cosmetics, hair color, fragrances, and styling brands. The company operates in three distinct divisions — luxury, professional beauty, and consumer beauty.
    • The luxury segment of Coty engages in making high-end color cosmetics, fragrances, and skincare products.
    • The professional beauty segment engages in developing beauty products that are hand-crafted by industry experts and serves professionals and salon owners.
    • The consumer beauty segment engages in helping customers around the world uniquely express their beauty. In this segment, the company manufactures and sells mass color cosmetics, mass retail styling and hair coloring products, mass fragrances, and body care products.
    • Under the three business segments, Coty Inc. has over 49 beauty brands including Roberto Cavalli, Escada, and Covergirl. Of the 49 brands, 19 brands focus on consumer beauty such as Covergirl, Sally Hansen, Wella, and Monange.
  • Coty Inc. helps advise customers on the right product to use by providing video tutorials and detailed articles on product use by beauty experts and professionals. Each brand’s website contains a wide variety of educational material for customers such as make-up tutorials for different skin tones and videos on trending looks. Some examples include the Nail Art video tutorial by Sally Squad, video explanation on the right hair color choice by the color director of Clairol, Marcy Cona, and How-To: Makeup Tips & Tricks video tutorials by Covergirl’s beauty experts.
  • Coty Inc. has reported a net revenue of $8.648 billion in its 2019 Annual Report. The report also indicated that the revenue declined by 8% from the previous year. Coty Inc. is expecting an adjusted operating income of 5-10% y-o-y growth in 2020.

Oriflame Cosmetics AG

  • Oriflame Cosmetics AG is a Swedish beauty company that has a global presence in over 60 countries. Oriflame provides its customers with a wide range of responsible wellness and beauty products along with entrepreneurial opportunities to build a business with its direct-selling model called “entrepreneurship in a box”. The company’s product categories are wellness, accessories, personal and hair care, skincare, color cosmetics, and fragrances.
  • Since its inception, Oriflame’s business model has undergone a gradual transformation from focusing on person-to-person sales in the 1980s to a modern digital model in 2018. As part of its transformation, the company’s digital strategy focuses on a consultant-centric model where “Consultants are empowered to sell, recruit, and manage their business using the latest digital tools”. As a result, Oriflame reaches the online shopping segment primarily through its consultants.
  • Through Oriflame’s social-selling model, consultants and micro-influencers connect with customers in various ways. For example, Oriflame’s brand in China conducts its business mainly through WeChat where consultants promote and sell Oriflame products. A consultant/influencer may also share insightful and inspiring beauty content with friends/followers on social media channels which are connected to a particular Oriflame product.
  • Direct contact with Oriflame’s consultants allows consumers to improve trust and make personal purchases that best suit them. Consultants also provide personal tailored advice to benefit each customer based on their needs.
  • In 2018, Oriflame reported €1.27 billion ($1.67 billion) in net sales with an operating margin of 11.3% and a gross margin of 69.2%. According to the company’s 2018 Annual Report, the operating profit saw a year-over-year value of -6%. While Oriflame Cosmetics has no public funding information, it was found that the company was acquired by IK Investment Partners in 1999.


  • Olay is a United States-based beauty brand that manufactures and sells skin care products and exotic fragrances. Olay’s products are categorized as body, eyes, cleansers, toners, wipes, masks and mists, moisturizers, serums, treatments, and gift sets. Olay is one of many beauty brands owned and operated by Procter & Gamble.
  • According to an article published by the BusinessWire, Olay recently launched a Skin Advisor platform that utilizes artificial intelligence to help customers obtain unique tailored skincare analysis and provides recommendations based on answering a short questionnaire and reviewing customers’ selfies.
  • Olay claims that over a million women have benefited from the company’s AI Skin Advisor. Over 94% of these women have admitted that the recommended products were the right choice. Customers can also obtain a wide range of beauty and skincare education through Olay’s blog which features information on skincare tips, skin concerns, and skin conditions due to lifestyle, climate, and aging.
  • According to WPP’s Brandz, Olay recorded a brand value of over $4 billion in 2018. While Procter & Gamble does not provide a brand-wise breakdown of its revenue and year-over-year growth, P&G’s 2019 annual report reported that its beauty segment, which includes Olay, recorded $12.89 billion in net sales with 4% of year-over-year growth.


  • TroveSkin is a Singapore-based skincare app that utilizes artificial intelligence to help customers analyze and maintain their skin. The app offers personalized recommendations of skincare products that would be most suitable for the analysis done. The application focuses on answering if the customers’ skincare products work and which skincare products are best suited for them.
  • Established in 2017, TroveSkin is a privately-held company and has raised an undisclosed amount in funding through a seed round in the same year. TroveSkin was funded by FuturePlay.


  • Pond’s is a skincare brand owned by Unilever and has been designing products to help customers meet their changing skincare needs for over 150 years. Pond’s skincare products are categorized under four broad segments — suncare, anti-pimple creams, anti-wrinkle, and facewash products. According to Marketing91, the company’s moisturizers and anti-aging products are the “bread and butter for the company”.
  • The company has a dedicated page on its website called “skinspiration” where experts share their knowledge, provide tips, and tutorials on how to use Pond’s products. Some beauty content featured on Skinspiration include What is the Best Anti-Aging Skin Care routine and The Do’s and Don’ts to Treat Dry Skin on Face. Pond’s is also found to be actively posting beauty content on its social media channels — Facebook, Twitter, YouTube, and Twitter.
  • While Unilever does not provide a brand-wise breakdown of its revenue and year-over-year growth, the company’s 2018 annual report records a turnover of about €50.9 billion ($66.95 billion) with beauty and personal care brands accounting for 40% of the total turnover in 2018. The operating profit of this segment is 33% of the total operating profit of €12.53 billion ($16.48 billion).

Research Strategy

To obtain the business details of the listed skincare companies, we began our search by searching through each company’s official website; annual reports; press releases; industry-specific reports from websites such as BusinessWire; market research reports from websites such as GrandViewResearch; company social media pages on Facebook, Twitter, Instagram, and YouTube; and media reports from websites such as Forbes. While most of the information was readily available, details on the annual revenue, funding amount, and year-over-year growth for TroveSkin were publicly unavailable. The lack of information can be because TroveSkin is a recent startup (2017) and is privately-held.

From Part 01
From Part 02