1
00:00:01,480 --> 00:00:06,080
Speaker 1: Beauty is a unique industry, one that's glamorous and intensely personal.

2
00:00:06,480 --> 00:00:10,280
Speaker 1: It makes products like any other cosmetics, hair care, and perfume.

3
00:00:10,680 --> 00:00:13,240
Speaker 1: Yet these items can be more than accessories. For some,

4
00:00:13,440 --> 00:00:16,640
Speaker 1: they become part of your identity. Of course, the saying

5
00:00:16,680 --> 00:00:20,000
Speaker 1: goes beauty is only skin deep, but the industry is

6
00:00:20,040 --> 00:00:22,520
Speaker 1: now holding up a mirror to our changing world in

7
00:00:22,600 --> 00:00:25,840
Speaker 1: terms of what we want and the environmental impact of

8
00:00:25,880 --> 00:00:31,120
Speaker 1: how it's made. On this episode of Leaders with Laqua

9
00:00:31,200 --> 00:00:33,840
Speaker 1: Goes Green, I head to Paris to meet the man

10
00:00:33,960 --> 00:00:37,879
Speaker 1: in charge of the world's largest beauty company, Loreal Nicolai

11
00:00:37,880 --> 00:00:42,159
Speaker 1: Ieronimus describes himself as a beauty junkie, overseeing more than

12
00:00:42,240 --> 00:00:45,559
Speaker 1: eighty thousand employees of over one hundred and fifty countries.

13
00:00:45,960 --> 00:00:49,120
Speaker 1: The beauty market is worth hundreds of billions of dollars.

14
00:00:49,400 --> 00:00:52,120
Speaker 1: With Loreal at the top of the tree, in a

15
00:00:52,200 --> 00:00:55,560
Speaker 1: wide ranging interview, I try to get beneath the veneer

16
00:00:56,000 --> 00:00:59,760
Speaker 1: to understand the men, the company and its efforts to

17
00:00:59,800 --> 00:01:02,160
Speaker 1: help the most beautiful thing of all our plan.

18
00:01:06,560 --> 00:01:08,320
Speaker 2: We could rest like you so much for joining this

19
00:01:08,440 --> 00:01:10,800
Speaker 2: on Leaders Hello, scene, very nice being with you.

20
00:01:10,880 --> 00:01:11,520
Speaker 1: I mean, this is fun.

21
00:01:11,560 --> 00:01:12,400
Speaker 2: It feels glamorous.

22
00:01:12,480 --> 00:01:13,360
Speaker 1: Do you love your job?

23
00:01:13,800 --> 00:01:14,600
Speaker 2: I love my job.

24
00:01:14,640 --> 00:01:16,880
Speaker 3: You know, I've been working for Loyal for thirty six

25
00:01:16,959 --> 00:01:20,240
Speaker 3: years now, so I guess it's a perfect proof that

26
00:01:20,319 --> 00:01:20,760
Speaker 3: I love it.

27
00:01:20,959 --> 00:01:23,080
Speaker 1: So do you remember that first dame when you joined Yane?

28
00:01:23,120 --> 00:01:24,800
Speaker 2: Did you say, I actually I want to get to

29
00:01:24,880 --> 00:01:25,440
Speaker 2: the top and too?

30
00:01:26,160 --> 00:01:27,160
Speaker 1: Why was it your cantray?

31
00:01:27,240 --> 00:01:32,319
Speaker 3: I remember my first interviews because I was interviewing with many,

32
00:01:32,880 --> 00:01:36,760
Speaker 3: you know, consumer good companies, and I chose Laurel not

33
00:01:36,880 --> 00:01:40,320
Speaker 3: because I knew much about beauty at the time, even

34
00:01:40,400 --> 00:01:43,839
Speaker 3: though I liked the importance of of looks and style,

35
00:01:44,360 --> 00:01:46,280
Speaker 3: but I was struck by the fact that there was

36
00:01:46,319 --> 00:01:49,480
Speaker 3: an atmosphere of art and creativity in this in this.

37
00:01:49,480 --> 00:01:52,520
Speaker 2: Big hall we are. Lorel was the owner of the

38
00:01:52,640 --> 00:01:54,120
Speaker 2: Art Coial Gallery, and.

39
00:01:54,040 --> 00:01:57,680
Speaker 3: There were lots of art pieces in the in the

40
00:01:58,240 --> 00:02:01,320
Speaker 3: in the hall, and lots of you know, glamorous people,

41
00:02:01,400 --> 00:02:04,080
Speaker 3: and it felt like a very exciting place to work with.

42
00:02:05,800 --> 00:02:09,520
Speaker 3: I didn't absolutely did not intend or even think of

43
00:02:10,040 --> 00:02:13,000
Speaker 3: rising to the top. I just thought I was here

44
00:02:13,040 --> 00:02:14,959
Speaker 3: to learn, and Laura has a great school.

45
00:02:15,120 --> 00:02:17,240
Speaker 1: How has the beauty industry actually changed the last thirty

46
00:02:17,240 --> 00:02:19,560
Speaker 1: six years? Is it more high end? Has it become bigger.

47
00:02:19,680 --> 00:02:21,120
Speaker 1: We talk about men a lot more.

48
00:02:21,600 --> 00:02:24,000
Speaker 3: Well, first of all, you know, the great thing about

49
00:02:24,040 --> 00:02:26,880
Speaker 3: beauty is that since the dawn of time, it is

50
00:02:26,919 --> 00:02:29,880
Speaker 3: an essential need for humanity. You look at you know,

51
00:02:29,919 --> 00:02:31,400
Speaker 3: I don't know if you ever saw that book we

52
00:02:31,480 --> 00:02:33,640
Speaker 3: published that's one hundred thousand years of Beauty. When you

53
00:02:33,680 --> 00:02:36,560
Speaker 3: see that in the caves you could see paintings of

54
00:02:36,639 --> 00:02:40,840
Speaker 3: makeup on the bodies. Of course, in Egypt, men and

55
00:02:40,880 --> 00:02:46,040
Speaker 3: women were already using eye makeup and fragrances. So this

56
00:02:46,400 --> 00:02:49,200
Speaker 3: because of this, because it's so much part of being

57
00:02:49,200 --> 00:02:52,720
Speaker 3: a human. It's a market that's been constantly growing. It's

58
00:02:52,760 --> 00:02:56,440
Speaker 3: a market it's two hundred and seventy billion euros and

59
00:02:56,480 --> 00:02:57,720
Speaker 3: it's growing.

60
00:02:57,840 --> 00:02:58,200
Speaker 2: And are.

61
00:03:00,040 --> 00:03:03,960
Speaker 3: Vestment is that by two thousand, twenty thirty it should

62
00:03:04,000 --> 00:03:08,160
Speaker 3: be close to four hundred billion. And it's growing thanks

63
00:03:08,160 --> 00:03:11,000
Speaker 3: to you know, the rise of middle classes that are

64
00:03:11,040 --> 00:03:14,440
Speaker 3: aspiring to great products. It's premiumizing. People want more and

65
00:03:14,520 --> 00:03:17,560
Speaker 3: more good products, so the prices are going up. And

66
00:03:17,680 --> 00:03:22,840
Speaker 3: indeed it's for everybody. So of course women, but men

67
00:03:22,919 --> 00:03:24,640
Speaker 3: are using more and more beauty products.

68
00:03:25,560 --> 00:03:26,480
Speaker 2: People that get.

69
00:03:26,320 --> 00:03:29,679
Speaker 3: Old need to continue to use beauty products. So it

70
00:03:29,760 --> 00:03:32,560
Speaker 3: starts very early and you use beauty till the end

71
00:03:32,560 --> 00:03:34,560
Speaker 3: of your life. So it's a very dynamic market and

72
00:03:34,600 --> 00:03:38,640
Speaker 3: it's going to continue to grow in the next years.

73
00:03:38,680 --> 00:03:41,080
Speaker 1: But if it's lucrative and it grows, it also means

74
00:03:41,120 --> 00:03:42,560
Speaker 1: you're going to have a lot more rivals.

75
00:03:42,760 --> 00:03:44,720
Speaker 3: We are the leaders of that market, but we have

76
00:03:44,760 --> 00:03:47,520
Speaker 3: only fourteen percent approximately of the market, so it means

77
00:03:47,520 --> 00:03:49,600
Speaker 3: that we still have eighty six percent to conquer at

78
00:03:49,680 --> 00:03:53,240
Speaker 3: least some of it. There is more competition, there's lots

79
00:03:53,240 --> 00:03:55,120
Speaker 3: of brands. One of the things that have changed over

80
00:03:55,160 --> 00:03:57,760
Speaker 3: the years is that some of the barriers to entry,

81
00:03:57,960 --> 00:04:00,400
Speaker 3: like you know, with the rise of e commerce, social

82
00:04:00,480 --> 00:04:05,120
Speaker 3: networks has allowed many brands to appear to be created,

83
00:04:05,160 --> 00:04:07,160
Speaker 3: maybe indie brands as we call them.

84
00:04:07,360 --> 00:04:08,280
Speaker 2: Plus big groups.

85
00:04:08,800 --> 00:04:12,880
Speaker 3: There's a lot of churn in the indie brands, so

86
00:04:13,080 --> 00:04:17,680
Speaker 3: not many a peer few stay. And the good thing

87
00:04:17,760 --> 00:04:21,119
Speaker 3: is that it forces companies like us with our big brands,

88
00:04:21,160 --> 00:04:23,440
Speaker 3: but also small brands because we acquire some of these

89
00:04:23,440 --> 00:04:28,240
Speaker 3: indie brands, to constantly reinvent ourselves adapt to the new times.

90
00:04:28,279 --> 00:04:30,360
Speaker 2: We are very agile company.

91
00:04:30,720 --> 00:04:33,760
Speaker 1: You have pretty formidable competitors. You have airme centering the

92
00:04:33,800 --> 00:04:36,400
Speaker 1: market to beauty you have of your age also really

93
00:04:36,440 --> 00:04:37,360
Speaker 1: trying to focus on that.

94
00:04:38,080 --> 00:04:38,240
Speaker 2: Well.

95
00:04:38,279 --> 00:04:40,320
Speaker 3: There's a lot of competition and lots of people that

96
00:04:40,440 --> 00:04:43,560
Speaker 3: want to enter beauty, which proves that it's a very lucrative,

97
00:04:43,560 --> 00:04:46,599
Speaker 3: as you say, an attractive market. But then it's a

98
00:04:46,680 --> 00:04:49,640
Speaker 3: market that requires a lot of expertise. You know, we

99
00:04:49,680 --> 00:04:51,840
Speaker 3: only do beauty, and we've been doing beauty four one

100
00:04:51,880 --> 00:04:56,240
Speaker 3: hundred and fourteen years, and there are more than tricks.

101
00:04:55,920 --> 00:04:56,400
Speaker 2: Of the trade.

102
00:04:56,440 --> 00:04:59,560
Speaker 3: It's about research, It's about knowing the skin, knowing about hair.

103
00:05:00,080 --> 00:05:03,760
Speaker 3: It's also about understanding the cultural differences around the globe

104
00:05:03,800 --> 00:05:06,000
Speaker 3: because you can have global brands, but you always have

105
00:05:06,080 --> 00:05:12,320
Speaker 3: to adapt your beauty offering to the local specificities, whether climate, religion, culture,

106
00:05:12,880 --> 00:05:15,560
Speaker 3: and this is something that you do that you do

107
00:05:15,640 --> 00:05:17,839
Speaker 3: not improvise. And by the way, many of the brands

108
00:05:17,839 --> 00:05:20,479
Speaker 3: that are created small brands have a very hard time

109
00:05:21,040 --> 00:05:23,680
Speaker 3: expanding beyond their home market and as far as the

110
00:05:23,800 --> 00:05:27,320
Speaker 3: as the big groups, they are very strong competitors. But

111
00:05:27,680 --> 00:05:29,800
Speaker 3: we are getting share every year, so I guess we

112
00:05:29,839 --> 00:05:30,760
Speaker 3: are doing a bit better.

113
00:05:30,839 --> 00:05:32,120
Speaker 1: What will grow the most.

114
00:05:31,960 --> 00:05:34,160
Speaker 3: Well right now and for the last couple of years

115
00:05:34,839 --> 00:05:37,039
Speaker 3: and probably for the next couple of years, The fastest

116
00:05:37,040 --> 00:05:42,680
Speaker 3: growing division has been dematological beauty because there's a very

117
00:05:42,720 --> 00:05:48,880
Speaker 3: strong desire for healthy beauty products that are both safe,

118
00:05:48,960 --> 00:05:52,239
Speaker 3: that are solving your skin issues and you know, whether

119
00:05:52,520 --> 00:05:56,599
Speaker 3: because of the environment, because of the UV rays, because

120
00:05:56,600 --> 00:05:59,479
Speaker 3: of stress. There's lots of skin issues that need to

121
00:05:59,520 --> 00:06:03,880
Speaker 3: be addressed by products that are designed by and with

122
00:06:04,040 --> 00:06:08,080
Speaker 3: dermatologists and prescribed by dermatologists. So brands like Saravey or

123
00:06:08,120 --> 00:06:10,440
Speaker 3: aosh Pose are just you know, going through the roof.

124
00:06:10,480 --> 00:06:11,920
Speaker 1: So it's also influencers, right.

125
00:06:11,880 --> 00:06:14,320
Speaker 3: Yeah, it's influencers, but influencers, you know, in the end,

126
00:06:14,920 --> 00:06:20,120
Speaker 3: they're a new way to engage consumers. But influencers, of

127
00:06:20,160 --> 00:06:24,559
Speaker 3: course they can be remunerated, but in the end, most

128
00:06:24,600 --> 00:06:27,320
Speaker 3: of the organic content and the most powerful content is

129
00:06:27,400 --> 00:06:31,480
Speaker 3: sincere and genuine, and consumers want authenticity, So influencers are

130
00:06:31,600 --> 00:06:33,839
Speaker 3: just a way to amplify the quality of the product.

131
00:06:33,920 --> 00:06:39,839
Speaker 3: So Dermatological beauty super strong, but also Laurel Lux for

132
00:06:40,200 --> 00:06:43,279
Speaker 3: the last decade that had the pleasure or to be running.

133
00:06:43,320 --> 00:06:45,680
Speaker 3: This division has been read the number one.

134
00:06:45,520 --> 00:06:47,400
Speaker 2: Gross driver of the groups.

135
00:06:47,800 --> 00:06:50,520
Speaker 3: With the acceleration in China in particular, where we have

136
00:06:50,640 --> 00:06:53,440
Speaker 3: more than thirty percent market share of the luxury.

137
00:06:53,080 --> 00:06:54,520
Speaker 1: Market, and that's bigger margins.

138
00:06:54,800 --> 00:06:57,839
Speaker 3: It's bigger margins. The success is the success of quality

139
00:06:58,120 --> 00:07:03,960
Speaker 3: in the end. In this world where people have growing expectations,

140
00:07:03,960 --> 00:07:07,800
Speaker 3: sometimes in inflation and inflation every times like this one,

141
00:07:07,960 --> 00:07:10,400
Speaker 3: they pay more attention to how they spend their money,

142
00:07:10,760 --> 00:07:13,680
Speaker 3: and they want their money's worth, so they're always going

143
00:07:13,760 --> 00:07:17,760
Speaker 3: to go for products that deliver both on efficacy but

144
00:07:17,800 --> 00:07:21,360
Speaker 3: also on pleasure of fuse. And as we as you know,

145
00:07:21,440 --> 00:07:24,280
Speaker 3: we spend one billion euro every year on research. We

146
00:07:24,320 --> 00:07:27,480
Speaker 3: make sure that we do create the best products and

147
00:07:27,520 --> 00:07:30,000
Speaker 3: that when people try our brands they stick to it.

148
00:07:30,040 --> 00:07:32,000
Speaker 3: So that's the number one recipe of our success.

149
00:07:32,120 --> 00:07:35,160
Speaker 1: I mean, there's a lipstick indexed which I've always been

150
00:07:35,160 --> 00:07:38,640
Speaker 1: fascinated by. So in hard economic times, actually the sales

151
00:07:38,680 --> 00:07:39,960
Speaker 1: of lipsticks go up.

152
00:07:40,120 --> 00:07:43,400
Speaker 3: The ellipstick index proves right every time, and it has

153
00:07:43,480 --> 00:07:45,280
Speaker 3: proven right even in the.

154
00:07:45,880 --> 00:07:47,760
Speaker 2: So is it going up or post COVID, No, it's

155
00:07:47,760 --> 00:07:49,080
Speaker 2: going up. It's going up.

156
00:07:49,120 --> 00:07:52,080
Speaker 3: It continues to the only moment when it was actually

157
00:07:52,160 --> 00:07:54,960
Speaker 3: not a good moment for lipstick is when we're all

158
00:07:54,960 --> 00:07:56,240
Speaker 3: wearing masks.

159
00:07:56,400 --> 00:07:59,760
Speaker 2: All staying home or both. So now that masks are

160
00:07:59,760 --> 00:08:01,320
Speaker 2: off in most countries more perfumes.

161
00:08:01,520 --> 00:08:07,600
Speaker 3: Yeah, fragrance is the most spectacular post COVID acceleration. We

162
00:08:08,120 --> 00:08:14,400
Speaker 3: expected fragrance to come back because just of social life resuming,

163
00:08:14,520 --> 00:08:18,280
Speaker 3: but we see that there's been an augmentation of the

164
00:08:18,360 --> 00:08:23,280
Speaker 3: role of fragrance precisely about this from smelling good to

165
00:08:23,360 --> 00:08:27,200
Speaker 3: feeling good. And today, whether in America, in Europe and

166
00:08:27,280 --> 00:08:30,040
Speaker 3: of course and we're very interested in China, there's a

167
00:08:30,080 --> 00:08:32,880
Speaker 3: fragrance explosion. And as we are the worldwide number ones

168
00:08:32,920 --> 00:08:34,720
Speaker 3: in fragrance, we are very happy about this.

169
00:08:34,800 --> 00:08:38,840
Speaker 1: If you're Mediterranean, it's I guess more likely that you

170
00:08:38,880 --> 00:08:42,080
Speaker 1: grow up wearing a fragrance, maybe every day, maybe from

171
00:08:42,200 --> 00:08:44,920
Speaker 1: teenage years. Are there are parts of the world where actually,

172
00:08:45,440 --> 00:08:47,800
Speaker 1: you know, that's only starting to be adopted now, and

173
00:08:47,920 --> 00:08:49,640
Speaker 1: is that really the market you want to be in?

174
00:08:49,760 --> 00:08:51,160
Speaker 2: People used to have one fragrance.

175
00:08:51,760 --> 00:08:55,000
Speaker 3: My mother I offered her all the fragrances of the

176
00:08:55,080 --> 00:08:57,319
Speaker 3: local group. I never managed to get her to do

177
00:08:57,559 --> 00:09:01,040
Speaker 3: something else than a fragrance, which is actually not a

178
00:09:01,080 --> 00:09:03,480
Speaker 3: loyal one. So a lot of people we are wearing

179
00:09:03,480 --> 00:09:04,840
Speaker 3: the same fragmance all their life.

180
00:09:05,200 --> 00:09:08,400
Speaker 2: Now the younger population, they have two, three, four to.

181
00:09:08,320 --> 00:09:11,440
Speaker 3: Five fragrances because they will have one for work, one

182
00:09:11,520 --> 00:09:13,880
Speaker 3: for to meet the parents, one to for to go

183
00:09:13,920 --> 00:09:17,440
Speaker 3: on a date, etcetera extel, so that increase consumption. But

184
00:09:17,520 --> 00:09:20,000
Speaker 3: the part of the world where it's new and growing

185
00:09:20,160 --> 00:09:23,840
Speaker 3: very fast is China. China was not a fragrance market.

186
00:09:24,040 --> 00:09:26,240
Speaker 3: It was mainly a skin care market and then a

187
00:09:26,280 --> 00:09:30,480
Speaker 3: makeup market, and fragrance which is still only a ten

188
00:09:30,600 --> 00:09:33,439
Speaker 3: ise percent of the total selective market, but it's growing

189
00:09:34,160 --> 00:09:38,160
Speaker 3: high double digits and has really been something that's happened

190
00:09:38,160 --> 00:09:38,400
Speaker 3: over the.

191
00:09:38,440 --> 00:09:39,720
Speaker 2: Last three four years.

192
00:09:40,200 --> 00:09:44,959
Speaker 3: And as the Chinese consumers are both sophisticated and like premium,

193
00:09:45,000 --> 00:09:48,440
Speaker 3: but also they do not know fragrances as well as

194
00:09:48,640 --> 00:09:52,280
Speaker 3: European consumers. They go more for the premium and collection

195
00:09:52,520 --> 00:09:55,200
Speaker 3: where we call collection fragrances which are more expensive, but

196
00:09:55,240 --> 00:09:57,240
Speaker 3: also that describe what you're going.

197
00:09:57,160 --> 00:09:59,000
Speaker 1: To smell, and but this has to be in store.

198
00:09:59,280 --> 00:10:01,319
Speaker 1: The people have they buy it online, They go.

199
00:10:01,280 --> 00:10:04,760
Speaker 3: To stores, they try, they smell, they get you know,

200
00:10:04,800 --> 00:10:08,440
Speaker 3: some advice, and then depending on the experience, either they

201
00:10:08,480 --> 00:10:12,000
Speaker 3: come back to stores or they repurchase online. If they

202
00:10:12,240 --> 00:10:14,640
Speaker 3: if they like a fragrance, then it's easy to repurchase

203
00:10:14,679 --> 00:10:15,160
Speaker 3: in online.

204
00:10:17,400 --> 00:10:21,240
Speaker 1: Coming up Nicola Jeronimus explains the importance of trying every

205
00:10:21,280 --> 00:10:24,760
Speaker 1: single product that Loreal makes, as well as a few

206
00:10:24,760 --> 00:10:37,640
Speaker 1: from his competitors. Nicolayeronimus has spent nearly four decades working

207
00:10:37,640 --> 00:10:41,120
Speaker 1: at the biggest beauty company in the world, Loreal. The

208
00:10:41,200 --> 00:10:45,600
Speaker 1: industry is surprisingly resilient, but the company takes nothing for granted,

209
00:10:45,960 --> 00:10:49,800
Speaker 1: spending around one billion euros in research and development every year.

210
00:10:50,360 --> 00:10:52,959
Speaker 1: I ask him about the changes he's seen and the

211
00:10:53,040 --> 00:10:59,960
Speaker 1: key to prolonged success. You seem to love your products.

212
00:11:00,120 --> 00:11:01,200
Speaker 2: I love my products.

213
00:11:01,840 --> 00:11:02,600
Speaker 1: Do you try them all?

214
00:11:02,880 --> 00:11:04,880
Speaker 3: I try them all? I try my products. I try

215
00:11:04,920 --> 00:11:08,520
Speaker 3: competition just to make sure we have the best and sometimes,

216
00:11:08,520 --> 00:11:10,480
Speaker 3: you know, we see an interesting comedy of products that

217
00:11:10,520 --> 00:11:11,640
Speaker 3: we have to to.

218
00:11:11,600 --> 00:11:13,439
Speaker 2: Step up to. But most of the time I use

219
00:11:13,480 --> 00:11:15,160
Speaker 2: our products. Yeah, how much do you.

220
00:11:15,200 --> 00:11:17,080
Speaker 1: Use them for? I mean, this is very practical advice.

221
00:11:17,120 --> 00:11:19,160
Speaker 1: But to know whether product works or not? Is it

222
00:11:19,200 --> 00:11:20,719
Speaker 1: two weeks? Three weeks? Do you have to give it?

223
00:11:21,080 --> 00:11:23,680
Speaker 3: I use I use my products every day, and in

224
00:11:23,720 --> 00:11:26,200
Speaker 3: any product, it depends on the categories. But you you

225
00:11:26,280 --> 00:11:28,720
Speaker 3: have you have two ways to assess a product. One

226
00:11:28,840 --> 00:11:32,040
Speaker 3: is what we call instant gratification. So do you do

227
00:11:32,080 --> 00:11:33,960
Speaker 3: you like make Do you like it does smell good?

228
00:11:34,520 --> 00:11:38,920
Speaker 2: Does it make your your skin more, more supple or

229
00:11:39,040 --> 00:11:39,520
Speaker 2: less itchy?

230
00:11:39,640 --> 00:11:44,880
Speaker 3: If you've got an issue and then you need usually

231
00:11:46,320 --> 00:11:50,120
Speaker 3: you need six weeks. If you talk about anti aging products,

232
00:11:50,240 --> 00:11:52,920
Speaker 3: you probably need six weeks to see real you know,

233
00:11:53,240 --> 00:11:55,880
Speaker 3: wrinkle reduction or h spot reduction.

234
00:11:57,000 --> 00:11:58,240
Speaker 2: So you have to and you have.

235
00:11:58,240 --> 00:12:00,000
Speaker 1: To do several You're like a beauty junky.

236
00:12:00,360 --> 00:12:01,280
Speaker 2: Are a beauty junkie.

237
00:12:01,720 --> 00:12:04,880
Speaker 3: You know, I run the number one beauty company in

238
00:12:04,920 --> 00:12:07,360
Speaker 3: the world, and so I have to be a beauty junkie.

239
00:12:07,400 --> 00:12:09,439
Speaker 2: And but it's fascinating because it's.

240
00:12:10,160 --> 00:12:13,120
Speaker 3: Uh, you know, I guess you you use beauty products.

241
00:12:13,880 --> 00:12:15,880
Speaker 3: It's a it's a very nice little treat that you

242
00:12:16,240 --> 00:12:17,600
Speaker 3: take care of yourself every day.

243
00:12:18,280 --> 00:12:21,520
Speaker 2: It's talk a lot. We talk a lot about self betterment. Today.

244
00:12:21,840 --> 00:12:24,720
Speaker 2: People are very much into fitness, into you know, making

245
00:12:24,760 --> 00:12:28,000
Speaker 2: sure they they look better, feel better, and and.

246
00:12:28,000 --> 00:12:31,400
Speaker 3: Beauty products are really part of that of that routine

247
00:12:31,440 --> 00:12:32,000
Speaker 3: and that spirit.

248
00:12:32,040 --> 00:12:32,920
Speaker 2: So I love it.

249
00:12:32,960 --> 00:12:35,560
Speaker 1: And male skincare has actually come quite a long way.

250
00:12:35,880 --> 00:12:38,240
Speaker 1: Is that the biggest support? What's been your biggest surprise

251
00:12:38,480 --> 00:12:41,520
Speaker 1: of how I guess beauty has changed the last ten years.

252
00:12:41,320 --> 00:12:45,360
Speaker 3: What's the biggest transformation happening in beauty is what we

253
00:12:45,440 --> 00:12:49,960
Speaker 3: call beauty tech is the help of technology to augment

254
00:12:50,080 --> 00:12:54,480
Speaker 3: the performance of beauty products, either through diagnosis or through

255
00:12:54,600 --> 00:12:57,920
Speaker 3: even personalized made to measure beauty products. And that's probably

256
00:12:57,960 --> 00:12:58,720
Speaker 3: the future of beauty.

257
00:12:58,880 --> 00:13:01,960
Speaker 1: So is this AI. You spend an enormous amount right

258
00:13:02,000 --> 00:13:05,280
Speaker 1: of your sales in marketing but also developing like R

259
00:13:05,280 --> 00:13:06,880
Speaker 1: and D, Yeah, I think thirty percent.

260
00:13:07,240 --> 00:13:10,199
Speaker 3: Well, we're like, we spend one billion in R and D,

261
00:13:10,320 --> 00:13:14,840
Speaker 3: three percent of out and over in different uh you know,

262
00:13:15,800 --> 00:13:19,440
Speaker 3: A and P advertising and promotion. It depends on the countries,

263
00:13:19,960 --> 00:13:22,560
Speaker 3: somewhere between twenty five and thirty five percent, depending on

264
00:13:22,600 --> 00:13:25,360
Speaker 3: the on the countries and the number of categories we

265
00:13:25,400 --> 00:13:28,240
Speaker 3: have to animate. But we also spend more than one

266
00:13:28,280 --> 00:13:31,400
Speaker 3: billion euro every year in tech, in technology, and that's

267
00:13:31,400 --> 00:13:35,240
Speaker 3: where that's our pledge to become the leader of beauty tech.

268
00:13:35,320 --> 00:13:39,560
Speaker 3: And and here indeed we use AI. We use AI

269
00:13:39,679 --> 00:13:44,360
Speaker 3: to augment our researchers to invent new ways to formulate

270
00:13:44,679 --> 00:13:49,280
Speaker 3: products to go faster. We use AI to indeed to

271
00:13:49,520 --> 00:13:55,200
Speaker 3: have to provide the best advice color marching, color matching, skincare,

272
00:13:55,320 --> 00:13:57,640
Speaker 3: skincare diagnosis is very important in the end. You know,

273
00:13:58,440 --> 00:14:01,440
Speaker 3: consumers are passionate about beauty. Beauty is the number one

274
00:14:01,440 --> 00:14:06,520
Speaker 3: topic of conversation on TikTok for example. It's something that

275
00:14:06,720 --> 00:14:10,040
Speaker 3: passionates people. But it's a jungle out there. There's so

276
00:14:10,080 --> 00:14:13,120
Speaker 3: many products, so you need to help people choose. So

277
00:14:13,240 --> 00:14:16,559
Speaker 3: curation is a very important part. And to help people

278
00:14:16,600 --> 00:14:19,600
Speaker 3: make the right choices, you need some sort of either

279
00:14:19,920 --> 00:14:23,840
Speaker 3: diagnosis or virtual try on so that they see which

280
00:14:23,920 --> 00:14:25,680
Speaker 3: which shades are gonna fit better.

281
00:14:25,960 --> 00:14:26,640
Speaker 2: Same for hair.

282
00:14:26,760 --> 00:14:29,680
Speaker 3: So technology is a great help not only to create

283
00:14:29,720 --> 00:14:32,560
Speaker 3: new products, but also to make consumers happier about the products.

284
00:14:32,680 --> 00:14:35,240
Speaker 1: So how does it fit with something like ASoP, which

285
00:14:35,280 --> 00:14:37,560
Speaker 1: you buy, you know, you bought for a significant amount

286
00:14:37,560 --> 00:14:39,440
Speaker 1: of money, but expect to grow it much more, which

287
00:14:39,480 --> 00:14:42,280
Speaker 1: is much more traditional high end premium brand.

288
00:14:42,640 --> 00:14:44,320
Speaker 3: I think it's a brand, and of course it's a

289
00:14:44,320 --> 00:14:48,280
Speaker 3: brand that's a natural ingredient space brand, so it taps

290
00:14:48,320 --> 00:14:51,360
Speaker 3: into many of the ascending trends. So it's a beautiful brand,

291
00:14:51,360 --> 00:14:54,920
Speaker 3: fantastically developed by the teams that are in charge and

292
00:14:55,240 --> 00:14:58,360
Speaker 3: whom we're going to be welcoming at Loyal and a

293
00:14:58,760 --> 00:15:01,560
Speaker 3: great experiential brand. So very very excited about it, and

294
00:15:01,880 --> 00:15:04,440
Speaker 3: as it's a brand that just has two stores in

295
00:15:04,520 --> 00:15:07,360
Speaker 3: China and is not present in travel retail, we have

296
00:15:07,400 --> 00:15:09,080
Speaker 3: lots of growth opportunities for it.

297
00:15:09,160 --> 00:15:11,840
Speaker 1: So you really try the products or use the products

298
00:15:11,840 --> 00:15:12,840
Speaker 1: before any acquisition.

299
00:15:13,040 --> 00:15:14,800
Speaker 2: Of course I try.

300
00:15:14,880 --> 00:15:18,480
Speaker 3: I try the actually, as far as as was concerned,

301
00:15:18,520 --> 00:15:22,760
Speaker 3: I tried it before there was even a possibility to

302
00:15:22,800 --> 00:15:25,640
Speaker 3: acquire it. But yeah, you have to try the products.

303
00:15:25,640 --> 00:15:28,840
Speaker 3: Where of course, beyond trying, when we make any acquisition,

304
00:15:28,960 --> 00:15:33,120
Speaker 3: we have the formulas analyzed by our labs making sure

305
00:15:33,200 --> 00:15:35,960
Speaker 3: that they are both you know, good products, that they

306
00:15:36,000 --> 00:15:38,160
Speaker 3: are true to what they say, which is not always

307
00:15:38,200 --> 00:15:40,440
Speaker 3: a case for some of the indie brands, and that

308
00:15:40,520 --> 00:15:44,360
Speaker 3: they are taking all the regulatory boxes you know, in

309
00:15:45,080 --> 00:15:48,480
Speaker 3: authorized ingredients. And then of course we try it because

310
00:15:49,480 --> 00:15:51,080
Speaker 3: you need to know, You need to know and then

311
00:15:51,360 --> 00:15:54,160
Speaker 3: and you need to love the brands you work for.

312
00:15:54,680 --> 00:15:57,200
Speaker 1: What kind of leader are you? How do you define yourself?

313
00:15:57,240 --> 00:15:59,080
Speaker 1: How would others define you?

314
00:15:59,480 --> 00:16:00,400
Speaker 2: I'm a compar editor.

315
00:16:00,880 --> 00:16:05,400
Speaker 3: I love sports, and you know, I try to be

316
00:16:05,880 --> 00:16:09,160
Speaker 3: demanding for myself and demanding for everybody because we have,

317
00:16:09,320 --> 00:16:13,720
Speaker 3: you know, big goals to achieve being number one and

318
00:16:13,720 --> 00:16:16,880
Speaker 3: increasing our gap with competition is not that easy, so

319
00:16:16,960 --> 00:16:19,640
Speaker 3: you need to be really passionate about it. And I

320
00:16:19,680 --> 00:16:23,640
Speaker 3: would say, I'm I believe a lot in the power

321
00:16:23,640 --> 00:16:27,360
Speaker 3: of the team. I'm a I believe in the collective.

322
00:16:28,280 --> 00:16:31,160
Speaker 3: You know, For all my youth I was doing collective

323
00:16:31,160 --> 00:16:35,560
Speaker 3: sports and today I'm a passionate cyclist. And some people

324
00:16:35,600 --> 00:16:39,800
Speaker 3: think cyclist cyclism or biking is a is a solo sport,

325
00:16:39,800 --> 00:16:41,480
Speaker 3: but actually if you watch the tool the fonts, you'll

326
00:16:41,520 --> 00:16:44,080
Speaker 3: see it's it's really a team sport where you have

327
00:16:44,120 --> 00:16:45,240
Speaker 3: to protect yourself from the.

328
00:16:45,200 --> 00:16:46,560
Speaker 2: Wind, help each other.

329
00:16:46,600 --> 00:16:50,560
Speaker 3: So I like to build teams that are complementary empower them.

330
00:16:50,840 --> 00:16:53,600
Speaker 3: I listen a lot to what my teams have to

331
00:16:53,640 --> 00:16:57,240
Speaker 3: say and build complementarity. So I like to surround myself

332
00:16:57,360 --> 00:17:00,480
Speaker 3: with very strong people that may be strong than I

333
00:17:00,520 --> 00:17:03,960
Speaker 3: am in some in their particular area, and we work

334
00:17:04,040 --> 00:17:09,720
Speaker 3: together really at making this great company continue to succeed.

335
00:17:09,840 --> 00:17:12,320
Speaker 1: So what do you think is the secret sauce of

336
00:17:12,400 --> 00:17:15,840
Speaker 1: Lorayanne to you know, always keep this competitive advantage?

337
00:17:15,880 --> 00:17:17,920
Speaker 3: Well, I think you know, if I take the top

338
00:17:17,920 --> 00:17:21,240
Speaker 3: three hundred managers of Loreal, the average ten year is

339
00:17:21,240 --> 00:17:23,959
Speaker 3: eighteen years in the company, So you have this very

340
00:17:24,040 --> 00:17:26,679
Speaker 3: strong corpus of people that share the same passion and

341
00:17:26,760 --> 00:17:29,600
Speaker 3: the same way to do business. We constantly bring in

342
00:17:29,640 --> 00:17:33,520
Speaker 3: new people, even at higher level, to rejuvenate the blood.

343
00:17:33,840 --> 00:17:38,119
Speaker 3: But we have this very strong culture and this it's

344
00:17:38,359 --> 00:17:42,800
Speaker 3: indeed the secret Sauce is this. At all level, you

345
00:17:42,880 --> 00:17:48,919
Speaker 3: have very passionate, competitive people that love beauty and that

346
00:17:49,000 --> 00:17:51,840
Speaker 3: have fun. I think part of the secret is that

347
00:17:51,880 --> 00:17:52,640
Speaker 3: we have fun.

348
00:17:54,600 --> 00:17:57,960
Speaker 1: Coming up. Nicolar Hieronymus on the challenges of going green,

349
00:17:58,359 --> 00:18:01,680
Speaker 1: including the company's target to use one hundred percent recycled

350
00:18:01,680 --> 00:18:13,240
Speaker 1: plastic by the end of the decade. Nicola Jeronimus oversees

351
00:18:13,359 --> 00:18:17,200
Speaker 1: a vast portfolio of beauty products with a constantly changing

352
00:18:17,280 --> 00:18:21,159
Speaker 1: landscape of science and environmental demands. He tells me how

353
00:18:21,200 --> 00:18:24,199
Speaker 1: L'Oreal is reacting to the climate crisis and how the

354
00:18:24,320 --> 00:18:32,399
Speaker 1: challenge is reshaping what it means to be a chief executive. Nikra,

355
00:18:32,640 --> 00:18:34,840
Speaker 1: you talk about this big sense of purpose. What does

356
00:18:34,840 --> 00:18:36,200
Speaker 1: that mean for sustainability.

357
00:18:36,800 --> 00:18:40,200
Speaker 3: We started working on sustainability topics in the early two thousands.

358
00:18:40,240 --> 00:18:45,160
Speaker 3: We had our first Sharing Beauty with All program in

359
00:18:45,520 --> 00:18:51,000
Speaker 3: twenty thirteen, and that led us to reduce our our

360
00:18:51,119 --> 00:18:55,160
Speaker 3: CO two emissions by ninety percent. Whilst increasing our production

361
00:18:55,240 --> 00:18:57,879
Speaker 3: by forty five percent, so we've really managed to decouple

362
00:18:58,880 --> 00:19:01,480
Speaker 3: COO two emissions from growth. So we are of course

363
00:19:02,960 --> 00:19:06,959
Speaker 3: enticing and stimulating our suppliers who also need to do

364
00:19:07,000 --> 00:19:11,720
Speaker 3: their sustainability transformation, to do it as fast as possible

365
00:19:11,760 --> 00:19:14,680
Speaker 3: because they are our impacts. But also we are investing

366
00:19:14,760 --> 00:19:21,240
Speaker 3: to help consumers contribute because in the end, for example,

367
00:19:21,280 --> 00:19:24,960
Speaker 3: if you talk about packaging or plastic, the best way

368
00:19:25,040 --> 00:19:29,280
Speaker 3: to reduce plastic is to convert as many consumers as

369
00:19:29,320 --> 00:19:31,440
Speaker 3: possible to refills and.

370
00:19:31,480 --> 00:19:33,560
Speaker 2: All our new fragrances.

371
00:19:33,600 --> 00:19:36,439
Speaker 3: You probably saw the new Proda paradox, which is a

372
00:19:36,440 --> 00:19:39,560
Speaker 3: great success. By the way, there is the fragrance, but

373
00:19:39,600 --> 00:19:41,600
Speaker 3: then you can buy refills which are much slighter in

374
00:19:41,960 --> 00:19:44,639
Speaker 3: glass and packaging, so you keep your original bottle on. Today,

375
00:19:44,920 --> 00:19:48,280
Speaker 3: twenty five percent of our lockx portfolio is refillable, so

376
00:19:48,359 --> 00:19:52,280
Speaker 3: now it's about conn you know, convincing consumers to change.

377
00:19:52,480 --> 00:19:56,800
Speaker 3: We're also launching products that are non rinsed products to

378
00:19:57,240 --> 00:20:01,080
Speaker 3: avoid water consumptions, and we are in our advertise again

379
00:20:01,280 --> 00:20:03,960
Speaker 3: trying to convince consumer to reduce their water consumption. So

380
00:20:04,000 --> 00:20:07,000
Speaker 3: it's across the whole supply chain. We have to act.

381
00:20:07,240 --> 00:20:08,200
Speaker 1: So what's the hardest.

382
00:20:08,560 --> 00:20:12,040
Speaker 3: Yeah, well, there are many, many things that are difficult.

383
00:20:12,200 --> 00:20:17,120
Speaker 3: For example, if I take plastic, we've committed to have

384
00:20:17,320 --> 00:20:22,680
Speaker 3: one hundred percent recycled plastic by twenty thirty. Today, the

385
00:20:22,720 --> 00:20:26,600
Speaker 3: availability of recycled plastic is not big enough for us

386
00:20:26,680 --> 00:20:29,200
Speaker 3: to transform everything. We have eighty percent of our PT,

387
00:20:29,359 --> 00:20:32,440
Speaker 3: but for other parts of the plastic it's not yet available.

388
00:20:32,480 --> 00:20:36,639
Speaker 3: So we are co investing and we are investing were

389
00:20:36,640 --> 00:20:39,840
Speaker 3: our own VC in new technologies that.

390
00:20:39,880 --> 00:20:42,400
Speaker 2: Will provide ways to recycle plastic.

391
00:20:42,520 --> 00:20:47,680
Speaker 3: So some things have not been made available yet technologically,

392
00:20:47,720 --> 00:20:51,240
Speaker 3: but I guess I believe in human creativity and innovation

393
00:20:51,600 --> 00:20:55,119
Speaker 3: that provides us will provide us for solutions. But packaging

394
00:20:55,840 --> 00:21:00,440
Speaker 3: is one issue. And of course we work continue usually

395
00:21:00,480 --> 00:21:04,360
Speaker 3: on water, both on our own consumption, but that's kind

396
00:21:04,359 --> 00:21:07,800
Speaker 3: of I mean, quite easy to do, but also on

397
00:21:08,320 --> 00:21:09,600
Speaker 3: changing consumers' habits.

398
00:21:09,680 --> 00:21:11,480
Speaker 1: Is there a segment of the consumer that's more in

399
00:21:11,560 --> 00:21:15,480
Speaker 1: tune with with maybe buying products that seem greener.

400
00:21:16,000 --> 00:21:22,280
Speaker 3: Well, the younger generations are more, of course pay more

401
00:21:22,320 --> 00:21:26,240
Speaker 3: attention to sustainability, uh, and so they are looking at

402
00:21:26,240 --> 00:21:29,399
Speaker 3: brands that are that are greener. But you have to

403
00:21:29,400 --> 00:21:33,159
Speaker 3: make sure you're authentic because they hate green washing. But

404
00:21:33,320 --> 00:21:37,280
Speaker 3: what is very important to remember is that none of them,

405
00:21:37,400 --> 00:21:41,040
Speaker 3: whether they're young or not, will ever sacrifice product quality

406
00:21:41,040 --> 00:21:44,800
Speaker 3: and efficacy to sustainability, which is why, you know, part

407
00:21:44,800 --> 00:21:48,119
Speaker 3: of the big transformation of our r and I where

408
00:21:48,400 --> 00:21:52,320
Speaker 3: there's this billion euro we spend every year, most of

409
00:21:52,359 --> 00:21:58,720
Speaker 3: it is spent on transforming our formulas from petrochemicals to

410
00:21:59,680 --> 00:22:04,840
Speaker 3: buy sourced ingredients and green sciences, but without losing the efficacy.

411
00:22:04,880 --> 00:22:07,280
Speaker 3: And I think that in the future, if we talk

412
00:22:07,320 --> 00:22:10,760
Speaker 3: about competition, the winners will be and.

413
00:22:10,680 --> 00:22:12,199
Speaker 2: It's very difficult to achieve.

414
00:22:12,240 --> 00:22:16,119
Speaker 3: Those who can create products that are both green, effective

415
00:22:16,280 --> 00:22:18,399
Speaker 3: and safe. I know how hard it is, so I

416
00:22:18,400 --> 00:22:20,760
Speaker 3: don't think many that do not invest so much in

417
00:22:20,840 --> 00:22:22,000
Speaker 3: research will manage to do it.

418
00:22:22,080 --> 00:22:24,439
Speaker 1: Where will you be in five years? Where will Loreal

419
00:22:24,520 --> 00:22:25,520
Speaker 1: be in five years?

420
00:22:25,600 --> 00:22:28,760
Speaker 3: Well, you know, in five years, if two thousand and thirty,

421
00:22:29,440 --> 00:22:32,520
Speaker 3: let's talk twenty thirty, you know, the market should be

422
00:22:33,520 --> 00:22:38,840
Speaker 3: maybe three hundred and eighty or ninety billion euros, so

423
00:22:39,119 --> 00:22:43,359
Speaker 3: loyal I hope that Loyal will be above sixty billion

424
00:22:43,400 --> 00:22:49,800
Speaker 3: euros and continue continuously growing. But more importantly, in the end,

425
00:22:49,800 --> 00:22:51,679
Speaker 3: you know, I consider that My role, of course, is

426
00:22:51,720 --> 00:22:54,960
Speaker 3: to grow the business, but it's a legacy. I'm the

427
00:22:55,000 --> 00:22:57,840
Speaker 3: six CEO in one hundred and fourteen years, and my

428
00:22:58,200 --> 00:23:03,359
Speaker 3: objective is to leave the company in even greater shape

429
00:23:03,400 --> 00:23:05,320
Speaker 3: than it was. And maybe one of the things that

430
00:23:05,359 --> 00:23:08,000
Speaker 3: have changed, if I could end with that, is that probably,

431
00:23:08,400 --> 00:23:10,879
Speaker 3: you know, a couple of years ago, being a CEO

432
00:23:11,080 --> 00:23:14,320
Speaker 3: was about beating the others, was winning the game against

433
00:23:14,359 --> 00:23:16,400
Speaker 3: the others. We still have to gain and to win

434
00:23:16,520 --> 00:23:18,560
Speaker 3: and to win share, but more and more we have

435
00:23:18,640 --> 00:23:20,600
Speaker 3: to work and that goes back to it ties back

436
00:23:20,640 --> 00:23:23,640
Speaker 3: to the collective idea. We have to work together. And

437
00:23:24,359 --> 00:23:27,639
Speaker 3: I like the idea that sometimes I take my phone

438
00:23:27,960 --> 00:23:30,400
Speaker 3: and I will call the CEO of one or two

439
00:23:30,440 --> 00:23:34,359
Speaker 3: of our competitors to work together at creating solutions for

440
00:23:34,400 --> 00:23:37,800
Speaker 3: the world. We've launched this consortium to create the Ecoscore,

441
00:23:38,040 --> 00:23:41,520
Speaker 3: which would be an international standard for products in terms

442
00:23:41,560 --> 00:23:44,560
Speaker 3: of how sustainable they are for consumers to be able

443
00:23:44,560 --> 00:23:47,160
Speaker 3: to make the right choices. And I like when we

444
00:23:47,720 --> 00:23:50,640
Speaker 3: as an industry we not only make sure we make

445
00:23:50,720 --> 00:23:53,479
Speaker 3: people look good, feel better, but also we work together

446
00:23:53,560 --> 00:23:55,199
Speaker 3: having positive impact on the planet.

447
00:23:55,840 --> 00:23:57,800
Speaker 1: Nikola Ionimus, thank you so much for joining us.

448
00:23:57,960 --> 00:23:59,639
Speaker 2: Thank you very much, well see it was a pleasure