Daily chemical giant L'Oreal brand wants to buy direct water

£ 652 million Brings BodyShop More Than 2000 Retail Stores

L'Oréal wants to buy direct water

(Reporter / Xie Sijia) Following P&G and Unilever’s focus on direct sales, L'Oreal Group, the global cosmetics production giant, has also shown strong interest in direct sales in recent days. Recently, L'Oreal confirmed to the outside world that it proposed a cash receipt of 652 million pounds.

The Board of Directors of the two parties had reached an agreement on the relevant conditions for the purchase of all the shares of Body Shop (also translated as “Body Shop”).

In other words, BodyShop, which has more than 2,000 retail outlets worldwide, will become a laboratory for L'Oreal to explore new marketing methods. As the widely-watched direct sales model has been included in BodyShop's next-step development plan, the industry believes that L'Oreal is very likely to adopt new acquisition targets and prudently test the direct marketing market.

Although L’Oréal China has always been concerned about the development of the direct sales model in China, there is currently no evidence that the group intends to introduce this plan into mainland China.

BodyShop is listed on the London Stock Exchange and has 2,085 cosmetic retail stores in 54 countries and territories. Its exclusive distribution and its complementarity with L'Oreal in the cosmetics and personal care markets are self-evident.

At present, the tender offer has yet to be approved by the relevant regulatory agencies. However, BodyShop chairman Adrian Bellamy has been eager to reveal that the combination of L'Oréal and BodyShop will strategically advance the latter through franchise stores, direct sales and e-commerce. To achieve a growth plan.

According to industry analysis, these mentioned retail formats are all new and emerging marketing tools. In fact, in the past few years, L'Oreal Group has set up a Lancome store in an emerging market like China. However, L'Oreal Group emphasized that BodyShop will now operate as an independent entity under L’Oréal Group and will be directly responsible for the upcoming CEO, An Gong. Other brands under L’Oréal Group will continue to distribute through their existing channels.

The industry believes that L'Oreal Group will operate BodyShop independently and will ensure that it will try its direct sales model while not affecting its existing brand operations.