L'oreal Bb Cream

1. Introduction

BB cream stands for blemish balm, blemish base or beauty balm. It is a cosmetic product used and sold mainly in Asia although internationaly beauty brands are increasingly introducing these types of products on the Western markets.

Currently BB creams are the latest beauty buzzword for the Hollywood hotlist. Like the beauty equivalent of a brand new iPhone, BB creams are multi-functional products that harness smart new technology and ingredients so that one may replace the serum, moisturiser, primer, foundation and sun block with only one all-in-one product.

BB creams originated in Germany where a dermatologist gave it to her clients who had undergone laser treatments, which left the skin sensitised and vulnerable to the sun. BB creams then quickly became popular in Korea and all across Asia in the mid-90’s and most recently amongst A-listers and make-up artists for their amazing skin nourishing benefits, which also leave skin primed and with a healthy glow.

2. International Market

Exhibit 1- Cosmetics net sales by geographic zone

Source: L’Oreal Half-Year Financial Report (June 30th 2012)

According to the half-year Financial Report published by L’Oreal on in June 2012, 39% of all cosmetic sales are attributable to new markets which include Pacific Asia, Eastern Europe, Latin America and Africa and Middle East. Taking a closer glance at the 2012 figures we observe an increase of 2.7% in the Eastern European market.

According to the same report, Garnierr BB Cream Miracle Skin Perfector is continuing on the upward trend with a spectacular success in Europe. Moreover, the Eastern European market has returned to growth thanks to the new BB cream, which proves that the introduction of the BB Cream was a strategic move for the L’Oreal company in the region.

3. Romanian Market

The beauty and personal care products have showns growth both in 2011 and 2012 continuing the expansion registered in the last years. The beauty and care markets in Romania were estimated at over 950 Million EUR in 2011 and the forecast of the sector are more than optimistic. The increasing trend of the sector is expected to continue in the next years based on the opening of new stores, new brands and the fact that consumers will be better informed.

The beauty and personal care in Romania is dominated by the big multinationals such as L’Oreal, Beiersdorf and Procter and Gamble. The multinationals companies hold 85% of the market, in terms of volume, while the Romanian producers suchs as Farmec, Elmiplant and Genmar have a share of 15%.

The sales of cosmetics and personal care products in