Why Does L’Oreal Want To Acquire The Skincare Brand, Société des Thermes de Saint-Gervais-les-Bains?

July 19th, 2016 by Trefis Team
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L’Oreal has made an offer to France-based family owned Rivadis Group to acquire Société des Thermes de Saint-Gervais-les-Bains, the spa group situated in Mont-Blanc, and the license to use the Saint-Gervais Mont-Blanc beauty brand. The Saint-Gervais Mont-Blanc brand is known to produce skincare goods with the help of the thermal spring water from Mont Blanc and other natural extracts. The products are devoid of harmful chemicals such as parabens or phenoxyethanol. Every year, travelers visit France’s Les Thermes de Saint-Gervais to bathe in the natural waters which are said to possess certain health benefits.

The recent trends in the beauty industry indicate that along with the awareness of the harmful effects of chemicals, consumers are increasingly leaning towards natural and organic beauty products. Hence a brand such as this will definitely help L’Oreal grow further in the skincare segment where it currently enjoys around 12% market share–the largest share among all beauty companies. Around 30% of L’Oreal’s topline growth comes from skincare.

lrlcy skincare share

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for L’Oreal