The strategy of selling online by the natural cosmetics group L'Occitane (2006)

Abstract

It was decided to focus this topic on the cosmetics market as there is a certain passion for this field and the professional ambition is common, as there is an interest to eventually become a part of the cosmetics market. This is a dynamic market, which offers, many prospects in terms of innovations and behavioral studies. The choice to focus this study on the group L'Occitane was evident, firstly because it has faithful consumers, and secondly because it is an original concept that is a native of France.

L'Occitane presents a unique business model. The group has positioned itself as a major player both in Europe and worldwide, with its range of highly coveted cosmetics 'Naturals'. In addition, L'Occitane offers users the option of ordering online via their website. In doing so they are moving with the current, namely participating in the evolution of new technologies and electronic commerce. What are the marketing or strategic impacts of L'Occitane diversifying its distribution network? To answer this, first there will be a study on the cosmetics market and the evolution of electronic commerce. Then, there will be a more precise analysis on the concept of L'Occitane, and the impact generated by the creation of its website. This will be illustrated with remarks on the information gathered from interviews, literature searches, etc.

Cosmetics are called "natural" and for their part are still very present on the French market, with less than 1% of these products that is sold to date.However, this aesthetic universe "of old-style", is very trendy and continues to grow thanks to various media campaigns devoted to it (product testing of the UFC Que Choisir, Special Envoy ). In general, many consumers of cosmetics who praise a new conception of beauty and who develop a need for authenticity, or simply a desire for a return to basics.

Distance selling via the web in the cosmetics sector is buzzing. Although direct sales still account to date only a small percentage, of the online sales industry grew and became widespread. A trend that retailers, brands and trademarks,which some brands now include in their sales and marketing strategy. The results of the TNS Sofres barometer, published in October 2005, show that the beauty products are increasingly the preferred choice in online shopping, the fastest growth among families it has observed. Thus, from a sample of 10 000 people, 27% said they had bought in 2005, the last six months, beauty products online, against 20% in 2004.

For the record, the United States market for e-beauty in 2004 was estimated at 1.52 billion, according to the study of Internet Retailer in June 2005. This success is due to the fact that the Internet provides comprehensive answers to clients on a complex area, punctuated by highly technical innovations that consumers often find it difficult to understand. Thus, the Internet is a point of contact for consumers to go look for information and marks an opportunity to inform and create a stronger bond with their client. Electronic commerce or e-commerce is all about business transactions using the Internet as a means of control. It has grown considerably in recent years.

Tags: online sales; cosmetic products; case study natural cosmetics group L'Occitane; marketing strategy;