Cosmetics

Table of contentsI. Introducing Armani II. Introducing L’Oréal III. New Range IV. Legal V. Distribution VI. Suppliers VII. Packaging

About Armani

Giorgio Armani S.p.A. is an Italian fashion house founded by Giorgio Armani which designs, manufactures, distributes and retails haute couture, ready-to-wear, leather goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and home interiors. The brand markets these products under several labels,from the most expensive to the most accessible.: Armani Prive, Giorgio Armani, Emporio Armani, Armani Collezioni, AJ | Armani Jeans, AX | Armani Exchange. The brand utilizes the association of the Armani name with high-fashion, benefiting from its prestige in the fashion industry. By the end of 2005, estimated sales of the company were around $1.69 billion.

Giorgio Armani is planning, in collaboration with Emaar Properties, a chain of luxury hotels and resorts in several big cities including Milan, Paris, New York, London, Hong Kong, Los Angeles, Tokyo, Shanghai, Seoul, Dubai.The company already operates a range of cafés worldwide, in addition to a bar and nightclub.

Brand philosophy

The Giorgio Armani fashionhouse, like many other fashion houses, has been built

primarily on the unique personality and identity ofGiorgio Armani himself.

The brand takes on the identityof the founder through the designs created.

Though thisaspect of the fashion industry provides fashion houses with a

strong sense of differentiation that can be conveyed in atangible and visual form, it also poses a serious threat. Whenan entire brand and fashion house are built on the basis of the

founders' personality and identity, it becomes a majorchallenge to keep the brand going after the demise of the

founder, something many of the fashion houses have realizedin the recent past.

Armani Cosmetics

The beauty brand by Giorgio Armani features makeup, skin care, perfumes, and colognes. It is produced and distributed by the luxury division of L'Oreal, with which Giorgio Armani has a long-term partnership agreement. It is available at many department stores worldwide and has very few boutiques.

Numbers about the market

About Cosmetic marketing

Companies use media and entertainment to promote theirproducts quickly and effectively.

Using the influence of popular television shows,movies, and other forms of entertainments to market their product is becoming an

increasingly prevalent strategy in promoting cosmetics to potential consumers.

Globally, the cosmetic industry continues to develop, and the Internet also allows thisindustry to further extend its reach. Many cosmetic companies will sell their productsonline, which can make the process of choosing and purchasing products convenientand easy. In addition, automated kiosks have emerged as new avenues for cosmetic

supply and consumption.

Similar to a vending machine, these kiosks provide anotherway for cosmetic companies to retail and sell their products.

About L’Oréal

The L'Oréal Group is a French cosmet ics and beauty company, headquartered in Clichy, Hauts-de-Seine.

It is the world's largest cosmetics company, and has a registered office in Paris. It has developed activities in the field of cosmetics, concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatology, toxicology, tissue engineering, and biopharmaceutical research fields and is the top nanotechnology patent-holder in the United States.

A promise of reliability to consumers, respect for human and environmental diversity, ethical commitments L’Oréal has based its innovation strategy on a platform of fundamental values, shared by all its teams around the world.

L'Oréal's Research and Innovation teams apply the principles of sustainable and responsible innovation on a daily basis. Listening to the expectations of consumers, they are committed to the pursuit of ethical beauty that respects diversity. In its research activities, the group is particularly vigilant in five areas: human health (employees, consumers, professionals), environmental respect, ethics, fair trade and consideration of the social and societal impact of innovation

New Range

According to our studies, it can be interested to create a range of cosmetics for Hotels and travelers.

A travel pack, an hotel pack

-Shower gel -Shampoo

-Conditionner -Soap

-Cleansing

Main value of the pack

Provide an Armani pack with all primary needs care.

Haute Couture travel by Armani

The main fragrances of the cosmetics is the Myrrh Imperal

Shower gel To hydrating and refreshing skin care. The caring formula with Ocean Minerals and an uplifting scent, cleanses and moisturises your skin.

Ingredients: Aqua, Sodium Laureth Sulfate, Cocamidopropyl Betaine, PEG-7 Glyceryl Cocoate, Parfum, Butyl Acrylate/Ethyltrimonium Chloride, Methacrylate/Styrene Copolymer, Silver Citrate, Sodium Chloride, Glycerin, PEG-200 Hydrogenated Glyceryl Palmate, PEG-40 Hydrogenated Castor Oil, Polyquaternium-7, Glycol Distearate, Citric Acid, Laureth-4, Benzophenone-4, Sodium Benzoate, Sodium Salicylate, Methylparaben, Propylparaben, Linalool, Limonene, Coumarin. Perfume

30ml

Shampoo Cleans your hair with a clean fresh scent that lastsLeaves you with a clean, fresh, scent that lasts and soft, manageable hair. Works best with Classic Clean Conditioner. Gentle formula suitable for everyday use.

Ingredients : Pyrithione zinc 1%, water, sodium laureth sulfate, sodium lauryl sulfate, cocamide MEA, zinc carbonate, glycol distearate, dimethicone, fragrance, cetyl alcohol, guar hydroxypropyltrimonium chloride, magnesium sulfate, sodium benzoate, magnesium carbonate hydroxide, ammonium laureth sulfate, benzyl alcohol, sodium chloride, methylchloroisothiazolinone, methylisothiazolinone, sodium xylenesulfonate. Perfume

30ml

Conditionner This anti-dandruff conditioner leaves your hair feeling clean, manageable and up to 100% dandruff free. Match it with Classic Clean Shampoo, which also has a gentle formula suitable for everyday use.

Ingredients: Pyrithione Zinc (0.5%, Anti Dandruff), Water, Stearyl Alcohol, Cetyl Alcohol, Stearamidopropyl Dimethylamine, Dimethicone, Glutamic Acid, Benzyl Alcohol, Phenoxyethanol, Fragrance, Methylparaben, Propylparaben, Citric Acid. Perfume30ml

Soap Care soap MILK with a caring formula enriched with valuable milk proteins gently cleanses your skin, leaving it noticeably soft and delicately per

Sodium Tallowate, Aqua, Sodium Cocoate, Sodium Palm Kernelate, Glycerin, Sine Adipe Lac, Octyldodecanol, Sodium Thiosulfate, Sodium Chloride, Tetrasodium EDTA, Tetrasodium Etidronate, Disteardimonium Hectorite, Benzyl Alcohol, Linalool, Citronellol, Limonene, Methyl Benzoate,fumed. Perfume

Cleansing Daily Essentials Sensitive 3in1 Micellar Cleansing Water cleanses deeply, removes make-up from face and eyes and moisturises in one step. It helps protect against the 3 main signs of sensitive skin when used together with a NIVEA® Sensitive care product:1. Redness2. Tightness3. Dryness

The caring formula with Dexpanthenol & Grape Seed Oil:Cleanses deeply thanks to its extra effective yet mild cleansing complexMoisturises and refreshes the skinIs free of parabens, colours and perfume

Ingredients : Aqua, PEG-40 Hydrogenated Castor Oil, Vitis Vinifera Seed Oil, Panthenol, Glyceryl Glucoside, Glycerin, Sorbitol, Decyl Glucoside, Poloxamer 124, Polyquaternium-10, Disodium Cocoyl Glutamate, Citric Acid, Sodium Chloride, Sodium Acetate, Propylene Glycol, 1,2-Hexanediol, Trisodium EDTA, Phenoxyethanol. Perfume

30 ml

Legal needs

Our target country : France European laws and regulations about cosmetics.

Limitations de certaines substances Certains colorants, agents conservateurs et filtres ultraviolets sont également interdits. Le règlement interdit l’utilisation des substances reconnues comme cancérogènes, mutagènes ou toxiques.

L'étiquetage

• le pays d’origine des produits importés; • le poids ou le volume du contenu au moment du conditionnement; • la date limite d’utilisation des produits conservés dans des conditions appropriées; • les précautions d’emploi, y compris pour les cosmétiques à usage professionnel; • le numéro de lot de fabrication ou la référence permettant d’identifier le produit; • la liste des ingrédients, c’est-à-dire toute substance ou mélange utilisé de façon

intentionnelle dans le produit au cours du processus de fabrication. La langue dans laquelle les informations sont rédigées est déterminée par l’État membre où le produit est mis à la disposition de l'utilisateur final.

We also find that 1328 ingredients prohibited in cosmetics products.

The most significant changes introduced by the new Cosmetics Regulation include: • Strengthened safety requirements for cosmetic products • Manufacturers need to follow specific requirements in the preparation of a

product safety report prior to placing a product on the market. • Introduction of the notion of “responsible person” • Only cosmetic products for which a legal or natural person is designated

within the EU as a “responsible person” can be placed on the market. The new Cosmetics Regulation allows the precise identification of the responsible person is and clearly outlines their obligations.

• Centralised notification of all cosmetic products placed on the EU market

• Manufacturers will need to notify their products only once – via the EU Cosmetic Products Notification Portal (CPNP).

• Introduction of reporting of serious undesirable effects (SUE) • A responsible person will have an obligation to notify serious undesirable

effects to national authorities. The authorities will also collect information coming from users, health professionals, and others. They will be obliged to share the information with other EU countries. More information on reporting of SUE.

• New rules for the use of nanomaterials in cosmetic products • Colorants, preservatives and UV-filters, including those that are

nanomaterials, must be explicitly authorised. Products containing other nanomaterials not otherwise restricted by the Cosmetics Regulation will be the object of a full safety assessment at EU level if the Commission has concerns. Nanomaterials must be labelled in the list of ingredients with the word “nano” in brackets following the name of the substance, e.g. “titanium dioxide (nano)”.

DIstribution

Hotel Pack

BtoB only in luxury hotels around Europe and France. Palaces, five stars hotels. Firstly launch in Armani Hotels Milano and Dubai

Travel Pack

Duty free, inflight catalogue. Partnership with flight companies such as fly emirates, qatar airways.

• Paris : Four Seasons Hôtel Georges V, Crillon, Le Bristol Paris ,Ritz paris, Hôtel Plazza Athénée,

Shangri La Hôtel, Le Meurice, LVMH sous son label « Cheval Blanc ». • Venise : Hôtel Danieli

• Barcelone : Le Méridien / Mandarin Oriental Barcelona

• Berlin : Le Ritz Carlton – Berlin • Vienne : Hôtel Impérial

• Londres : Claridge’s • St Petersburg : Grand Hôtel Europe

• Zurich : Hôtel Baur du Lac • Lisbonne : Lapa Palace

• Amsterdam : Amstel • Monte-Carlo : Hôtel Metropole Monte-Carlo

Potentials clients

Suppliers value chain

L’Oréal creates and develops solid and sustainable relationships with its suppliers around the world, based on trust, mutual interest and high standards. The group's purchasing policies are based on mutual commitments in the service

of (our) shared growth.

The purchasing teams play a major part in group performance. They focus on innovation, risk management and cost control and are directly tackling the major challenges of today.

150 suppliers from four purchasing domains (Raw Material, Packaging Material, Contract Manufacturing & Capital Expenditure) across the Asia Pacific region and nearly 60 staff from L’Oreal Asia Operation Divisions, L’Oreal China R&I and L’Oreal Europe Sourcing Center.

Various raw materials are used to make up the formulas used in production  : polymers, fats, natural products, perfumes, solar radiation filters, vitamins… L'Oréal buys from specialized suppliers who are involved in a constant process of quality and safety research. The Quality and Research teams are very much involved in guaranteeing the high quality of supplies and in finding new raw materials.

In order to equip and operate its production lines in 40 factories all over the world, L'Oréal joins forces with numerous specialized production equipment suppliers on a day-to-day basis (processing equipment, weighing equipment, washing equipment), packaging machines (fillers, labelers, distributors, regrouping machines, etc.) and industrial equipment (compressors, heaters, cooling units, palleting machines, fire safety). The Occupational Safety and Environmental teams look into equipment that will improve the environmental performance of the group, while maintaining a safe and health work place.

http://www.loreal.com/profiles/suppliers/our-sustainable-procurement-policy.aspx

Worldwide presence of L’Oréal

For the image of Armani L’Oreal is a big ally

This is the core business of L’Oreal

Using the Armani codes

A strong product quality management At every stage in the life of products the Quality teams ensure that the

standards that characterise the L’Oréal brand are complied with and achieved.

L’Oréal manufactures 85.9% of its products in its own plants, a strategy aimed at ensuring safety, quality and compliance with group’s values and ethics.

Packaging

Pure Design Armani, simple and classy. Black box with products inside

20 cm

16 cm

Haute Couture Travel

G A

-Shower gel -Shampoo

-Conditionner -Soap

-Cleansing

Why it will succeed?

The cosmetic market is a big opportunityfor Armani to make profits. In fact, men are

more and more using cosmetics.

Armani hasthe chance to already own a good cosmetic

brand for women, Armani Beauty.

They cantake advantage of their strong position on

the market to create a new range ofproducts.

have concurrenciesadvantages. Armani already proved that heis a master in market penetration, so why

wouldn’t it work with the travel and hotel pack?