Cost-reduction measures in cosmetics
Richard Matalon, country managing director of L’Oreal Romania, said half of the cost-containment measures would have been put in place sooner or later, but the tough economic challenges had determined the company to have a more cautious approach.
L’Oreal Romania has thus followed some strategic cost-management lines.
“Above all, L’Oreal’s top objective is to innovate, whether it’s economic crisis or not. We view crisis as an opportunity to achieve objectives in a shorter amount of time. Therefore, since the beginning of this year, our divisions have been very lucrative in terms of new products launched. We also have promotions and we save our media spending for the main product categories”, said Matalon.
Another top cosmetics company, Oriflame Romania, has put in place a broad cost-reduction process after 2009 budget was passed, which included: renegotiation of rents, reassessment of the distribution system, reduction of supply costs, and relocation of costs on consumer interaction areas, reduction of investments in conventional advertising, shifting communication to online and marketing direct.
L’Oreal Romania has thus followed some strategic cost-management lines.
“Above all, L’Oreal’s top objective is to innovate, whether it’s economic crisis or not. We view crisis as an opportunity to achieve objectives in a shorter amount of time. Therefore, since the beginning of this year, our divisions have been very lucrative in terms of new products launched. We also have promotions and we save our media spending for the main product categories”, said Matalon.
Another top cosmetics company, Oriflame Romania, has put in place a broad cost-reduction process after 2009 budget was passed, which included: renegotiation of rents, reassessment of the distribution system, reduction of supply costs, and relocation of costs on consumer interaction areas, reduction of investments in conventional advertising, shifting communication to online and marketing direct.