L’Occitane en Provence segmentation and competitors

Market Competition

In cosmetics, every brand has its competitors.  Since the first opening of the first shop abroad, L’Occitane pursues its development worldwide. The brand has a great international success, over 92% of its turnover is made abroad and only 8% in France. The competitors of L’Occitane in France and those abroad are different. The perception of the brand is not the same in the two cases. In France, it is perceived as a high range brand but still affordable. Its main competitors are Yves Rocher and The Body Shop. They all claim the benefits of natural ingredients in their products. Yves Rocher is a French company created in 1959 by Mr Rocher. The French brand proposes a large range of natural products made in France. Compared to L’Occitane, its positioning is more popular and thanks to this strategy, Yves Rocher is the most loved cosmetic brand by French people. Then the other British competitor, The Body Shop also uses natural ingredients in their products. The brand supports the self esteem and the fair trade and is against animal testing. Outside France, the positioning of the brand is perceived as premium. The direct competitors are the LVMH and L’Oreal groups. Internationally known the two groups offer premium products through their numerous brands.


Brand segmentation

In 2013 the cosmetic market generated a turnover of 8.25 billion euros. The market is segmented into many groups of products:

  • Fragrances: eau de parfum, eau de toilette
  • Cosmetics: care products, make up
  • Capillary products: shampoo, after shampoo
  • Toiletry products: deodorant, soap, shower gel

On this market, L’Occitane offers wide and complete choices of products: skin care, perfumery, capillary care, toiletry products. The brand is segmented according to the fragrances. Indeed the brand starts its journey by distilling Rosemary essential oil, then lavender and shea butter. The founder is a lover of the nature; he is constantly looking for the benefits of natural ingredients. Year by year he builds the ranges of the products by fragrance. The brand develops numerous fragrances whose the majority come from the Provence: lavender, rose, almond, cherry blossoms, verbena and shea butter from Africa. Consequently the products are gathered by fragrance. In each fragrance, the consumer can find a large pallet of cosmetic products: fragrance, skin care products, and capillary products.

This segmentation is reflected in stores. The products are classified by fragrance, every shelf represents a fragrance.


l'occitane indoor

L’Occitane shop indoor

Source: http://michelgutsatz.typepad.com/brandwatch_english/2010/07/loccitane-consistencies-and-inconsistencies.html


                                                                                                                                                                    Christine CHONG


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