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In a context where French consumers are calling for a boycott following the announcement in a press release this weekend of the French group’s intention to erase certain words from its packaging, the group recorded a drop of around 1% on 29 June. This is the first impact on the share price of the group, the world’s number one cosmetics group, which had a positive graphic configuration close to 300 euros since the beginning of the deconfinement.
Forecasts on the rise
The L’Oréal share’s graphic trend is bullish as long as it is above the support threshold of 260.90 euros. Above this support, the stock can move towards a first target of 292 euros. The next resistance was, until this weekend’s events, a little higher, at 305 euros according to analysts’ forecasts.
If the post-Covid-19 situation allows L’Oréal a strong recovery, particularly in China, its second largest market worldwide, it also seems to support the strategy of the cosmetics group with 36 brands.
“For us, there is no contradiction between economic performance and responsibility. On the contrary. It is a virtuous circle, and it is probably all the efforts we have made to transform ourselves that have also contributed to L’Oréal’s economic performance,” said the group’s CEO, Jean-Paul Agon.
A decision disapproved of by consumers
However, the press release published by L’Oréal this Saturday announcing its decision to remove the terms “white”, “whitening” or “clear” from all its products designed to make skin more even, following the anti-racist demonstrations held around the world in recent weeks, has plunged the brand into chaos.
This announcement was relatively badly received by consumers, who rushed in launch a boycott campaign on social networks. This Sunday morning, the hashtag #JarreteLoreal even ranked at the top of trending topics, i.e. the most commented topics on Twitter.
The affair was also taken up by French political figures such as Marine Le Pen, who thought it was “very disappointing” that the French group was following “racialist claims”, or former minister Philippe de Villiers, who denounced “racialist marketing”.
The issue of ethnic marketing
Indeed, the brand’s willingness to adopt so-called “ethnic” marketing is widely suspected by consumers. It is a marketing that targets non-white populations, this segment represents 50 to 60 million euros in France and is growing, especially for the cosmetics industry.
Adopting such a strategy is therefore a privileged way for the group to reach its main targets: Asian and melting-pot populations, but also to react to the anger expressed since the death of George Floyd at the end of May.
Unilever‘s Indian subsidiary had already chosen to rename its lightening cream “Fair & Lovely”. As for the American giant, Johnson and Johnson, it has banned the sale of lightening substances designed for Asia and the Middle East.
A double-edged strategy since recent events have however led to a slight drop in the stock market value of the share today. If the L’Oréal share pushes the threshold of 260.90 euros, it is exposed to a decline towards 239 or even 229 euros.
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In a context where French consumers are calling for a boycott following the announcement in a press release this weekend of the French group’s intention to erase certain words from its packaging, the group recorded a drop of around 1% on 29 June. This is the first impact on the share price of the group, the world’s number one cosmetics group, which had a positive graphic configuration close to 300 euros since the beginning of the deconfinement.
Forecasts on the rise
The L’Oréal share’s graphic trend is bullish as long as it is above the support threshold of 260.90 euros. Above this support, the stock can move towards a first target of 292 euros. The next resistance was, until this weekend’s events, a little higher, at 305 euros according to analysts’ forecasts. […][/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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In a context where French consumers are calling for a boycott following the announcement in a press release this weekend of the French group’s intention to erase certain words from its packaging, the group recorded a drop of around 1% on 29 June. This is the first impact on the share price of the group, the world’s number one cosmetics group, which had a positive graphic configuration close to 300 euros since the beginning of the deconfinement.
Forecasts on the rise
The L’Oréal share’s graphic trend is bullish as long as it is above the support threshold of 260.90 euros. Above this support, the stock can move towards a first target of 292 euros. The next resistance was, until this weekend’s events, a little higher, at 305 euros according to analysts’ forecasts. […][/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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