From 2021 to 2024, L'Oreal SA, Estée Lauder, and Shiseido Company, Limited navigated diverging growth curves, shaped by their geographic exposures, pricing strategies, and structural agility. When evaluated in USD, currency fluctuations reveal even sharper contrasts between top-line and bottom-line trends.

L’Oréal: A Model of Sustainable Growth

L'Oreal SA recorded robust and unbroken revenue growth, rising from $36,7 billion in 2021 to $49,43 billion in 2024 — a total increase of 34,7%. Operating income followed a parallel trajectory, growing by 41,1% from $7,00 billion to $9,88 billion over the same period.

• Intra-brand stability: Although growth decelerated in 2024 (+5,1 %), the group maintained consistent operating margin expansion, aided by portfolio premiumisation and e-commerce acceleration.

• Inter-brand leadership: With unmatched revenue scale and operating profitability, L'Oreal SA remains the industry’s anchor brand — resilient across geographies and categories, particularly in luxury, dermocosmetics, and mass beauty.

Estée Lauder: A Reversal from Strength to Volatility

The Estee Lauder Companies Inc. peaked in FY2022 at $17,741 billion in revenue and $3,314 billion in operating income, before a sharp two-year downturn. By FY2024, revenue had declined to $15,609 billion (–12 % from peak), and operating income had plummeted to $970 million — a staggering 70,7 % decline from FY2022.

• Intra-brand reversal: While the group demonstrated post-COVID strength in FY2021–22, heavy dependence on China and travel retail, plus inventory imbalances, led to significant margin erosion in FY2023–24.

• Inter-brand warning sign: Once a premium skincare leader, The Estee Lauder Companies Inc. has now fallen behind in profitability and consistency, urgently needing restructuring across its supply chain, regional focus, and digital DTC model.

Shiseido: Flat Growth with Marginal Recovery

Shiseido Company, Limited reported minimal net revenue growth — from $7,22 billion in 2021 to $6,91 billion in 2024 (–4,3 %). Operating income rose briefly to $0,389 billion in 2022 but declined again to $0,25 billion in 2024 (–35,7 %).

• Intra-brand struggle: The brand’s reliance on Asia-Pacific (particularly Japan and China) has constrained rebound opportunities. Despite strategic divestitures and innovation investments, profitability remains under pressure.

• Inter-brand limitations: Shiseido Company, Limited is the smallest and least diversified among the three, with weaker margin recovery and less pricing power globally. Its long-term strength depends on R&D execution and global market penetration.

Regional Revenue Distribution (2024)

In the evolving post-pandemic beauty landscape, regional exposure is proving to be one of the most decisive factors in a company’s resilience. As economic slowdowns, inflationary pressures, and consumer shifts ripple unevenly across the globe, brands with a balanced geographic footprint are significantly better positioned to maintain stability and long-term growth.

Americas: A Strategic Anchor for Diversification

The Americas remain a cornerstone for both L'Oreal SA and The Estee Lauder Companies Inc., contributing 35 % and 29,3 % of their revenue respectively. For L'Oreal SA, strong performances in Latin America and the U.S. create a counterbalance to volatility in Asia, enabling the group to maintain its growth momentum. The Estee Lauder Companies Inc.’s reliance on this region has been critical amid recent headwinds in Asia-Pacific, although its exposure here is comparatively lower. In contrast, Shiseido Company, Limited draws just 12 % of its revenue from the Americas, underlining a key vulnerability: limited insulation from Asian slowdowns.

Europe, the Middle East & Africa: The Stability Belt

EMEA plays a stabilising role across the board — especially for The Estee Lauder Companies Inc., where the region accounts for 39,3 % of total revenue. Premium skincare and fragrance sales remain resilient in key European markets, cushioning pressure from travel retail slumps. L'Oreal SA, with 33 % of its revenue from Europe, also leverages strong local demand and diversified price segments to build stability. Shiseido Company, Limited’s exposure here (13,4 %) is modest, limiting the group’s participation in Europe’s post-COVID premiumisation trends.

Asia Pacific: The High-Risk, High-Reward Region

Asia Pacific (inclusive of North Asia and broader APAC markets) continues to be the growth engine — and risk centre — of the beauty sector. Shiseido Company, Limited is the most exposed, with over 61 % of revenue tied to Asia (notably 28,6 % from Japan and 25,2 % from China). This concentration has amplified its revenue volatility amid China’s slower-than-expected recovery and subdued Japanese consumer sentiment. The Estee Lauder Companies Inc., while reporting 31,3 % from Asia-Pacific, has been disproportionately affected due to its dependency on Chinese travel retail and skincare. L'Oreal SA’s exposure is more moderate — 24% from North Asia — enabling it to benefit from regional growth while limiting downside risk.

Emerging Markets & SAPMENA–SSA: The Buffer Zones

L'Oreal SA’s agility is particularly evident in its 9,0 % revenue share from SAPMENA–SSA (South Asia Pacific, Middle East, North Africa, and Sub-Saharan Africa). These markets — often overlooked — have become vital shock absorbers, allowing L'Oreal SA to sustain growth even as mature markets waver. The Estee Lauder Companies Inc. and Shiseido Company, Limited report minimal or no disclosed revenues from these regions, highlighting untapped potential and strategic blind spots.

Strategic Takeaways

• Geographic diversification is no longer optional — it’s the frontline defence against regional economic downturns. L'Oreal SA exemplifies this, reaping the rewards of balance and breadth.

• EMEA remains a resilient stronghold, especially for brands with premium portfolios and fragrance dominance.

• Asia-Pacific dependency must be recalibrated. The Estee Lauder Companies Inc. and Shiseido Company, Limited are particularly exposed to demand contractions in China and Japan.

• Emerging markets will define the next frontier. With modest but growing contributions, regions like Latin America, MENA, and Sub-Saharan Africa offer diversification value that is already paying off for L'Oreal SA.

As beauty brands rethink global strategy, one pattern is clear: those with wide, agile geographic footprints are 2–3x more likely to deliver stable returns. In this race, L'Oreal SA leads — but the gap is not yet insurmountable.

Sales by Channel (2024)

The three beauty conglomerates showcased contrasting channel strategies in FY2024, with varying reliance on e-commerce, travel retail, and owned retail networks.

• L'Oreal SA derived approximately 28,2% of its revenue from e-commerce, maintaining its lead in digital acceleration. Its owned retail stores accounted for nearly 47 %, demonstrating strength across both physical and digital DTC formats. Department stores and travel retail contributed 10% and 8% respectively, with the remaining 6 % attributed to B2B and other indirect channels.

• The Estee Lauder Companies Inc. had a similar share of e-commerce at 28%, but faced notable declines in travel retail, which represented 18% of total sales. Owned retail contributed around 34%, while department stores remained significant at 20%, particularly in the Americas and EMEA.

• Shiseido Company, Limited, heavily reliant on Asia-Pacific distribution, generated 25% of its sales via e-commerce and 41% through its directly operated retail network. Department stores comprised 12%, while travel retail added 17%. Smaller channels, including regional affiliates, made up the final 5%.

These figures reflect not only channel diversity but strategic vulnerability. While all three groups have invested in e-commerce and DTC, their exposure to travel retail — especially The Estee Lauder Companies Inc. and Shiseido Company, Limited — has proven to be a margin risk in times of global travel disruption.

Strategic Developments and Brand Moves (FY2024)

L'Oreal SA

A diversified powerhouse spanning luxury, mass, dermocosmetics, and active beauty.

Brands:

Lancôme, Yves Saint Laurent Beauty, Giorgio Armani Beauty, Kiehl's, La Roche-Posay, L'Oréal Paris, Garnier, Vichy, SkinCeuticals, NYX Cosmetics.

Brand Ambassadors and Campaigns:

• In September 2024, L'Oréal Paris appointed Alia Bhatt as a global brand ambassador, reinforcing its inclusivity strategy.

• In August 2024, Ariana Greenblatt was announced as the youngest global ambassador.

• Reneé Rapp joined in May 2024, and Temi Otedola was introduced as the digital face of L'Oréal Paris Makeup.

• Gillian Anderson joined the roster in April 2024, representing age inclusivity for women over 50.

Product & Innovation:

During the May 2025 Met Gala, Heidi Klum showcased L'Oréal Paris's Lumi Glotion, underscoring its hybrid skincare/cosmetics strategy.

Events:

The seventh edition of “Le Défilé Walk Your Worth”, held in September 2024 at Paris Fashion Week, featured Jane Fonda, Kendall Jenner, and Cara Delevingne.

The Estee Lauder Companies Inc.

Prestige and luxury-oriented with a deep presence in skincare and fragrance.

Brands:

Estée Lauder, La Mer, MAC, Clinique, Jo Malone London, Tom Ford Beauty, Bobbi Brown, Aveda, Origins, DrJart, The Ordinary.

Leadership:

• In October 2024, it was confirmed that Stéphane de la Faverie would succeed Fabrizio Freda as CEO.

Product Launches:

• Holiday Blockbuster Gift Set 2024 was released in September 2024.
• Bronze Goddess Spring-Summer 2024 Collection launched in April 2024.
• Legacy Collection Fragrances debuted in June 2024.

Strategic Partnerships:

In February 2024, Estée Lauder and Balmain announced a partnership to launch Balmain Beauty in September 2024.

Distribution Expansion:

In October 2024, Estée Lauder expanded to Amazon’s Premium Beauty store in the U.S.

Shiseido Company, Limited

A leader in Asian beauty with strong R&D and a focus on prestige skincare.

Brands:

Shiseido, Clé de Peau Beauté, NARS, Elixir, IPSA, Anessa, Drunk Elephant, Laura Mercier.

Campaigns & Collaborations:

• “From SHISEIDO With Love” global campaign launched in September 2024.

• Collaborated with Yuni Yoshida in August 2024 to commemorate ULTIMUNE’s 10th anniversary.

• In July 2024, Shiseido Hong Kong launched #FullBloomBeauty with boy group MIRROR.

Product Innovation:

Celebrated ULTIMUNE’s 10-year milestone in August 2024 with new storytelling and limited edition formats.

Design Recognition:

In June 2024, Shiseido’s “Beauty from within” won the Red Dot Design Award Grand Prize.

Corporate Strategy:

• In April 2024, CM&IO Yoshiaki Okabe launched the 2030 R&D VISION, emphasising sustainable innovation.

• These strategic developments reflect each company’s brand-building strengths and geographic focus, underscoring how marketing, leadership, and innovation contribute to competitive positioning in FY2024.

Conclusion: Beauty’s Diverging Paths

Between 2021 and 2024, the strategic direction and financial resilience of L'Oreal SA, The Estee Lauder Companies Inc. and Shiseido Company, Limited have diverged significantly. L'Oreal SA has cemented its leadership through geographic balance, steady revenue and margin growth, and strong channel performance, especially in e-commerce and owned retail. The Estee Lauder Companies Inc. experienced early gains, but its heavy exposure to travel retail and Asia led to a sharp profitability decline in FY2023–24, prompting major leadership changes and digital channel expansion. Shiseido Company, Limited, still regionally concentrated in Japan and China, struggled with flat revenue and declining margins but has taken steps toward innovation-led recovery through R&D investment and global brand storytelling.

In FY2024, all three companies doubled down on brand-building: L'Oreal SA launched high-impact ambassador campaigns and inclusive global events, The Estee Lauder Companies Inc. partnered with Balmain and expanded its premium beauty presence, while Shiseido Company, Limited rejuvenated its hero products and won design accolades. However, their performances reflected differing capacities to convert strategy into financial gains.

So far in 2025, L'Oreal SA has continued its strong start with product spotlights at major events like the Met Gala and has maintained its omnichannel dominance. The Estee Lauder Companies Inc. is undergoing executive transition with incoming CEO Stéphane de la Faverie expected to steer recovery from mid-2025, alongside new launches and further e-commerce penetration. Shiseido Company, Limited has begun rolling out its 2030 R&D Vision and expanding wellness and dermo brands across APAC and Europe.

Looking ahead, sustained growth will require balancing local relevance with global scalability. L'Oreal SA’s consistent execution offers a roadmap, while The Estee Lauder Companies Inc. and Shiseido Company, Limited must recalibrate swiftly to remain competitive in an increasingly innovation-led, digitally fragmented beauty market.

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Read the full L'Oreal SA report here,
The Estee Lauder Companies Inc. here
Shiseido Company, Limited here

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For a deeper dive into the comparative analysis on financial performance of other top brands, explore the

Fast Fashion’s Big Three: A Comparative Analysis of H&M, Inditex SA, and Fast Retailing Co., Ltd. - here

Inside the Playbook: Financial Strategies of Nike, Adidas, Puma, Lululemon Athletica and Under Armour - here

Navigating Divergence: Financial Highlights for LVMH Moët Hennessy - Louis Vuitton, Compagnie Financière Richemont S.A., and Kering Group - here

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Sources: Bain & Company Beauty Report 2024, Company financial reports (2021–2024), Estée Lauder, Shiseido, L’Oréal corporate press releases, Industry insights from McKinsey & Business of Fashion.

Cover Image Courtesy: WWD, Social Samosa X page and Moodie Davitt Report.