servallgroup

The long held view held by some executives and bankers', being that L'Oreal should get into direct sales to boost its emerging market penetration could become a reality. The previous L'Oreal Chairman Lindsay Owen-Jones was against direct sales as he doubted the long term viability of this strategy and believed that direct sales could damage the image of L'Oreal's brands but Jean-Paul Agon, his successor is not so against the idea.

Financial advisers and insiders say that buying a direct sales company would help lowering L'Oreal's costs and conquer new markets. Agon does not have any plans to buy over companies like Avon, Natura, or Oriflame at the moment, but getting into direct sales would help the company's ambition of winning 1 billion new customers over the next 10 years in Asia, Latin America and Eastern Europe.