In our previous article, we had done an extensive SWOT Analysis on one of the trusted beauty brands in the world, Clinique. In this article, we will be doing an in-depth SWOT analysis of Garnier – A mass-market cosmetics brand.
Over the decades Garnier has been the leading brands in hair colour and developed from hair colour and hair care into skincare since its acquisition in 1970. Now, Garnier is marketed in multiple countries worldwide, with specific product lines targeted for various skin types and cultures.
Over the decades, the company has expanded dramatically from hair colour and hair care to skincare due to its effective marketing strategies. As the world goes online, marketing has become an indispensable tool. If you desire to gain an understanding of today’s effective marketing, check out our Free MasterClass on Digital Marketing 101, taught by Karan Shah, CEO and Founder of IIDE.
To better understand the cause following Garnier’s consistent growth and expansion, let’s go through a detailed SWOT analysis of Garnier. But before we begin, let us learn more about Garnier, its inception, financial status, products, services and competitors.
Garnier is a cosmetics brand of French cosmetics company L’Oreal that was founded in 1904 by Alfred Amour Garnier. The company initially began as Laboratories Garnier but it was in the 1970s that it was acquired by L’Oreal company. Garnier company’s first product that was ever produced and launched was LA Lotion Garnier. It was a plant-based product, hair lotion to be precise, which led Alfred Amour Garnier to secure his very first patent rights over this product.
Garnier now engages in the production of hair care and skin care products which are quite affordable and are well known for their natural ingredients. The company has its presence in a lot of nations across the globe. The products are manufactured specifically considering the diversity to suit various skin types and cultures.
|Founder||Alfred Amour Garnier|
|No. of Employees||N/A|
|Net Income/ Profit||N/A|
Products by Garnier
- Haircare & Styling
- Hair colour
- Sun care
Competitors of Garnier
- Head and Shoulders
Now that we understand the company’s key business, let’s look after the SWOT Analysis of Garnier.
SWOT Analysis of Garnier
Talking about Garnier business, let’s understand how this corporation can cater to different individuals using SWOT Analysis. SWOT Analysis of Garnier helps us to understand companies through the lens of internal and external factors. Internal factors refer to strengths and weaknesses, which can be controlled by the corporation.
To better understand the SWOT analysis of Garnier, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT analysis of Garnier.
Strengths of Garnier
Strengths are the factors in which the company holds expertise and contribute to the continued success of the organization. These are the basis for the continued success of the organization and will assist in gaining the organization’s mission.
- Global Ranking: Garnier’s haircare and skincare have been ranked as one of the most trusted products particularly in Asia, China & India. It is also rated worldwide #7 most valuable beauty brands for Brand Strength Index, according to Brand Finance.
- Natural Cosmetics: Garnier is focusing on indulging innovation to produce a new line of organic, natural cosmetics Garnier Bio/Bio Garnier. It is promoting upcycling of product receptacles and the introduction of biodegradable products.
- Popular in India: Garnier is a well-known hair care brand and its products are quite popular in India. Garnier stores are most probably located in metropolitan areas and most of the ladies just do not visit Garnier for a haircut but to get some unique style as per the trend.
- Uniqueness in Packaging: Garnier packaging of the product is very sturdy, clean and suitable to use. The design of the pump dispenser shampoo and oval shape conditioner makes their product unique and convenient from its competitors.
- Reasonable Price & Availability: The price of Garnier products are worth per quality offered. And the easement of availability whether on physical stores or online stores makes Garnier reach even wider.
- Suitable & Healthy for Hair: Garnier products are free from animal-based ingredients and the quality of ingredients provide nourishment to dull & damaged hairs. This strength makes Garnier different and preferred from the chemical-based products presented on the market.
Weaknesses of Garnier
Weaknesses are the factors that prevent an organization from meeting its mission and achieving its full potential. These weaknesses hamper organizational success and growth.
- Quality Control: As discussed earlier, Garnier cuts down production costs to make products more affordable for the customers. Excessive cost-cutting can sometimes compromise the quality of the product. Moreover, Garnier has fewer funds allocated for the quality control department when compared to its competitors.
- Market Research: The market research conducted by Garnier is not up to the mark always. It can be said that it works with the same strategy and research for years sometimes. Customers’ taste preferences change frequently so it becomes necessary to keep up with it by researching quite often rather than using the same old market data.
- Internationalization: Garnier’s previous strategy was to go local but now it has decided to internationalize its products. This requires it to be more sensitive regarding the customer’s requirements as it has to cater to varying hair and skin types.
- Brand Switching: Due to differentiation, the number of people switching brands is increasing day by day, resulting in the cost of acquisition remaining higher. Because once you acquire a customer, the customer might shift to another brand quickly. Differentiation also causes a drop in brand loyalty.
- Little Success Outside Core Business: Although in its industry Garnier is one of the best brands, it has had trouble moving towards other product segments.
Opportunities for Garnier
Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Following are the opportunities of Garnier:
- Growth Potential: The consumers have become more conscious of their health care routine which is helping this segment to grow immensely. The growing beauty market has given a great growth potential to this company.
- Awareness Regarding Beauty Issues: Earlier, one shampoo or one lotion was enough for customers. But consumers today recognize beauty issues and demand separate products that specialize in tackling specific issues. Garnier has several products already and it can further expand its business by grabbing the opportunity of increased consumer awareness.
- Government Subsidies: Government provides subsidies in case an organization is involved in the sale of environmentally friendly products. Garnier’s latest initiative ‘Garnier Green Beauty’ is a great opportunity to avail these subsidies.
- High-End Products: It should also start focusing on the demands and wants of the consumer as it has already mastered their needs. A brand like L’Oreal released its L’oreal luxe range which are premium products for the consumers. Introducing products like this will increase the brand value of Garnier.
- Good Market Knowledge: Since Garnier has been in the industry for so long and has been one of the leading brands, it has great market knowledge which it can use to understand the ever-changing consumer tastes and needs and act on accordingly to gain success in the market.
Threats to Garnier
Threats are the factors that can be harmful to a company’s growth. The following are some of the threats that Garnier faces:
- Increasing Competition: There is a lot of competition and pressure building up in this sector which possesses a great threat to Garnier. Moreover, there are a lot of new entrants in this sector which might gain a good amount of market share. Garnier is at risk of losing its customers to new entrants and the already existing giants.
- Health-conscious Customers: There are a lot of health-conscious consumers who might avoid Garnier’s products thinking about the chemical which might be used in its products. Most consumers would rather prefer ayurvedic products. To avoid losing customers, Garnier will have to assure its consumers about its natural products.
- No Regular Production of Innovative Products: Over the years, the company has developed and brought in a range of products. But it needs to regularly supply innovative products to stay in the market for the long run.
This ends our detailed SWOT analysis of Garnier. Let us conclude our learning below.
Garnier is a well-recognized cosmetics company with a significant global presence. In the SWOT Analysis of Garnier, we have observed that the company is heavily diversified and enjoys strong brand recognition due to its strong social media presence that has helped build trust with its customers.
It has strong growth potential and has reached across all the markets it serves, but suffers from an increasing number of competitors and new entrants in the same sector. Due to increasing R&D and strategies by competitors, companies are suffering a lot. They require effective marketing strategies to tackle this issue.
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We hope this blog on the SWOT analysis of Garnier has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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