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 the 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 a presence in a lot of nations across the globe. The products are manufactured specifically considering the diversity to suit various skin types and cultures.
|Alfred Amour Garnier
|No. of Employees
|Net Income/ Profit
Current News About Garnier
- Garnier Men becomes Associate Partner of Mumbai Indians for IPL 2023. There is a huge craze for cricket in India. The cricket players are celebrities with millions of fans and the Indian Premier League (IPL) is regarded as some kind of festival which is celebrated by every cricket fan all over India. It is a huge deal even outside of the boundary of India. In IPL there is a team that has become champions over 5 times and has a massive fanbase which is Mumbai Indians (MI). This news circulated over social media pretty quickly.
- Now, Garnier has become an Associate Partner of MI it has gained a lot of attention which is a good thing for Garnier. It is profitable for Garnier because the general people will subconsciously believe it to be a good company as they will associate it with their favorite player in MI and general people will tend to believe that the players from MI use the products of Garnier. It will be great marketing as their name will not be in trend only in India but also in other countries with huge cricket fans that watch IPL.
- Natural Cosmetics Products
- Reasonable Price
- Readily Available even in somewhat remote areas
- Can buy from both as well as its own website
Interest & Hobbies
- Playing Cricket
- Playing Guitar
- Adventurous Sports
- The quality is compromised nowadays
- The products are unhealthy for the skin and hair
- Poor review analysis and changes made according to the review
Social Media Presence
SWOT Analysis of Garnier
Talking about Garnier’s 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 brand on the 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’s 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 is worth per quality offered. The easement of availability whether in physical stores or online stores makes Garnier’s reach even wider.
- Suitable & Healthy for Hair: Garnier products are free from animal-based ingredients and the quality of ingredients provides 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 toward 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: Consumers have become more conscious of their health care routine which is helping this segment to grow immensely. The growing beauty market has given 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: The 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 of 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 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 poses 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 chemicals that 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. However, it needs to regularly supply innovative products to stay in the market for the long run.
Top 5 Competitors of Garnier in India
- L’Oréal Paris: It is a subsidiary of the global beauty giant L’Oréal Group, and is a major rival to Garnier in India. The brand offers an extensive range of beauty and skincare products, featuring high-quality cosmetics, innovative haircare solutions, and skincare essentials. L’Oréal Paris is renowned for its commitment to beauty innovation and premium formulations, making it a strong competitor in India’s beauty and personal care market.
- Himalaya Herbals: It is a prominent competitor in India, known for its herbal and natural beauty products. It competes directly with Garnier by offering Ayurvedic-inspired skincare and personal care solutions, highlighting the use of natural ingredients and traditional herbal remedies.
- Ponds: As a Unilever brand, Ponds competes with Garnier in the Indian skincare market. Ponds provides a diverse range of skincare products, including creams, lotions, and face washes, catering to various skin types and concerns.
- Nivea: It is a well-established brand globally, and is a direct rival to Garnier in India’s personal care industry. It offers a comprehensive lineup of skincare and grooming products, including moisturizing creams, lotions, and body care items, targeting a wide range of consumer needs.
- Biotique: It specializes in Ayurvedic and natural beauty products in India, challenging Garnier in the herbal and natural beauty segment. The brand’s products incorporate traditional Indian botanicals and herbs to offer skincare and haircare solutions rooted in Ayurvedic principles, attracting consumers seeking natural and holistic beauty solutions.
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 which has helped build trust with its customers.
It has strong growth potential and has reached 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.
Today, we have reached an age where digital marketing is of utmost importance. It has become an inevitable tool so being well versed in the field is a must for all the marketing enthusiasts out there. If you are intrigued by digital marketing and wish to learn about it, check out IIDE’s 3-Month Advanced Online Digital Marketing Course to know more.
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