��Oréal said at the time that the Luxe division was making market share gains across all zones, with the sole exception of North America, an area which has been devastated by the coronavirus pandemic.  Shift to e-commerce L’Oreal Luxe is now shifting its focus to high growth areas such as e-commerce, an area which grew by nearly 65 per cent in the first half as the pandemic forced consumers to stay home.  “Modernising its current distribution footprint is necessary for rebuilding the organisation around the future of the consumer,” the company said in a statement to Bloomberg. “Luxury consumer behaviour in the US has fundamentally evolved, and L’Oreal USA will be evolving its business to meet these new consumer expectations and preferences.” The L’Oreal Luxe portfolio is composed of 26 recognisable, high-end brands, 17 of which are global, including Yves Saint Lauren, Giorgio Armani, Lancome and Urban Decay.  Makeup remains the beauty category most affected by the crisis, meaning L’Oreal Luxe has had to lean heavily on skincare brands such as Kiehl’s and Lancôme which performed well in the second quarter.  And while major luxury markets, particularly in Asia and especially in China, are showing encouraging signs of an upturn, L’Oreal Luxe needs to look at doing things differently.  Is there still hope for L’Oreal Luxe? According to Cyril Chapuy, president of L’Oreal Luxe, this division is based around offering “strong desirable brands, star products and long-lasting pillars nurtured by superior quality and innovation”. “In a world of hyper choice, where fears about safety are increasing, where consumers vote everyday through ratings and reviews, we must be different, original and create surprise. We have brands that cultivate this difference to make luxury a unique experience,” Chapuy says of L’Oréal Luxe on the company website.  But is a luxury offer at a company like L’Oreal still viable at this time? Steven Altman, managing director at boutique market research consultancy Inspiring-i, thinks so. “Indeed, I think that a luxury offer is completely viable. It is true that consumer spending patterns and habits e.g. e-commerce, will shift,” Altman told Inside Retail.  “However, in saying that, some other brands are launching more ‘lifestyle’ focused and interactive offline experiences, often to attract a younger demographic.”  He believes some beauty brands have also become a little ‘tired’ and may struggle to make an impact in the competitive beauty landscape. “Whilst their ‘ingredients’ may be some of the best, their positioning in the consumers’ eyes may lead to some confusion. It is increasingly important for consumers to understand the DNA of the brand. They want a story. In such a cluttered environment, it is imperative that your brand is not only relevant, but you also need to own and tell that story,” he said.  “This would be even more pertinent for a brand such as L’Oréal Luxe as their portfolio of individual brands is so large. So is Estée Lauder’s. In these cases, individual brands need to stand out even more strongly from each other, each with their own ‘unique’ properties or possibly to even further segment a ‘Luxe’ offering.” The strategy could soon change further at L’Oreal, with the beauty company having just announced Nicolas Hieronimus as CEO to take over from Jean-Paul Agon in May. Hieronimus is currently deputy CEO and has had a 30-year long career at the L’Oreal Group, while Agon will remain as chairman of the board.  Inside Retail contacted L’Oreal for comment on the restructure of its Luxe division but did not receive a response ahead of publication.