L'Occitane
Encyclopedia
L'Occitane en Provence is an international retailer of body, face, and home products based in Manosque
, France
. The company was founded in 1976 by Olivier Baussan with the purpose to create a company that celebrates and preserves the traditions of his native Provence
. L’Occitane means “the woman from Occitania
”.
The company aspires to be "the worldwide reference for Mediterranean well-being, with unique body, face, and home products". The company's stated brand values are: "Authenticity and naturalness," "Effectiveness and pleasure," and "Respect and responsibility." In 2010, the company became listed on the Hong Kong Stock Exchange
.
from wild rosemary
and lavender which he sold at open-air markets in his native Provence
. L’Occitane was named for the women of Occitania
. This area existed during the middle ages, spanning southern France, north-eastern Spain and northern Italy. Occitan was the native language and is still spoken as a second language in some areas of this region today.
The first L’Occitane boutique opened in 1978 in Volx
, a village in Provence. Baussan found a disused soap factory in Manosque
, another Provençal village, which he took over to manufacture vegetable-based soaps using traditional methods.
In the 1990s, Baussan sold a majority stake in the business to venture capitalists to finance expansion. As their approaches were incompatible, Baussan found himself excluded from daily management and strategic decision-making.
In 1994, Austrian businessman Reinold Geiger bought a 33% stake in the group. Through a series of capital increases, Geiger became majority shareholder in 1996. Geiger, as the new Chairman, asked Baussan to return as creative director and lead product development. The company's new focus on marketing strategy paved the way for international expansion. In the late 1990s the company changed its name to 'L'Occitane en Provence', to strengthen the connection with the company's roots and because the term 'Provence' had more meaning to an international audience. On 20 April 2001, Clarins became a financial investor in the company through subscription to approximately 5.18% of the company's shares and €11,433,750 convertible debenture loan. On 22 February 2005, Clarins further invested €16,525,580 in convertible debentures. When the debentures were converted, Clarins held 23.33% of the shares. The management executed a leveraged buyout
in May 2007 following which Reinold Geiger's stake rose from 31.9% to 48.7%, and Clarins' stake was diluted to 10.0%.
L’Occitane has shops in 70 countries, in North America, South America, Europe, Asia, and Australia; with 170 shops in the United States. At the launch of its IPO in 2010, the company announced that its products were sold in over 80 countries through over 1,500 retail locations; it had 753 L’Occitane Stores. In the year ended 31 March 2009, it generated sales of €537.3 million;. It planned over 650 store openings with the capital raised.
of L'Occitane International S.A., underwritten by CLSA, HSBC and UBS which the company had originally planned in 2008, but postponed because of the financial crisis. The company stated that two-thirds of the proceeds would be used to finance store openings. China Investment Corporation invested US$50 million in the company's IPO as the cornerstone investor (for approximately 1.9% of the shares). Following the listing of shares in L'Occitane International SA, L'Occitane Groupe SA detains 75% of the shareholding of the company; shares owned by Geiger, Clarins and other shareholders are indirect.
L'Occitane contributes to preserve traditional cultivation methods by:
In addition to products sourced from Provence, Shea butter
is purchased directly from women's groups in Burkina Faso
as Fair Trade with the 'Ecocert' certification. The Shea tree is considered sacred, and its butter is known as "women's gold" because it is how the women make their money. Shea butter traditions are still used, such as only fallen fruit may be collected by women, and only women know the secret to making shea butter.
According to the company, it does not conduct animal testing, and no animal product or by-product, except for beehive products are used in the manufacturing process. L'Occitane develops most of it products and ingredients in line with the organic cosmetics specifications of Ecocert
.
The company, which was founded in the Ardèche in 1983 by French biologist Bernard Chevilliat, commercialises ecological and organic cosmetics principally in France. In 1990, Melvita launched its first organic cosmetics range and its manufacturing obtained ECOCERT
certification. They now have stores in thirteen countries.
To support economic emancipation of women, the L’Occitane Foundation partnered with the association Faa-I-tuora to improve the way of living of people in Dissin, in the South West region of Burkina Faso.
Manosque
Manosque is the largest town and commune in the Alpes-de-Haute-Provence department in southeastern France. However, it is not the préfecture of the département, which resides in the smaller town of Digne-les-Bains...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. The company was founded in 1976 by Olivier Baussan with the purpose to create a company that celebrates and preserves the traditions of his native Provence
Provence
Provence ; Provençal: Provença in classical norm or Prouvènço in Mistralian norm) is a region of south eastern France on the Mediterranean adjacent to Italy. It is part of the administrative région of Provence-Alpes-Côte d'Azur...
. L’Occitane means “the woman from Occitania
Occitania
Occitania , also sometimes lo País d'Òc, "the Oc Country"), is the region in southern Europe where Occitan was historically the main language spoken, and where it is sometimes still used, for the most part as a second language...
”.
The company aspires to be "the worldwide reference for Mediterranean well-being, with unique body, face, and home products". The company's stated brand values are: "Authenticity and naturalness," "Effectiveness and pleasure," and "Respect and responsibility." In 2010, the company became listed on the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
.
History
In 1976, 23-year old Olivier Baussan used steam distillation to produce essential oilEssential oil
An essential oil is a concentrated hydrophobic liquid containing volatile aroma compounds from plants. Essential oils are also known as volatile oils, ethereal oils or aetherolea, or simply as the "oil of" the plant from which they were extracted, such as oil of clove...
from wild rosemary
Rosemary
Rosemary, , is a woody, perennial herb with fragrant, evergreen, needle-like leaves and white, pink, purple or blue flowers, native to the Mediterranean region. It is a member of the mint family Lamiaceae, which includes many other herbs, and is one of two species in the genus Rosmarinus...
and lavender which he sold at open-air markets in his native Provence
Provence
Provence ; Provençal: Provença in classical norm or Prouvènço in Mistralian norm) is a region of south eastern France on the Mediterranean adjacent to Italy. It is part of the administrative région of Provence-Alpes-Côte d'Azur...
. L’Occitane was named for the women of Occitania
Occitania
Occitania , also sometimes lo País d'Òc, "the Oc Country"), is the region in southern Europe where Occitan was historically the main language spoken, and where it is sometimes still used, for the most part as a second language...
. This area existed during the middle ages, spanning southern France, north-eastern Spain and northern Italy. Occitan was the native language and is still spoken as a second language in some areas of this region today.
The first L’Occitane boutique opened in 1978 in Volx
Volx
Volx is a commune in the Alpes-de-Haute-Provence department in the Provence-Alpes-Côte d'Azur region in southeastern France.-Population:-References:*...
, a village in Provence. Baussan found a disused soap factory in Manosque
Manosque
Manosque is the largest town and commune in the Alpes-de-Haute-Provence department in southeastern France. However, it is not the préfecture of the département, which resides in the smaller town of Digne-les-Bains...
, another Provençal village, which he took over to manufacture vegetable-based soaps using traditional methods.
In the 1990s, Baussan sold a majority stake in the business to venture capitalists to finance expansion. As their approaches were incompatible, Baussan found himself excluded from daily management and strategic decision-making.
In 1994, Austrian businessman Reinold Geiger bought a 33% stake in the group. Through a series of capital increases, Geiger became majority shareholder in 1996. Geiger, as the new Chairman, asked Baussan to return as creative director and lead product development. The company's new focus on marketing strategy paved the way for international expansion. In the late 1990s the company changed its name to 'L'Occitane en Provence', to strengthen the connection with the company's roots and because the term 'Provence' had more meaning to an international audience. On 20 April 2001, Clarins became a financial investor in the company through subscription to approximately 5.18% of the company's shares and €11,433,750 convertible debenture loan. On 22 February 2005, Clarins further invested €16,525,580 in convertible debentures. When the debentures were converted, Clarins held 23.33% of the shares. The management executed a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
in May 2007 following which Reinold Geiger's stake rose from 31.9% to 48.7%, and Clarins' stake was diluted to 10.0%.
L’Occitane has shops in 70 countries, in North America, South America, Europe, Asia, and Australia; with 170 shops in the United States. At the launch of its IPO in 2010, the company announced that its products were sold in over 80 countries through over 1,500 retail locations; it had 753 L’Occitane Stores. In the year ended 31 March 2009, it generated sales of €537.3 million;. It planned over 650 store openings with the capital raised.
Listing
In March 2010, the listing committee of the Hong Kong Stock Exchange approved its plan for a $400–$600 million initial public share offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
of L'Occitane International S.A., underwritten by CLSA, HSBC and UBS which the company had originally planned in 2008, but postponed because of the financial crisis. The company stated that two-thirds of the proceeds would be used to finance store openings. China Investment Corporation invested US$50 million in the company's IPO as the cornerstone investor (for approximately 1.9% of the shares). Following the listing of shares in L'Occitane International SA, L'Occitane Groupe SA detains 75% of the shareholding of the company; shares owned by Geiger, Clarins and other shareholders are indirect.
Beauty products
All of L'Occitane's products are developed and produced from its base in Manosque. The company sources the majority of its production from local producers who rely on traditional production methods.L'Occitane contributes to preserve traditional cultivation methods by:
- Supporting the program to cultivate almond trees in the Alps of Haute-Provence.
- Preserving certain rare species through the planting of their own field of Immortelle flowers in CorsicaCorsicaCorsica is an island in the Mediterranean Sea. It is located west of Italy, southeast of the French mainland, and north of the island of Sardinia....
. - Developing partnerships with organizations that support the development of scented and aromatic plants, such as the Office National Interprofessionel des Plantes à Parfum, and
- Encouraging traditional cultivation, particularly that of lavenderLavenderThe lavenders are a genus of 39 species of flowering plants in the mint family, Lamiaceae. An Old World genus, distributed from Macaronesia across Africa, the Mediterranean, South-West Asia, Arabia, Western Iran and South-East India...
.
Shea butter
Shea butter is a slightly yellowish or ivory-colored fat extracted from the nut of the African shea tree . It is widely used in cosmetics as a moisturizer, salve or lotion. Shea butter is edible and may be used in food preparation...
is purchased directly from women's groups in Burkina Faso
Burkina Faso
Burkina Faso – also known by its short-form name Burkina – is a landlocked country in west Africa. It is surrounded by six countries: Mali to the north, Niger to the east, Benin to the southeast, Togo and Ghana to the south, and Côte d'Ivoire to the southwest.Its size is with an estimated...
as Fair Trade with the 'Ecocert' certification. The Shea tree is considered sacred, and its butter is known as "women's gold" because it is how the women make their money. Shea butter traditions are still used, such as only fallen fruit may be collected by women, and only women know the secret to making shea butter.
According to the company, it does not conduct animal testing, and no animal product or by-product, except for beehive products are used in the manufacturing process. L'Occitane develops most of it products and ingredients in line with the organic cosmetics specifications of Ecocert
ECOCERT
ECOCERT is an organic certification organization, founded in France in 1991. It is based in Europe but conducts inspections in over 80 countries, making it one of the largest organic certification organizations in the world....
.
Melvita
L'Occitane bought Groupe M&A Développement and its subsidiary, M&A Santé Beauté, which includes the organic cosmetic brand Melvita, in 2008.The company, which was founded in the Ardèche in 1983 by French biologist Bernard Chevilliat, commercialises ecological and organic cosmetics principally in France. In 1990, Melvita launched its first organic cosmetics range and its manufacturing obtained ECOCERT
ECOCERT
ECOCERT is an organic certification organization, founded in France in 1991. It is based in Europe but conducts inspections in over 80 countries, making it one of the largest organic certification organizations in the world....
certification. They now have stores in thirteen countries.
The L'Occitane Foundation
La Fondation d’Entreprise L’Occitane is a private organization founded in 2006 by the company, with a budget of 4 million Euros for 6 years, to support visually impaired people and help the economic emancipation of women. It supports associations for the visually impaired particularly in Burkina Faso with NGOs that are specialized in training professionals to reduce blindness. The L'Occitane Foundation has formed a partnership with Orbis, an organization that fights against avoidable blindness in developing countries.To support economic emancipation of women, the L’Occitane Foundation partnered with the association Faa-I-tuora to improve the way of living of people in Dissin, in the South West region of Burkina Faso.