Shelley Ann Asks…If L’Oreal ownes Lancome, why the heck is the price difference SO high? I recently received a foundation sample from Lancome and absolutely loved it. I went to the Lancome counter at Macys. . . the 0.85 oz full size product was $35.00. Yikes! The sales gal told me in France L’Oreal was at the department stores behind the counters and Lancome products were sold at France’s Walmarts, Target’s, and Walgreen stores. So what is up with this?
The Right Brain responds:
We can think of at least four different reasons why two different brands by the same company would be priced differently.
Reason 1: Higher quality = more expensive
In some cases there really is a difference in quality between brands that just justifies a different price.F or example, the Alberto Culver company used to make both VO5 shampoo and Tresemme shampoo. Tresemme shampoo was more expensive because it used richer surfactants and it more contained conditioning agents. The difference in performance justified a price difference.
On the other hand, we also know for a fact that large companies share formulations across different brands. In that case there may be low and high cost products using the exact same formula. When that happens the difference is based on pure marketing because the parent company wants one of the brands to be more prestige. The marketing position may vary across different regions like your example of L’Oreal being sold at Walmart in France. (By the way is it just me or is the idea of Walmart in France really funny? Also we’re pretty sure that if there was a Target store in France it would be pronounced “Tar-zhay.”
Reason 2: More fashionable color choices = more expensive
Even though the basic chemistry may be the same, companies do charge more for brands with more fashionable colors. (At least in the case of color cosmetics.) For example we’ve heard that the color choices between L’Oreal and Lancome are different and that may be driving the difference in price.
Reason 3: More elaborate packaging = more expensive
A large part of the expense of any cosmetic product is the package. So, if Lancome uses more colors of ink, more expensive dispensing mechanisms, or even higher-priced design elements (like metallic accents) that could drive its price higher than the comparable L’Oreal product.
Reason 4: More marketing = more expensive
Of course it could be all these things combined with marketing that accounts for price differences between the ads. More advertising, promotions, celebrity spokespersons all add into the selling price a brand.
The Beauty Brains bottom line
What’s in the formula is only one small factor in determining the selling prices of a beauty product. The magical manipulations of marketers has a much greater effect.
Image credit: freefoto.com
{ 12 comments… read them below or add one }
Don’t forget that Lancome counters provide services like testers that you can actually use, and salespeople that can advise customers (as well as do your makeup). The cost of that attention is built into the cost of the makeup.
Also, that salesperson was wrong – in France, Lancome is sold at department stores, while L’Oreal remains a drugstore brand.
The one thing I notice between L’Oreal and Lancome skincare products are the fillers. L’Oreal tends to have more silicone, dimethicone and their derivatives to make your skin feel smoother. However, Lancome skincare products tend to feel more like what skincare products are supposed to feel. They are more lotion-y to me. But of course, that has changed ever since Genifique came out. That serum is choke full of the -cones. L’Oreal does have their own Genifique version called Youth Code that also has a lot of -cones. The difference is the price: Genifique costs about 3 times more than Youth Code. Therefore, the prestige factor as well as the marketing and packaging factors do determine the price.
I’ll second Kristina’s observation that Lancome is not sold in drugstores in France. The brand division is still the same – Lancome is the luxury brand and L’Oreal the high street brand.
While the formulas may still be the same, what about the concentration of pigments versus fillers for coloured makeup?
No, I was just in France for a few weeks. Lancome is the drugstore brand, and L’oreal is the department store brand.
@Nicola: While pigments are expensive, they are typically used at very low levels so it’s unlikely that the “cheaper” product would cut corners by adding more fillers instead of colorants.
OK first let me say I just discovered this blog and I am f**king in love. Seriously. I’m an aerospace engineer and I LOVE make-up so this site = big time win in my book!
Secondly: I’ve used a plethora of beauty products–both drugstore brands and luxury brands. And let me tell you there is a STRIKING difference between the two. The more expensive brands last way longer and they do not irritate my skin/eyes as much as the cheapie stuff. Seriously. So I do think you’re paying more for a better formula with less fillers when you buy the expensive stuff. I try to save up my money for the expensive stuff, always, and I never really seem to go for the cheap stuff in my makeup stash when it’s time to put on my cosmetics for the day/night…mostly because I know they won’t last as long and I will need to reapply. And no one likes teared up eyes because of bad mascara or eyeliner or even shadows. The metallic eyeshadows are the worst and this is sometimes even true of the more expensive stuff as well!
Hello Kate,
As a scientist I’m sure you are aware of the psychological effects of buying expensive brands over less expensive ones. If you did a blinded study, I’m certain you would have a difficult time detecting a difference between an expensive brand and a less expensive one. Try it yourself. Have a friend code different products and give them to you on a blinded basis. See if you can tell a difference then. Our minds are very good at tricking us to see differences that aren’t really there.
Hey,
I live in France, Lancome is department store and Loreal is drugstore. Nowhere is it the other way around, that’s just a ridiculous thing to say!
Thanks for a great article, would love to see some comparisons between expensive/cheaper brands owned by the same company if you guys ever did that *hint, hint*
Great idea. We’ll work on publishing something like that.
Thanks for posting this . I have always been interested in finding out if Lancome products were indeed the same thing I could find with Loreal. My income has gone down so I am looking for cheaper make up. What I have found is I have spent a lot of money on cheap junk looking for the perfect makeup. By the time I am done I have bags full of junk make up that I end up throwing out. I walk around with a orange looking face , It takes me 5 min just to get a decent shade of eye shadow on because I have to keep sweeping for a color. The eyeliners can barely be sharpened or they have about one 1/4 of a inch of actual crayon in them. I have started returning them to the drugstores I buy them from though but it is slightly embarassing As Marianne stated comparisons would be so great , between expensive and cheaper brands owned by the same company! Thanks Beauty Brains. You have a new fan! Keep up the good work!
@Julee: You’re welcome! If you have questions about any specific questions let us know and we’ll try to help.
I love Lancôme absolue moisturizer, I’m unsure of what loreal face moisturizer would be comparable to this product? Do you know which one is very comparable as far as ingredients?
Thanks for your time,
Patricia