The cosmetics giant L'Oreal is out to capture new markets in the global cosmetics industry by acquiring local brands with intrinsic customer value, and promoting them worldwide.

A L'Oreal executive was one of several experts to speak at IESE Business School's annual Prestige Brands Industry Meeting. The meeting brings together European executives and academics, as well as other experts, to reflect on the latest trends in the world of luxury products and services.

Chief among the topics examined at this year's meeting were volume and exclusivity, globalization, reappraising prestige and integrating design. Prof. Pedro Nueno of IESE and Prof. Michel Chevalier of ESSEC Business School, led the event, which was jointly sponsored by IESE and ESSEC.

In a session on globalization, Catherine Fulconis, Director of Development for L'Oreal Luxury in Paris, described how L'Oreal brands Kiehl's Since 1851 and Shu Uemura are product lines that remain true to their cultural roots but have worldwide appeal. While Kiehl's identity is one of a very simple, old-style New York apothecary, Shu Uemura conveys high-end Japanese luxury.

Fulconis said her company takes a methodical and rigorous approach toward researching local cultural concepts of beauty and style, in order to adapt products appropriately and boost sales, she said. "The more popular a brand is, the more it must reflect local sensibilities."

When L'Oreal acquired the U.S. brand Maybelline in 1996, it was considered a "dowdy" brand known mainly for nail polish. Through a localized adaptation of the product line and a new marketing spin, Maybelline has become the biggest-selling brand of cosmetics in China and a favorite among Japanese teen-agers.

"Young people are increasingly united around the world," she noted, by virtue of the fact that they listen to the same music, watch the same TV programs, wear the same brands of clothing and all communicate through the Internet.

"They think of themselves as part of a new mega-culture that is hip and dynamic," she said. As a result, differences between people today are increasingly generational, rather than cultural or geographical.

Yet L'Oreal - which has operations in more than 150 countries and ownership of French, Italian, Japanese and American brands - still operates under the belief that definitions of beauty remain markedly different across cultures.

"We believe that we cannot impose our vision of beauty on the world," she said.

Others participating in this year's meeting were Javier Cano, President of Puig Beauty and Fashion; Peter Sosnkowski, Remy Cointreau Worldwide; Caroline Vlerik, Managing Director, Cortefiel and Pedro del Hierro; Gerald Mazzalovo, Visiting Professor and Former President of Bally; Mark Cornell, President of Cognac Hine (LVMH Group); Mamen Lladró, Executive Vice-President, Lladró; Antonio Miró, Designer and President of Toni Miró, and Fernando Zallo, Managing Director of Toni Miró. The meeting was held in Casa Batlló, the Barcelona landmark designed by the architect Antoni Gaudí.