If you were wondering why nail polish companies are still struggling with the high cost of ingredients, now you can get some answers.
Nail polish maker L’Oreal’s flagship brand, Nail Care, recently posted a statement on its website stating that the company is still struggling financially.
“We are still in a state of transition as we try to navigate the global landscape of manufacturing and distribution,” the company wrote in the statement.
“At the same time, we are still investing heavily in our manufacturing, and have successfully developed some very promising new products for our global customer base.”
L’Orefa has been the subject of a wide-ranging media frenzy since the news broke last week that it had closed its plant in Mexico.
The company has been accused of using workers to make its products and selling its products at artificially low prices to boost profits.
“L’Oréal has never been known for innovation,” said Joe Krieger, senior vice president of global product management for the International Labor Organization.
“It is clear that the global manufacturing chain, from its manufacturing base in China to its distribution in Europe and the U.S., has lost its way.”
According to a report from the United States Chamber of Commerce, L’Orab has more than 1,200 employees in Mexico and that it has no plans to lay off workers there.
However, the company’s Mexican operations, which have been shuttered for nearly a year, are still profitable, according to the report.
L’Occitane is not the only major brand struggling to survive in Mexico, according the report, with other top brands including Zara and Gap struggling to maintain a profitable presence in the country.
“Mexico is a highly competitive and volatile market,” said Kriegers.
“Its economy has shrunk, its labor force has shrunk and many of its industries have been hit hard.
It’s time to recognize that and to take a hard look at where the brands can and should be focusing their efforts.”
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