How L'Oréal Adopted New Technologies To Scale Personalisation, Adapt To New Customer Demands and Evolve Into The Top Beauty Tech Company
How L'Oréal Adopted New Technologies To Scale Personalisation, Adapt To New Customer Demands and Evolve Into The Top Beauty Tech Company
technologies to scale
personalisation, adapt to new
customer demands and evolve into
the top beauty tech company
Received (in revised form): 7th May, 2021
JaKenna Gilbert
Nordic Group Digital Director, L’Oréal, Denmark
JaKenna Gilbert is the Nordic Group Digital Director at the L’Oréal Group. She leads the Nordic hub in
creating innovative digital strategies that meet consumer needs, building long-term brand equity through
best-in-class digital experiences and ensuring the various L’Oréal brands have an advanced digital
footprint in the region. She has over 10 years’ international experience in digital marketing.
Abstract Across the globe, the COVID-19 pandemic has had a massive — and likely
long-lasting — impact on commercial and consumer trends. For companies specialising
in consumer packaged goods and traditionally reliant on physical stores for the majority of
their sales, success is no longer about staying relevant, but rather on preparing for a world
where significant portions of their business will emanate from e-commerce. With brick-
and-mortar sales declining and consumers becoming more tech-savvy, this paper argues
that beauty companies (both large and small) must look to advanced ways for customers
to discover, consider and purchase beauty products. By way of illustration, the paper
describes how L’Oréal embarked on a programme of digital transformation that would
prepare it to outlast the current context and continue to advance in spite of a challenging
market.
THE HISTORY OF BEAUTY TECH face, chooses the products or looks to try
AND SERVICES AT L’ORÉAL on, and the app renders the products onto
L’Oréal first began its digital services the face. These were the beginning stages of
transformation with the launch of the makeup VTO and, in practice, AR was yet
augmented reality (AR) app, Makeup Genius, to be seamlessly integrated into everyday
in June 2014.1 Developed in-house for the lives. As an example, Snapchat launched in
L’Oréal Paris brand, Makeup Genius placed 2011, but the now popular Lenses feature
the power of makeup virtual-try-on (VTO) for which the app is most known was not
directly into consumers’ hands. The app was introduced until 2015 with the acquisition of
a simple interface. The consumer scans their AR and selfie animation app, Looksery.2
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health, cosmetics and personal care products, • the face category (consisting of
and despite lockdown, generated a revenue foundation, bronzer, blush, concealer
of over US$606m in 2020.11 Matas has fully and other sub-categories) generated
embraced digital transformation, and the a conversion index uplift of 133 on
local L’Oréal teams collaborated directly Modiface PDPs versus non-Modiface
with the retailer to prioritise makeup VTO PDPs; and
implementation on the Matas website, on all • ModiFace PDPs generated an average
makeup PDPs within the L’Oréal product session duration of 13 minutes and 15
range, including for such brands as Lancôme, seconds, while non-ModiFace PDPs
IT Cosmetics,Yves Saint Laurent Beauté, generated an average of only 2 minutes
Giorgio Armani Beauty, Maybelline, L’Oréal and 27 seconds.
Paris and NYX Professional Makeup. The • Key takeaways:
following outlines this strategic collaboration • Engagement and conversion:
in more detail, highlighting the project – there is a clear correlation between
objectives, the observed results and the ModiFace engagement and
subsequent key takeaways that continue to conversion, indicating that increasing
shape the ongoing partnership: site traffic to services will have a
positive impact on conversion and
• Objectives: profitability over time;
• prioritise the delivery of – there are differences in which
industry-leading and personalised categories and sub-categories are
beauty services to Matas consumers; driving higher performance, with the
• implement ModiFace makeup VTO lips category generating a conversion
within all applicable PDPs within the rate that is more than twice as much
L’Oréal product ranges; as non-ModiFace PDPs in the same
• bring VTO and beauty services closer to category; and
the point of purchase; and – the majority of engagers prefer Live
• gain insights into shopping behaviours Mode, which means this experience
and usage of VTO and services during must be as optimised, seamless and
the purchase cycle, and the ensuing frictionless as possible to ensure easy
impact on conversion. usage and thus foster conversion.
• Results, 1st December, 2020 – 4th May, • Services visibility: This is a crucial
2021: element to drive customer engagement
• a total of 78,849 site visitors engaged and reach performance targets. The
with ModiFace; Matas and L’Oréal teams have developed
• of those site visitors, 85 per cent aligned animation planning to increase
preferred engaging via Live Mode awareness and visibility across several
rather than Photo Mode; touch points and activate consistently,
• across product categories, a total of including the following channels:
394,705 shade variations were tried on; – on-site trade visibility via homepage
• when comparing conversions on PDPs placements, landing pages and brand
with Modiface versus PDPs without universes;
Modiface, the Modiface PDPs show an – influencer activations across social
index uplift of 133; media and other platforms;
• the lips category (consisting of lip – in-store visibility and seamless access
gloss, lip liner and lipstick) generated to services via quick response (QR)
a conversion index uplift of 219 on codes or iPad integrations; and
Modiface PDPs versus non-Modiface – retailer and brand media on owned
PDPs; channels and platforms.
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just replenishment. Support these shifts L’Oréal is continuing to meet this rising
by offering services directly on retailer market demand by extending the ModiFace
sites in order to provide consumers with technology to all skincare brands across the
high-quality online experiences that portfolio and connecting each product to
support product research, engagement and analysed skin attributes with the ability to
conversion. offer tailored product recommendations.
Scaling to retailers with this category-level
Phase 3: Scaling skin diagnostics solution is underway — with the first
during COVID-19 retailers implementing the SDKs in progress.
During COVID-19 lockdown periods, This is consumer centricity at its apex —
consumer shopping trends have shifted providing superior service, meeting demands,
heavily in favour of skincare products that offering a multitude of products, while being
benefit and complement longer time periods hyper-personalised and relevant.
spent at home. Most notably, the aptly
called ‘cocooning’ trend has surfaced across Takeaway
influencers, bloggers and social media mavens While the makeup category is being
as consumers are opting for new skincare challenged by the ongoing global pandemic,
products and regimens to pamper and treat the skincare category is growing. L’Oréal is
themselves while in lockdown or quarantine.12 fuelling this by expanding ModiFace services
L’Oréal’s annual results for 2020 mirror to include skin diagnostics, offering virtual
these trends, with the skincare category analysis of skin quality to provide consumers
growing fastest of all. The Active Cosmetics with personalised and bespoke skincare
Division within L’Oréal, encompassing regimens.
the skincare brands La Roche Posay,Vichy,
CeraVe, Decléor and SkinCeuticals, saw
tremendous growth during 2020, with PREPARING FOR THE FUTURE TODAY
13 per cent like-for-like growth and sales E-commerce now encompasses a
exceeding €3bn.13 record-level 26.6 per cent of L’Oréal’s total
Increasing consumer demand for skincare global sales, increasing 62 per cent over
products coupled with closed stores gives 2019.15 Much can be attributed to the
rise to ample service-oriented opportunities, COVID-19 impact on brick and mortar
focusing on overall skin diagnostics to closures, but the growing trajectory of
assess various elements of the skin with e-commerce is embedding itself deeply into
hyper-precision to deliver hyper-personalised consumer behaviours. L’Oréal is continuing
recommendations. to fuel e-commerce internally with newly
Via the ModiFace technology, formed digital roles, ambitious e-commerce
several L’Oréal brands, including Vichy’s targets and stronger retailer partnerships that
SkinConsult,14 dive deep to analyse skin are supported and further fuelled by this
attributes like radiance levels, pore quality obsession with beauty tech and services.
and firmness in order to provide tailored The Group has to continue accelerating
product and routine recommendations. These and scaling services in order to bridge
analyses are incredibly informative for the any consideration gaps when consumers
consumer, providing much needed guidance are in the purchase cycle, particularly if
when making a first-time skincare purchase. in-store dynamics shift, lockdowns ease and
When combined with an e-consultation shoppers continue to embrace online buying
to discuss results, the consumer is also behaviours.
thoughtfully and carefully guided towards The future of beauty tech and services is
purchase with confidence in the products. starting to present itself in different ways, all
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How L’Oréal adopted new technologies to scale personalisation
of which are encompassing AR, AI, platform products, and launched in 2018 shortly
integrations and direct links to e-commerce after the ModiFace acquisition. This strong
purchasing behaviours. The following partnership has kept beauty innovation at
outlines the current beauty tech integrations the core of the Facebook user experience.
that are enhancing consumer experiences
and engagement across platforms: Takeaway
Platform integrations allow VTO and
• ModiFace and WeChat bring VTO to services to scale much further than just a
messaging: While the western world brand or retailer’s website. This scale reaches
continues to advance and accelerate VTO consumers when they are at critical points
and services across categories, products along the purchase cycle and begins to
and brands, L’Oréal Asia Pacific has reduce barriers to technology adoption that
integrated ModiFace VTO within the will push AR and AI over a tipping point
WeChat messaging application, piloting and into the mainstream.
a mini-programme with Giorgio Armani
Beauty that links directly to a shopping
experience within that programme.16 The WHAT DOES THE FUTURE LOOK
WeChat integration also gives customer LIKE?
care teams the power to utilise VTO L’Oréal has made impressive strides in
during chat sessions, recommending shades driving the adoption and integration
and products during direct conversations of beauty services around the world
with customers. through owned and retailer platforms,
• ModiFace and Amazon bring VTO to the as well as strategic platform integrations.
world’s biggest e-commerce company:17 L’Oréal The proliferation of and increased access
has further expanded the ModiFace to VTO and AI/AR services, however,
reach by partnering with Amazon to add provides a glimpse into a future where
VTO to applicable L’Oréal PDPs in the people’s homes and lives are even more
USA, the UK, Japan and Canada.18 As connected through technology. For
the world’s biggest e-commerce platform, example, connected mirrors and smart
53 per cent of product searches begin on beauty mirrors are already in stores, making
Amazon,19 and this integration provides it possible for consumers around the
a dedicated base of beauty buyers a way globe to try products at the point of sale.
to try thousands of products virtually It is surely only a matter of time before
before making a purchase within the same consumers will be able to access VTO and
platform. skin diagnostics through connected mirrors
• ModiFace and Google bring VTO to the in their own homes. The possibilities here
search results page:20 In late December are extremely exciting — imagine a mirror
2020, L’Oréal and Google announced the that provides skincare recommendations
ModiFace integration directly into Google based on one’s skin analysis in real time,
Shopping formats. This brings VTO into helping to combat dark circles or dull skin
a very important step along the consumer after a restless night. Once the skincare
journey, as 23 per cent of shoppers use regimen is underway, the connected mirror
Google to research products before will then assist with a makeup look for the
making a purchase.21 day, providing VTO options and suggesting
• Modiface and Facebook bring VTO to the potential looks. Although such products
social media experience:22 This long-term are not yet on the market, given the rate of
collaboration facilitates AR experiences VTO and services adoption, the future is
delivered directly via Facebook Camera approaching quickly.
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