How L'Oreal India is Transforming from a Beauty to a BeautyTech Brand
How L'Oreal India is Transforming from a Beauty to a BeautyTech Brand

L’Oréal has constantly evolved to anticipate newer expectations of consumers. For a few years now, the brand has been focusing on a digital transformation across its organization that deploys new technologies to enhance its products and customer experiences. 

“BeautyTech refers to using the power of technology to create enhanced beauty experiences. The way consumers discover, test, and buy beauty products and brands is ever-changing. They expect an enriched experience - enhanced services, customization, and personalization; and BeautyTech enables that. Whether it’s online consultations, skin diagnostics, virtual try-on, speed in bringing new products to market, or purchase through voice technology, our aim is to create a bespoke and fully integrated physical and digital experience, based on customer expectations,” Anil Chilla, Chief Digital Officer, L'Oréal India explains.

“As a leader in BeautyTech, we are leveraging technology to enhance our products and customer experience. In 2018, we bought ModiFace – an augmented reality company using this technology to offer virtual try-on for make-up and hair color and one-on-one beauty consultations via video chat; which has proved especially useful while stores are closed,” he adds.

ModiFace allows customers to try on dozens of shades of make-up and hair color. Its virtual try-on technology uses an advanced face tracker algorithm that detects where customer’s lips, eyes, cheeks, hair, etc. are and applies virtual cosmetics on this zone, to give them a real-time, true-to-life view of the products. 

“Our investments in AI/ AR have also enabled us to make a skin ‘diagnosis’ based on a selfie, or use virtual reality to try out a hair color or makeup,” he adds.

Leveraging Analytics

L’Oréal uses analytics both for top-line expansion and bottom line optimization and to automate as many processes as possible. For example, Digital Cockpit is used to understand how it is executing on digital marketing.

Data and AI are for example used to innovate and personalize the consumer experience. For example, Continuously optimizing the Virtual Try-On (VTO) experience with Modiface.

“Data and AI are used to optimize and automate certain processes from demand forecasting to media buying. Our research and innovation teams use social listening and online review analysis tools to understand the emerging ingredient trends and feedback on existing products in the market,” he shares.

Virtual Try-Ons

Through our acquisition of Modiface, L’Oréal has been at the forefront in offering virtual try-on for make-up, hair color, and one-on-one beauty consultations via video chat. 

“This proposition became more compelling especially during the lockdown with the closure of stores. Trying on the product virtually removed the friction from the physical environment, of access to multiple shades, removal after every trial, safety, and cleanliness, which are important as we are amidst a pandemic. In fact, we witnessed a 2x increase in engagement with AR tools online compared to pre-COVID time highlighting the efficacy of virtual try-on,” he asserts. 

“Since the onset of the pandemic, we have removed all physical testers from the stores. Now we have built QR codes mapped to the SKUs that allow consumers to scan the QR code and virtually try-on the product right then and there,” he adds. 

Turning Pandemic Into An Opportunity

The pandemic has undoubtedly led to changes and, in some areas, acceleration of existing trends in consumer behavior within the beauty category. 

Since the onset of the pandemic and the mandate for self-isolation, there has been a rise in self-care and DIY beauty. At-home hair color sales have grown, driven by an explosion of e-commerce transactions bringing new users back into the at-home hair color category. 

“Our brands have moved to address this trend effectively by educating them on DIY and enabling them to pick the best care solutions digitally, using digital channels and online training to guide consumers in their DIY journey. We have hosted numerous live-streaming sessions with our brand experts as well as influencers to interact with consumers and help educate them on DIY hair coloration, eye makeup trends, makeup for video conferences, etc,” he says.

There is also heightened concern for health and safety. The skin-cleansing category has seen an increase in usage. Interestingly, this has also led to the increase in demand for skincare products – as people are washing more frequently, they experience dryness of skin, which leads to the usage of more care products. 

“On the other hand, color cosmetics were initially impacted during the pandemic. Once the lockdowns eased, we saw a surge of buying in this category reaching almost the same levels as before the pandemic,” he states.

Online purchasing habits are evolving, presenting new opportunities for brands.18 percent of people bought personal care or beauty products online for the first time during the initial lockdown. New commerce channels are evolving as well. We have all experienced ordering groceries, services on these channels. 

“With salons being shut due to the lockdown, we built a new social commerce model for our salon partners, enabling them to drive retail business for salons. Empowering more than 20K salons and training over 80K hairdressers in the process,” he asserts.

Evolving Digital Strategy

Online purchasing habits have evolved, presenting new opportunities for brands. This leads to a huge penetration-led growth in the beauty categories. Consumers now have access to world-class brands at their fingertips and this is helping drive purchase. The emergence of a low-touch economy is further helping brands like L’Oréal to accelerate digital transformation and optimize it for content, marketing, and sales.

“We are in fact enabling a purely offline experience, online now,” he concludes.
 

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