During the stressful times of the pandemic, when every brand was struggling just to stay afloat, L’Oréal was one brand that grew 65% representing 25% of the revenue as stated by its chief digital officer Lubomira Rochet said during a marketing roundtable conversation recently convened by Business Insider.
Furthermore, its e-commerce business made it possible to cover more than 50% of its losses in the brick-and-mortal during the pandemic, and it’s expected to account for 50% of its sales by the year 2023. The company’s business online business was leveraged to cover up these losses. There was a growth in online sales by spending more on platforms like Amazon that are performance-driven, SEO to increase online customer traffic to its own websites, and on ad formats like YouTube for Action.
The brand has also been spending on virtual try-on technology along with social commerce and product personalization to create a better experience for the customers. Its try-on technology, ModiFace is available across 15 other sites and apps including Amazon, YouTube, and Google Search.
With ModiFace, the Beauty experience is re-invented since it has unique technologies to show real results in real-time. Virtual makeup try-on, virtual hair color and augmented reality shopping- the customers can enjoy the red carpet treatment, anytime and anywhere. From virtual try-on to smart mirrors in stores and to our newest device, Perso, ModiFace empowers its users to discover, try, and choose products that best match their needs.
L’Oréal also invested in a social commerce platform, Replika Software which lets its influencers, makeup artists, and hairstylists use the products to sell them directly to people online.
“L’Oréal brands have all embraced the trend of social commerce and have experimented with different models — influencers, e-beauty advisors, as well as consumers — with very promising results,” Rochet said. “We want to crack this new e-commerce channel that has a very strong potential in beauty and build a solid ecosystem of advocates and social sellers around our brands.”