How L'Oréal is doubling down on e-commerce growth in the pandemic - Business Insider

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L'Oréal is banking on influencers and try-on technology to cash in on online sales — and it's made up for half its pandemic losses. Presented by ING_News

At cosmetics giant L'Oréal, e-commerce has grown 65% during the pandemic to represent 25% of revenue, its chief digital officer Lubomira Rochet said during aFurther, e-commerce made up for more than 50% of its losses in brick-and-mortar during the pandemic and is expected to account for 50% of its sales by 2023.

L'Oréal leveraged the growth in online sales by spending more on platforms like Amazon that are performance-driven; in SEO to drive people to its own websites; and on ad formats likeIt's also been spending more on virtual try-on technology, social commerce, and personalization. Its try-on technology ModiFace can now be found across 15 other sites and apps, including Amazon, YouTube, and Google Search.

"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.

The rise of e-commerce during the pandemic has also made marketing more conversational, with L'Oréal having a 40% rise in interactions with consumers across channels like Facebook Messenger and WeChat to pass 60 million interactions this year. That increase has given L'Oréal more data on which to base business decisions.

"We were able to track category shifts like hair color sales growing 300% and make-up falling 30% by managing data and insights not every quarter, but literally everyday," Rochet said. "Having our finger on the pulse of consumers is important also so that we can talk to them in the right tone.""There may be some disruption, but the Boots and the Carrefours in Europe are embracing omnichannel commerce and emerging as an alternative to Amazon," she said.

 

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ING_news Impressive to see how marketing and advertising shifted to influencers over the last years.

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