L’Oreal has recently announced a company shift from focusing on selling products to instead providing services. The company has stated that companies that just sell products will not be successful in the future. Even the L’Oreal CMO of Western Europe said that services are the key ingredient to finding and engaging consumers. The beauty industry has exploded in the past few years, no doubt with the help of social media and beauty influencers, so I believe L’Oreal is right to alter their focus. With so many viable cosmetics options for customers to choose from, there needs to be something more than just a product to influence their preferences.
An example about how L’Oreal has begun their shift to a service-based mentality is through an app called Modiface. This mobile application allows users to try out different makeup looks and hair products before purchasing them in store. Although the impact the app had on sales is uncertain, the engagement from the app was considerable.
Because the onset of technology intertwined with marketing was so quick, L’Oreal has had difficulty identifying a new market, media mix, etc. Several actions the company took to aid this process was bringing all their marketing in house as well as pushing more targeted ads. One thing, however, that L’Oreal does say will remain the same is the importance of branding and loyalty, especially in this constantly growing industry.