The New Era of L’Oreal (and Makeup?)

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The New Era of L’Oreal (and Makeup?)

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.


3 Comments

Keagan Ross

Keagan Ross

October 29, 2018at 12:00 pm

It amazes me how much consumers now demand an “experience” when shopping for products. Now, more than ever, people need engagement and technological interaction before making a purchase. I think it’s interesting that this has become present in the makeup industry, an industry that I’ve often considered only product-based. It will be interesting to see how much L’Oreal does with this development.

Heather Giles

Heather Giles

October 29, 2018at 1:22 pm

I think that you are right to conclude that branding will remain important in the future. However, I am not so sure that extending their products to an app qualifies as providing a service. I had initially pictured L’Oreal providing a service as a makeup artist and stand like you might find in a mall from of higher-end competitors such as MAC. However, I do not think this fits in with L’Oreal’s brand as a low-cost cosmetic provider. As for their digital marketing, using influencers is definitely the right way to go in today’s digital age.

Sophie Bluestein

Sophie Bluestein

October 29, 2018at 1:42 pm

This blog post was so interesting. I love makeup and beauty products and Loreal is one of my favorite brands. I have never heard of the Modiface. It sounds so helpful and I am going to check it out. I think it is extremely important for brands, especially in the beauty industry, to focus on more of the service side. We all desire different things from our beauty products. it is not just about the product itself, but what the product can do for you and your skin.

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