From Content Factory To Internet of Things (IoT), L’Oreal Is Going Digital All The Way

by Trefis Team
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L'Oreal
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After a beauty product is sold, the company loses its connection with the customer. It is impossible for the company to find out if the product caused an allergic reaction to the user or did it provide the expected results? Can beauty products connected to the internet be the answer? L’Oreal (OTC:LRLCY) seems to be exploring this idea. At a cosmetic conference in Paris, Feeligreen, a start-up, exhibited a newly developed skin care device based on the Internet of Things, that tracks usage and sends data back to the manufacturer to feed into product development and marketing. According to an article published by Marketing, L’Oreal is interested in this product. [1].

See Our Complete Analysis for L’Oreal Here

L’Oreal has undergone a digital transformation in the past few years and its e-commerce sales are surging.  It is already ahead of the game in its digital initiatives which include launching beauty apps, developing flexible wearable electronics to collect and transmit data from the body, and extensive use of social media marketing. Linking its products via the Internet of Things (IoT) could be a game changer in the beauty industry, since it provides a crucial link with the user after the product is sold. The technology can also provide skin care recommendations to the consumer, thus enhancing the customer experience. While this innovation is at a very nascent stage currently, it can help beauty companies in both marketing and product development by tracking the usage of their products. Reminding consumers to use their products, tracking frequency of usage, and feedback on the impact of the product on the user could be valuable features,  and L’Oreal’s interest in this technology demonstrates its keenness to take its digital initiatives to the next level.

On November 13, L’Oreal celebrated the official opening of its first worldwide Content Factory in Canada. [2]. This studio, which provides professional lighting, photography, and video equipment, would be open to all employees where they can create original content for their brands, such as make up tutorials, how-to videos, product shots, and other customer related material for digital platforms.  L’Oreal aims to use this content to increase digital engagement with its consumers.

We believe digital initiatives could be a key driver of L’Oreal’s growth in the future, and the company is showing a strong commitment towards a digital future, ahead of its competition.

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Notes:
  1. Why P&G and L’Oreal Are Exploring The Internet Of Things, marketingmagazine.co.uk, November 16, 2015 []
  2. L’Oreal Canada Inaugurates The Very First Worldwide Content Factory,Broadcaster, November 23, 2015 []
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