Why L'Oreal's CEO Sees It as a Tech Company

Introduction

• Event: CES (Consumer Electronics Show) keynote.
• Speaker: Nicolas Hieronimus, CEO of L'Oreal.
• Claim: L'Oreal is a beauty tech company.

Key Points

L'Oreal as a Tech Company

• Participation in CES: Attending for over a decade and won CES Innovation Awards.
• Impact of Technology: Enhances beauty products and affects everyday life.
• Product Innovations:
  • Lancôme's Hapta: Motorized lipstick applicator for limited dexterity.
  • 3D Shu:Brow: Prints eyebrows onto the face.
  • AirLight Pro Hair Dryer: More moisturizing, energy-saving, and faster.
• Acquisition: Gjosa, a Swiss startup in water fractioning.

Strategy and Innovation

• Beauty Tech Leadership: Aligns beauty with technology for personalized, inclusive, and sustainable beauty.
• Innovation Approach:
  • Focus on solving consumer problems and needs.
  • Collaboration with startups (e.g., worked with Zuvi for AirLight Pro).
• Examples of Products:
  • Meta Profiler: Skincare diagnosis.
  • Colorsonic: At-home hair coloring solution.

Acquisition Strategy

• Not Actively Acquisitive: Considers brands and technologies complementary to current offerings.
• Historical Acquisitions: Majority of L'Oreal brands were acquired.
• Case Studies:
  • CeraVe: Grew from $150 million to over $2 billion in revenue.
  • Gjosa: Focus on environmental sustainability, not profit.

Sustainability Strategy

• Historical Commitments: Reducing CO2 emissions, plastic use, and green energy usage.
• Future Goals:
  • 100% green energy by 2025.
  • 95% bio-sourced ingredients by 2030.
  • Tackling Scope 3 emissions through collaboration.
• Incentives: Sustainability achievements linked to financial KPIs.

Market Outlook

• Current Trends: Beauty market resilient and growing despite economic challenges.
• Consumer Behavior:
  • Beauty as an affordable luxury and emotional balm.
  • "Dopamine effect" during tough times.
• Historical Growth: Consistent growth with exception in 2020 due to store closures.

Conclusion

• CEO's View: Positive future for beauty market due to its emotional and economic appeal.
• Company's Stance: Continuing to innovate and integrate technology into beauty solutions.