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L'Oreal: Embracing Technology in Beauty

Apr 22, 2025

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.