L’Oreal SA is the world’s leading manufacturer of cosmetics, perfumes, haircare, and skincare products. It has brands in more than 150 countries globally. The company has well-established research, innovation, and marketing centers across the globe, which ensure they manufacture cosmetic products at the local level that adapt to the needs of customers in each country.
The company is distributing products divided into four divisions, namely consumer products, professional products, L’Oréal Luxe, and active Cosmetics. These products are sold through wholesalers, retailers, Pops & Mons stores, supermarkets, health/beauty outlets, pharmacies, direct mails and online websites.
In October 2020, the Luxe division of the corporate decided to shut a number of its shops within the USA and shift focus to e-commerce. Since then, the corporate has accelerated its online channel in the recent past. Since 2019 due to the coronavirus, its e-commerce improved far better than alternative retail models. Currently, 20% of L’Oreal’s revenues come from its branded websites or those of online retailers like Amazon, Boots, Walmart, and AS Watson that use L’Oreal’s virtual try-on technology known as ModiFace to their websites and apps.
Within the 1st quarter ending March 2021, online sales grew by 53% compared with the same period in 2020. It’s currently adopted new selling tools, like virtual try-ons for make-up and one-on-one beauty consultations via video chat, to rescale its online sales. Further, L’Oréal has shifted its advertising online, raising it to 70% from 50% before coronavirus. As a result, e-commerce grew in new places like Latin America, where sales jumped by 300% in Apr 2021. Online sales in Africa and the Middle East, additionally grew by 400% in the same period.