L’Oréal in Mainland China: beauty goes from big to huge

When digital dovetails with omnichannel

Omnichannel distribution is the new reality worldwide, but it’s particularly crucial in China, where it has been rolled out on a grand scale. Thanks to the complementarity of online and offline activations, brick-and-mortar points of sale, like the new L’Oréal Paris flagship store in Shanghai, invite consumers to enjoy immersive high-tech experiences. The fully revamped Shanghai store attracts not only loyal customers but also the new, ultra-connected younger generations who particularly appreciate experiences that combine virtual and real-life aspects. Inside, they are offered a unique opportunity to dive into the world of L’Oréal Paris via livestreams filmed in stores and hosted by beauty advisors, along with interactive screens and mirrors, video games, in-store gifts and discount offers through social networks, digital skin “diagnosis” by ModiFace, and more. The level of digital interaction available at the Shanghai store is just one example of the wide range of innovations the brands have developed. They produce content at a studio specially designed for omnichannel creations and share them with consumers via online stores such as WeMall, which are linked to brick-and-mortar shops. Social network WeChat, with its inherent ability to spread attractive, easily shareable content, has become the most popular point of contact with consumers.  

Innovation drives success

2021 was yet another year full of innovations in Mainland China, particularly in haircare. The Genesis fortifying range by Kérastase helps prevent hair fall due to breakage from brushing and was created based on keen consumer insight, including in depth knowledge and understanding of the needs and habits of Chinese consumers. It also involved advanced research on ingredients—such as aminexil and ginger root extract—for the formula. Developed in cooperation with French teams, Genesis is now a major international success. What’s more, our research on hair fall led to the development of Full Resist by L’Oréal Paris, a technology designed to strengthen hair and reduce breakage from brushing that features three active ingredients. Two of them are patented innovations developed by L’Oréal Research. Extraordinary Oil conditioner by L’Oréal Paris is also the product of collaboration between three regional Research & Innovation hubs, including the one in Shanghai, which all worked together to develop a formula using peptide and precious oil to nourish and restore hair fibres. At L’Oréal, innovation is a collective endeavour. Every time a local innovation is successful, we optimise it for global success.

Chinese Beauty Tech startups: key partners for L’Oréal

L’Oréal uses Beauty Tech to connect the world of beauty to the world of technology and keep pace with innovations: firstly, by perfecting its new services, like skin “diagnosis”, personalisation, virtual try-ons, livestreaming and social commerce, to provide unrivalled beauty experiences; secondly, by investing in new technologies to invent disruptive solutions which will underpin the new services of tomorrow.

In 2021, L'Oréal China launched the second edition of the Big Bang Beauty Tech Startup Challenge, upgraded to make the Challenge the new engine of tech innovation and growth for the Chinese beauty sector, also shaping China into a global centre of innovation. L’Oréal China collaborated with Oriental Beauty Valley in Shanghai to provide special funds, value chain resources and professional coaching to the selected startups, as well as with Business France for international cooperation. The event brought together 460 startups, and 10 winners were recognised for their innovations, which were as varied as they were exceptional: a skin “diagnosis” established using artificial intelligence, a virtual brand ambassador, and advances in the fields of Green Sciences and the microbiome. The event is a stepping stone for Chinese startups, which are reinventing beauty with L’Oréal’s help.  

L’Oréal China committed to protecting biodiversity

L’Oréal China continued to implement its L’Oréal for the Future programme in 2021, which focused on biodiversity this year. Partnering with major Chinese institutions, the Group organized a launch event that coincided with the COP15 global summit on biodiversity, which took place in China in October 2021. At the event, L’Oréal presented its commitment to protecting biodiversity through a host of different initiatives, including a partnership with the Chinese Foundation for Environmental Protection to roll out a “Special Fund for the Preservation of Biodiversity”, which finances awareness-raising campaigns on biodiversity, and L’Oréal Paris’s collaboration with the World Wildlife Fund and the Shanghai Museum of Natural History to protect Asian elephants. L’Oréal is also committed to raising consumer engagement with environmental issues by including awareness-raising content in the purchasing process, engaging consumers via immersive offline games and inviting them to back their favourite brands’ causes. For example, L’Oréal worked with well-known influencers to promote biodiversity. The Group also organised a special sustainable development theme day with the T-mall e-commerce platform and created a limited-edition Biodiversity set that included iconic products by six L’Oréal Luxe brands. 

L’Oréal stands with Chinese youth and women

As part of the international L’Oréal for Youth programme, L’Oréal China launched several projects to empower young people and help them get jobs. For example, it created the Youth Fund Charity Project, a student challenge which raises money to finance higher education for 5,000 young people with limited resources. The 2021 edition innovated by asking students to host a livestream presenting products by several Group brands via partner platform JD. To help them get started, participants were first given a training session on social selling, which is seen as a real asset in today’s business environment. During the finale, the livestream aired as part of a presentation on biodiversity, which was followed by a charity sale. The funds raised by JD and L’Oréal were donated to charities and scholarship funds for the students selected.

Brands are also taking action in favour of youth and women: Yves Saint Laurent launched the Abuse Is Not Love campaign, aiming to prevent and take a stand against intimate partner violence, and Lancôme initiated the Write Her Future programme, which provides online classes to empower female undergraduates with professional skills and enhance their career development.

The L’Oréal Corporate Foundation also supports women in China to help them reach their potential and take charge of their future through two programmes: For Girls in Science, which promotes education for young female students, granting them scholarships in scientific fields; and Beauty for a Better Life, which provides education on beauty skills helping women to obtain employment. Over the past five years, 8,000 women have benefited from the Beauty for a Better Life programme, of which 1,500 in 2021. 

Inclusive and collaborative new headquarters

L’Oréal’s China and North Asia Zone headquarters got a makeover in 2021 with the inauguration of the JH building. With several modular working spaces, including one for Beauty Tech, a training centre and a hairdressing academy, the offices also feature a wide range of innovative services to make employees’ lives easier and promote their well-being. Amenities include a massage room, collaborative work areas, a well-being centre, a young mothers’ room, dining rooms, and more. The more inclusive and more collaborative site aims first and foremost to provide the best possible conditions for employees, in line with L’Oréal’s social and Human Relations policies.