Introduction

 What is the company that you would like to discuss in the presentation? You must specify the country.
 What makes this company suitable for the discussion of digital business/ digital transformation?
 Overview of the business, e.g., current performance

The company that I have chosen is Loreal, knowing is a Digital Transformation total Cosmetics company.
And the country I’m going to talk about is China, which is known to be the brand second largest market
worldwide.
The reason Loreal is my prioritize is because the company by having the reputation as the world biggest
cosmetics company and also being a First-lead Digital Transformation brand in the beauty industry. It is
interesting for deeper understandings about how the company becomes strong and valuable in the world
Technology industry, as it holds quite a $614.7 billion in digital spending, which accounts for 20% of total
global retail sales. Moreover, the significant affect of the lockdowns has turned China to be the most
valuable asset for L’oreal to become extremely active.

Research and Analysis 

Within the Digital Leadership Framework, we have discussed 4 areas of change: business, value chain,
customer, organization. In this section, you only need to discuss 2 areas: the Business and 1 additional area
that you choose.
If the chosen company is undergoing a digital transformation:
 What is the company's traditional business model? How has it changed?
Traditional business model:
Launched in 1997 was known as a franchising traditional business model. Over the years, China L’oreal market
has gradually mature, until 2012 did technology involve that “consumer-centric 6 power model” becomes the
brand’s prioritize business model.
o How does the company create, deliver, capture, and defend its value, traditionally and digitally?
TRADITIONALLY:
Create:
 What are the changes in other aspects of the business?
o Has the business scope changed?
Yes, over two decades, China L’oreal is more and more trying to expand their business, not only in
makeup products, but also hair, skincare or professional uses. E.g. introduces 22-brand portfolio in the
country, build an R&I center in 2005, involve in China’s technology transformation,… Moreover,
according to ………, Loreal tries to open its target customers from not only high but also middle class,
as this is the most contribution members of the economy.
o Does the firm still stay within its core competencies?
The most important core competency of L’Oreal is its product innovation. L’Oreal is always looking for that
extra something in their product. The company devotes the maximum time in research and development.
The products which finally come out have gone through a lot of research because L’Oreal believes in
research a lot.
 “New category, new ingredient, new technology, new mechanism, new claim, and new occasion”

Select 1 out of 3 below to analyze:

 What are the changes, regarding customer interaction?
In the past, L’oreal main stores were and are locating in department stores, which its traditions bring
challenges for the brand. Therefore, after the bombastic development of technology, L’oreal has eventually
changing the way they interact with customers.
o Has the firm opened any new channels (online or offline) for customer acquisition?
Yes, adding flagship and pop-up stores. (giai thich vi sao open stores, so lieu)
Open online stores (On their own websites and e-commerce app – Alibaba)
o What are the main activities that the firm uses to improve customer engagement?
To improve customer engagement, L’oreal has been actively open campaigns knowingly, “Sharing beauty
for all”, which leads to the launch of new app – ModiFace to blur the distance of online and offline
shopping experiences.
BeautyCam app on Shopee
Double 11 event  Pop up store, bringing exp from Paris to Shanghai
Loreal futures programs: digital campaigns, e commerce shopping day, press conference and exhibitions.
Tyle

CHINA L’OREAL
Evaluation - In this section, you will evaluate the effectiveness of the digital business model or digital
transformation based on your research and analysis. E.g., Company X invests in omnichannel, it will be
effective in the long-term because... However, it is not effective in VN now because…
 Evaluate the effectiveness of the company's digital business model or its digital transformation in the
country that you specified above
o If the company is doing well, please provide some forms of evidence. Vice versa, if the company
is not doing well, do you expect that would change?
 Would those strategies be effective in another country? Why or why not? You must select a specific
country for comparison. 
I think the company has been doing the Digital Transformation in China in a great way. For instance, in 2020,
Alibaba…

Therefore, those strategies may actutally work well, especially Vietnam.

According to ………………, in 2020, Vietnam’s ecommerce market has reached 49 million Vietnamese users,
which means, half of Vietnam citizens are using this kind of method to buy cosmetics and skincare products.
Moreover, it is announced by Q&Me that in 2019, Shopee and Facebook by knowing to be the most popular
apps to promote virality, L’oreal brands – Kiehls, Lo Roche Posay,… have been doing very well in those sites.
Moreover, every Vietnamese modern woman, which consists of 70% living in the cities, know and
acknowledge the two big retailers namely Guardians and Watsons, which both store consists at least 3 out of 22
brands profolios of L’oreal products. Therefore, those strategies, including the uses of Omni channel effects,
would definitely lead to the rise in customers consumption for this company.

Conclusion
 Provide a summary of your presentation’s key finding/ analysis
Digital Transformation