#DISRUPT BEAUTY 2030

L’Oréal Brandstorm 2022

TECH TRACK
Revolutionize beauty personalization & experience fueled by tech

• L'Oréal has always focused on globalization. It identifies, captures, understands, and respects
diversity in all domains. Here, we would primarily focus on leveraging technology to offer
tailor-made beauty, and meet the aspirations of consumers worldwide.

• Depending on the success of the product in L’Oréal Active Cosmetics Division we plan to extend
it to other divisions. Seeing the current market for customized products we believe that it
would be scalable to other groups as well.

• We would be majorly focusing on L’Oréal Active Cosmetics to help consumers in their quest for
healthy and beautiful skin. Based on the success of the products in this particular division we
would further extend it to Consumer Products, then Professional Products and finally L'Oréal
Luxe

• Elevator pitch:
Product (Smartwatch) – Every individual is unique
with diverse beauty desires. We would be using
technology to create bespoke beauty that is
customizable as per your skin type. A whole
world of virtual reality mimics your skin type and
other beauty appearance and provides you real-
time virtual trials of a variety of product ranges.
A device (smartwatch for now) using tech
hardware would monitor the hydration level,
amount of pollution exposure, daily activity
(including basic workout), sleep pattern, calorie
intake, amount of time spent working, and other
factors. On the basis of the analysis, once you log
in to the website or mobile app you would get a
set recommendation of the products you should
use on a daily basis for proper skincare. It would
include all products from sunscreen to the
foundation or lipstick that you apply.
Salon Service (3D Makeup Models) - We have
additional plans wherein you can log in through the
app and book for a complete makeover at your
nearest L'Oréal salon. Once you enter the L'Oréal
Salon, using our technical equipment (Professional
3D Scanning) we would first scan your face and see
what kind of transformations are feasible
considering your skin and hair type. We plan on
using advanced professional 3D scanning
technology to analyze and provide a set of feasible
transformations. Then you can choose which one
would be the best fit for you. You can select
everything from hair to makeup. Remember the
days when you used to create different model
profiles but imagine one that is designed by you,
for you.

#DISRUPT BEAUTY 2030

Significance of the product w.r.t innovation track:
Here we are introducing Tech for day-to-day monitoring of the consumer which allows
the consumer to have a better understanding of his skin type and his/her
requirements. Through this product we want to leverage the capacities of technology
and integrate it our daily lives to achieve better results. We understand that it takes
its time consuming to find the perfect dermatologist who would suggest the best
products for your skin. Hence we want to use this innovation to reform the use of
skincare products. Say goodbye to unnecessary trials and the numerous methods you
use to get over than one pimple or blackheads.

FEASIBILTY:
Product (Smartwatch):
• Currently, smartwatches from popular brands
like Apple, Samsung, LG, Acer, and Huawei. are
available across a wide price spectrum from $50
to $500.
• Assume the average price of Samsung Galaxy
Watch 4 (that marked its highest ​quarterly
smartwatch shipments in Q3 2021) to be $200
• Assume that the SP of the watch after upgrades
would be $300
• Current global population ~ 7.9 bn
• Assuming 60% to be regular L'Oréal users,
Regular Users= .6 * 7.9 = 4.74 bn
• Assuming 30% would buy and use the product,
Users Buying = 0.3 * 4.74 = 1.422 bn
• Initially we are planning to collaborate with
Samsung and see the response. Assume that
Samsung charges 40% commission hence revenue
after commission= 1.422 * 0.4 * 350 = $199.08
bn
• Assuming all the costs to be $100 bn
• Annual profit = $99.08 bn
Salon service (3D Make-up Models):
• Currently, 3D scan costs $100 to $1,000 or more
depending on the 3D scanning technology being
used, the size and complexity of the part being
scanned
• Assume cost of the machine after upgrades to be
$1500
• To customize products used in transformation as
per the user it would additionally cost $20-50 per
piece.
• They would at least use 10 products for the
makeover.
• Considering average cost of one product to be $50
and to further customize it the product used
should range between $70-100 per piece.
• Generally, women spend $150-200 in a salon
session.
• Considering all other costs the makeover should be
priced from $400 and above.
• As specifications increase, the product cost would
increase.
• Let average revenue per transformation to be $600
and the cost spent per transformation to be $450.
Hence a profit of $150 could be achieved per
transformation.

#DISRUPT BEAUTY 2030

Key Performance Indicators:
KPIs are really important for return on investment over a specific time period, and to
assess the success of any product/idea.

For the product:

• Number of units sold: This would be the number of smartwatches sold which would
include geographical wise sales.
• Active users: : Monthly active users (MAU) or daily active users (DAU) are users that
have become dependent on our watch and are using the app for skin care routine.
For the salon service:
• Number of bookings made: This would help monitor how many users are actually
using the app to make reservations/bookings for salon style treatment.
• Active users: Monthly active users (MAU) or daily active users (DAU) are the users
that have become dependent on your app and help evaluate the engagement of
users with the app.

Scalability: As geography changes, the skin type and its care routine changes depending
on factors like temperature, elevation, climate, humidity, etc. So its evident that use
of skin care products has a huge scalability worldwide. Considering the current
technical expansion all over the world almost 78% of the world population holds a
smartphone. By 2019, 722 million smart wearables were accounted in contrast to 325
million in 2016. Hence, we can see that the acceptance and adoption of Smart Tech has
been huge and its trends are increasing along with the upcoming technologies.
Considering the smartwatches which earlier only had pedometer now come with BPM,
Spo2 monitoring tech and is evolving at a great pace. Taking the trends into account, it
is evident that integration of skin care tech products will have a huge market and
potential to change the whole perspective of the industry.

The most important aspect of this product is that it is customizable

hence people of all identities, cultures and backgrounds could use
them. No matter who you are and where you belong, everyone
should have access to products that not only enhance their beauty
but also makes them more confident in their own skin type, color,
texture and gender.

#DISRUPT BEAUTY 2030