B E A U T Y AT A G L A N C E

A case study
•Founded in 1909 by Eugene Schueller

•Covers entire range of beauty technology

including Haircare, Fragrance, Skincare,
Make-up & Hair Color

•Employs 90000 people

•36 Major Brands

•Net Income Eur 4.6 Bn

•Market Cap – Eur 200 Bn

L'Oréal: A Leader In The Beauty Market
L'Oréal‘s
Manufacturing Plants
L’Oréal’s Distribution
Footprint
L'Oréal's Digital Journey
 L’Oréal: Creating a
Digital Enterprise
•20/50/100 Vision

•20% of sales through e-commerce

•Partnering with Start-ups
•50% of interactions with customers should
be personalised

•100% of brands should engage with

customers through social media

•Digital Transformation for

various functions •Investing in AI in beauty and
Technology
 •Lower product development time from 18 months to 6 months

•Develop products that interact with the customer

•Foster manufacturing & distribution agility to respond to ever-

increasing demand volatility

•Develop personalised products

Operations •Leverage data science to improve supply chain

4.0 •Product development teams use 3D printing for prototypes

•QR codes on products to interact with customers

•Identifying agile partners internally among the brands and factories

Processes
Beauty Technology in
HAPTA
Still under development, HAPTA
aims to help people with limited
fine motor skills to apply lipstick at
home, reinforcing their autonomy
and self-confidence. The new
device will incorporate technology
originally created by Verily to
stabilise and level food utensils.
HAPTA’s leveling device will be
piloted with L’Oréal-owned
Lancôme in 2023, first with a
lipstick applicator followed by
additional makeup applications in
the future.
L’Oréal Brow Magic
L’Oréal Brow Magic is an electronic
makeup applicator that can shape
eyebrows as well as a professional would.
Developed in partnership with tech
company Prinker — a pioneer in printed,
non-permanent tattoos — the device uses
2,400 tiny nozzles and a printing
technology with up to 1,200 drops per inch
(dpi) printing resolution. L’Oréal’s
Modiface AR technology, L’Oréal Brow
Magic scans the user’s face and makes
recommendations for microblading, micro-
shading, or filler effects.
 2016

L’Oréal created the position of Chief Operations

Digital Officer

• To understand and explore how new technologies can

change how the company manufactures and distributes
products, while maintaining a coherence with the company’s
digital transformation efforts.
L’Oréal: The
Beauty of •They focused on developing new capabilities and outcomes
rather than on implementing specific technologies; this
Supply Chain included lowering product development time, developing
Digitalisation products that interact with the consumer, fostering
manufacturing and distribution agility to respond to ever-
increasing demand volatility, developing personalised
products and leveraging data to improve the supply chain.
Personalisation
Personal skin analysis: The user opens the
Perso mobile app and takes a photo with their
smartphone camera. Utilizing L'Oréal-owned
ModiFace technology, the app uses Al to
analyze the user's overall skin condition-
including deep wrinkles, fine lines, the

Break
appearance of dark spots, and pore visibility.

Environmental assessment: Using

Breezometer geolocation data, Perso assesses
local environmental conditions that can
influence the state of the user's skin,
including weather, temperature, pollen, UV
index, and humidity.

Perso's Smart Skincare

Personalisation
Product preference: The user then enters their personal
skincare concerns into the Perso app, including fine lines,
dark spots, pigmentation, pore size, radiance, and
dullness. The user can also input preferred texture and
hydration-level to further customize their unique formula
of moisturizer, serum, and under-eye cream.

Break
Custom formulation and dispensing: This collective data
informs the creation of a personalized blend of high-
performance skincare, dispensed in a perfectly portioned,
single dose at the top of the device for easy, clean
application. The technology adjusts for morning and
evening application, and the device features a detachable
mirrored top so consumers have the option of taking a
single or larger dose with them on-the-go.

Perso's Smart Skincare

Technology
PartnersWorking with
L'Oréal
As a digital first company, L'Oréal has
put digital at the service of their
consumers and teams to meet today's
challenges, arouse interest in a world of
hyper-connectivity and build
relationships based on trust to meet the
expectations and needs of consumers.,

For L’Oréal, the digital transformation is

a unique opportunity to create new
relationships, based on innovation,
relevance, transparency and trust – not
only with their consumers, but also with
their partners and employees.
Discuss how senior
leaders of L'Oréal plays a
role in setting the digital
agenda.
The challenges of setting
up a global digital Ethnic conflicts, social causes threatens the global
digital governance structure and stability.

governance structure
L’Oréal has chosen a unique strategy: Universalisation. Globalisation that captures, understands and respects
differences. Differences in desires, needs and traditions. To offer tailor-made beauty, and meet the aspirations of
consumers in every part of the world. L’Oréal is driven by this vision of the world.

For L’Oréal, universalisation is about having a truly global presence through a unique organisation. We are strategically
concentrated yet operationally decentralized. Local teams are empowered. They ensure that in every country we are
close and relevant to our consumers.

That means also creating and producing cosmetics at a local level, so that our formulations are perfectly adapted to the
needs of our consumers, wherever they live. To achieve that, we have developed a worldwide network of Research &
Innovation and marketing hubs, one for each of our strategic markets: the United States, Japan, Brazil, China, India
and South Africa. To complement their work in development, L’Oréal also has a global industrial presence, so that
these innovations can be brought to market quickly and efficiently.

Thanks to universalization, the success stories created by our hubs can also be rolled-out to other areas of the world.
 Discuss the importance of
linking the supply chain digital
strategy to the company-wide
digital strategy

A digital supply chain provides up-to-date,

holistic information about performance,
status, and requirements. This information
helps to manage and optimise processes such
as raw material flows, operational logistics,
inventory levels, forecasting, and resource
planning.
Loreal has developed open innovation program to
involve startups with beauty tech

47 startups have been funded since 2017

Numerous startups have developed solutions that

work on sustainable goals of L’oreal

Assists in reducing the expenditure on R&D and

manpower

External partners can develop and implement

innovative technologies quickly

Developing internally can be time consuming and

can be a greater risk if the solution doesn’t work.
L’Oréal should carefully evaluate their goals,
resources, and available options before deciding
whether to work with technology partners or
develop tools internally. Should L'Oréal work with technology
partners or develop tools internally.
Why?

What are the criterias for technology

outsourcing?
A Personal Touch:
Managing L’Oréal’s Supply
ChainTasks in Stores

Paris
Thank You
Arissa V.
Soumik D.