The potential of e-commerce

L’Oréal is taking advantage of the huge potential of this new distribution channel thanks to a strategy tailored to the specifics and different practices of each market, and to strong partnerships with e-commerce players. Take a closer look at advances made in e-commerce in 2015.
Screenshot of the L’Oréal Paris store on Chinese e-commerce website Tmall.
+37.9% growth in e-commerce sales(1)
In countries where digital lifestyles have really taken hold, L’Oréal has teamed up with the local e-commerce leaders. In China, they are mainly pure players. L’Oréal China, which led the way back in 2010 with the first L’ORÉAL PARIS boutique on the Tmall website, has also been working with the Alibaba website since 2013. Today, online sales account for more than 20% of the of the Consumer Products and Active Cosmetics Divisions’ sales(1). In the United States, L’Oréal Luxe makes roughly 15% of its sales via e-commerce(1) using both distributor partners and brand sites.

Developing e-commerce in Russia

As their privileged partner, L’Oréal shares its best digital practices with its distributors, to develop the e-commerce channel in countries where it is still embryonic. In Russia, the group identified the Ozon website as a strategic player in local e-commerce. Thanks to L’Oréal’s digital beauty expertise, the two partners worked together on a plan to launch the cosmetics category, which, today, is strongly, driven by the group’s brands. This initial success is proving an inspiration for L’Oréal’s other distributor partners in Russia.
Screenshot of the L’Oréal Paris store on Russian e-commerce website Ozon.
We have set up a host of e-commerce partnerships that are already posting good results, and we are now the reference for online beauty in Russia
Arnaud Darde
Key Accounts Director, L’Oréal Russia

When CRM(2) teams up with e-commerce

L’Oréal also sells online directly through its brand sites. To make sure the online experience is also exclusive, LANCÔME and KIEHL’S now have their own e-boutiques in the United States. This strategic choice has allowed them to develop combined loyalty programmes for in-store and online purchases, while also helping them get to know their consumers better, so they can effectively suggest targeted offers. The LANCÔME Elite points system also encourages members to engage in dialogue with the brand by rewarding them for social network interactions.
Screenshot of the page dedicated to Elite Rewards on Lancôme’s USA e-commerce website.
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(1) Sales achieved on the brands’ own websites and estimated sales achieved by the brands corresponding to sales through retailers’ websites (non-audited data).
(2) Customer Relationship Management.