Beauty just a click away
Brands are reinventing the experiences and relationships they offer customers through e-commerce, which has become a part of consumers’ daily lives.
“L’Oréal continued to grow steadily in the e-commerce channel, with 33.6% x growth compared with 2016, accounting for more than 8.0% of our sale. We have led the way by forging partnerships with our historic clients, but also with new players in e-commerce, to co-create online beauty. Our performances in China, where online sales represent 26.4% of sales, and in the luxury segment, with brands like Lancôme and Kiehl’s, are spearheading growth in this new distribution channel.”
e-commerce growth in 2017 x
percentage of Group sales from e-commerce
percentage of L’Oréal China sales from e-commerce
e-commerce is L’Oréal’s 3rd country, in equivalent sales
E-commerce, which has experienced continuous growth for the last several years and now accounts for more than 8.0% of Group sales, still holds much promise. Online sales take place in three channels: our partner distributors’ sites, our brand sites, and pure player x platforms. The last of these three channels represents a rapidly growing segment, particularly around key events such as Black Friday or Singles’ Day in China, when on 11 November 2017, Alibaba set a new sales record.
E-commerce plays a critical role in the Group’s transformation
Consumer enthusiasm for e-commerce is a valuable opportunity for the Group, which is a digital pioneer at every stage of the value chain. Online customers expect a sales experience akin to or better than what they find in stores. Our brands are revamping their marketing and communications to showcase their best products and convince consumers via digital platforms.
The logistics chain is also rethinking its process to manufacture products and deliver them directly to customers’ doors worldwide.
China and the United States champions of
China and the United States lead the e-commerce channel. Brands like Kiehl’s and Urban Decay are particularly well suited to this distribution channel. Their direct sales websites are very successful. In China, e-commerce accounts for 26.4% of sales, via pioneering partnerships with pure players like Alibaba, Jingdong and VIP.
E-commerce: a promising future
E-commerce growth is expected to continue in the years to come, with a focus on several major shifts that are radically changing the channel. The convergence of on- and offline sales is revolutionising the world of pure players and has vindicated the Group’s pioneering decision to establish a digital strategy early in the game. Marketing, communications and sales practices are taking inspiration from one another to create omnichannel strategies, which are becoming the norm. Social commerce x continues to grow on social networks. New technologies are also revolutionising e-commerce, with voice assistants giving rise to new shopping trends.
L’Oréal identifies these technologies and adapts them to its industry: connected devices, omnichannel strategy and data management all open up new opportunities for our brands.