Post #13: Recommendations to Management

Where there's a beginning, there's an end. . . ?

We’ve reached the end of our journey analyzing and talking about L’Oréal. My respect for L’Oréal has grown maybe beyond than what I imagined. I have always respected and studied L’Oréal as it is a company that isn’t just sales -orientated or focused on status, it is a company that truly cares about people and the environment. As expected of the company whose goal is “beauty for all”. It goes beyond what the trend is or what is the next big thing. It is a pioneer in the beauty industry for researching on what consumers want and bring those products to life. For years, they have done intensive research to find only the best natural ingredients, the best ways for people to start taking care of their skin and hair, the best items that can boost self-confidence and embrace true beauty.

In the end, it is hard to come up with recommendations for L’Oréal because, well, what can they improve on? They are the pioneer in the world of beauty products and technology. They have addressed various of issues people go through when choosing cosmetics or skincare, with the introduction of Makeup Genius, My UV Patch, Custom D.O.S.E, and now with Perso, the AI system that creates custom lipstick, foundation, and skincare right in front of you! What more could you ask for? But, if I really need to give some recommendation to the marketing team, it would be the following two: improving their direct marketing channel and possibly the introduction of subscription boxes (based on current beauty trends).

First recommendation: direct marketing channel. As I mentioned in one of my previous post (Post #11: Place / Distribution), L’Oréal’s reliance on indirect marketing channels take up the majority of their sales, to put it in one way. If L’Oréal were to place more importance or effort onto their direct channel, their L’Oréal Paris website, then it would allow for more consumers interaction and the ability to collect real-time data based on clicks and the featured items. That way, L’Oréal knows which products are best sellers, and what consumers are looking for based on price and features. It’ll reduce that gap between L’Oréal and the consumer, just like its huge social media presence, and create a more personal bond, as well as allow L’Oréal to have more direct control in the flow of distribution and sales.

Second recommendation: Subscription boxes. Nowadays, subscription boxes are the current trends, from clothes to food to cosmetics, from all over the world or a specific region. Perhaps, L’Oréal could jump onto this trend in order to raise more brand awareness for itself or for its numerous brands. These subscription boxes have the option of a one-time purchase or reoccurring monthly flat fee, plus shipping or without, depending on the company’s preference. With this subscription service, consumers would be able to receive sample sized products, maybe from a specific category (like only makeup) or from a wide variety (makeup, skincare, fragrance, haircare), and grow more familiar with them, possibly leading to finding their new makeup item or skincare item. Boosting brand awareness, brand loyalty, and brand trust, this allows L’Oréal to showcase its products and allows the consumers to sample products without the full commitment of purchasing it, unless they really love it and want to purchase the actual product.

Right now, more than ever, the beauty industry is facing one of its biggest obstacles as we see a decline in demand for makeup / cosmetic products. It is times like these that force L’Oréal to rethink its structure and approach in order to adapt to the declining demand and sudden stagnation in some markets. How will L’Oréal overcome these obstacles? Will it be able to introduce new products and have the same success prior to the current pandemic? I believe that what drives L’Oréal and is essentially its competitive advantage at the moment is the constant dedication to research breakthroughs in beauty, technology, and sustainability. As it continues to pour more and more into their R&D, L’Oréal will eventually find a way to break through, and revitalize the world of beauty. It’ll take time until we hear the next big thing from L’Oréal so all we can do is sit back and mentally prepare ourselves to be blown away once again by the pioneer in beauty, L’Oréal.