2024-09-23 06:30:02 :
MUMBAI: As the beauty industry shifts toward personalization, global cosmetics leader L’Oréal, with annual revenue of over $40 billion, recognizes the critical role of marketing. Asmita Dubey, L’Oréal’s global chief digital and marketing officer, said the French multinational, the world’s fourth-largest advertiser, spends about 32% of its net sales on advertising and promotions. during an interview MintDubey discusses the changing beauty marketing landscape, sharing insights into L’Oréal’s broad reach strategy, the role of artificial intelligence (AI) in product development and consumer engagement, and how the brand remains culturally relevant in more than 150 countries insights. Sustainability and digital transformation are at the heart of L’Oréal’s mission to make beauty more accessible, inclusive and personal. Edited excerpts:
L’Oréal works with a vast network of influencers. How has this strategy evolved to attract younger audiences like Gen Z?
We work with over 60,000 influencers around the world, covering all ages. Especially for Gen Z, authenticity is crucial. They value reviews and peer recommendations. When working with influencers, we give them our brand code but encourage them to express beauty in their own unique way. Last year we achieved a 28-29% reach across the beauty industry, which illustrates the success of this approach.
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Beauty marketing messaging has changed significantly. How does this evolution impact your strategy?
Messaging has really evolved. The focus now is on staying aligned with cultural cues and the intersection of consumer expectations and technology. The brand has transitioned from the era of 30-second TV ads to today’s digital-first approach, where consumers are more empowered than ever to interact directly with brands. However, while technology and platforms change, the core of our brand remains the same. For example, Maybelline will always embody New York’s confidence and inclusivity, and L’Oréal Paris will continue to champion female empowerment.
You operate in more than 150 countries, how do you adapt a global brand to local markets?
This is a very good question. Every market has its own cultural differences. For example, Maybelline’s brand values of confidence and inclusivity resonate globally, but the way we express these values in India (for example, during Diwali) is different from the way we express them in Dubai during Ramadan. Our brand ambassadors, such as Suhana Khan in India and Peggy Gou globally, help localize our message while maintaining universal appeal. This adaptability, combined with a deep understanding of local culture, makes our global brand resonate everywhere.
The same techniques that appealed to Gen Z are being used to effectively reach baby boomers through AI-driven media and performance marketing.
Gen Z is an important focus, but how to balance marketing across age groups, especially to older consumers?
We are committed to bringing beauty to all ages. By 2030, we expect to have 600 million consumers, including 200 million baby boomers. We cater to everyone, from Gen Z to Baby Boomers, with 37 global brands offering tailored products and events. The same techniques that appealed to Gen Z are being used to effectively reach baby boomers through AI-driven media and performance marketing.
Can you elaborate a little more on your sustainability goals and challenges?
Sustainability is at the core of our strategy. Our “L’Oréal Future” program focuses on environmental and social responsibility. Our goal is to achieve 100% renewable energy in our operations, and in India we have achieved our 2025 target ahead of schedule. Brands such as Garnier are leading the way in this area. In addition, we use tools such as Impact+ to reduce CO2 emissions from digital advertising.
How can artificial intelligence change your marketing and product development?
Artificial Intelligence is a game changer for us. On the marketing side, we use artificial intelligence to optimize consumer engagement and content creation. For example, our new AI tool “Beauty Genius” provides personalized beauty advice and product recommendations to enhance the consumer experience. In product development, AI helps us formulate products suitable for different skin and hair types by analyzing global data. The fusion of artificial intelligence and beauty allows us to provide personalized services such as virtual makeup try-ons and skin diagnostic tools.
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With the rise of DTC (direct-to-consumer) brands and the shift towards Ayurveda in beauty products, how is L’Oréal responding to these trends?
We monitor these trends closely. While we respect nature and Ayurvedic methods, our focus remains on research and innovation through green science. For example, before launching a product like CeraVe in India, we carefully study local skin types and conditions. Our strength lies in balancing advanced science with local relevance, ensuring our products are effective and suitable for different markets.
As a marketing leader, what advice do you have for balancing short-term performance with long-term brand building?
Striking a balance between short-term return on investment (ROI) and long-term brand building is critical. Both are important, but the key is that each has a clear purpose. New-age marketers must combine data-driven decision-making with creativity. At L’Oréal, we use insights from 15,000 marketing campaigns to refine our strategy, an approach that allows us to remain innovative while maintaining brand equity.
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