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FROM MANAGING THOUSANDS TO

SERVING BILLIONSTurning  disruptions  into  new  opportunities.

AND A REVOLUTION HAPPENED !

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Internet

Broadband

Social

Mobiles

Cloud…

IT CREATED THE “BIG BANG FOR BRANDS”.

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From  :“What  creates  value  for  the  shareholders?”  !To  :  “What  creates  value  for  the  customer?”  

A NEW STORY BEGINS :THE BIRTH OF A NEW BUSINESS MODEL…

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VALUE FOR THE SHAREHOLDERS.

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B to CPush Mode

Efficiency of the

Media Plan

Product Innovation

The producer defines the products that consumers should need.!A strong media plan (mostly TV) repeats the products USP.!Consumers run into store to acquire the product. !Plants make huge economies of scale.

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C to CNetwork ModeBrand Acceptance

in the Social Network

Collaborative Intelligence

The Customer is networked with other customers.!Customers trust their peers more than any brand. !Together, they collaborate to define the product they need.

VALUE FOR THE CUSTOMERS.

CUSTOMER IS GOD !

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Connect  –  Collaborate  –  Collectively  Deliver

CUSTOMERS ARE CREATORS, PRODUCERS, AND CONSUMERS.

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Industrial Age.

MASS RETAIL

MASS Media MASS PRODUCTION

Thousands of Products

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Digital Age.

NEIGHBORHOOD RETAIL

MEDIA CURATION CUSTOMIZATION

Billions of Customers

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Is  L’Oréal  Still Immune  ?  

FROM MANAGING THOUSANDS TO SERVING BILLIONS.

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TAKING INSPIRATION OF A BRAND WHERE THE CUSTOMER IS GOD.

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THE MODEL: CONSISTENT RETAIL 2.0 SINCE 1851.

Serving Local Communities Supporting Local Players

Customizing the Relation Advertising through WOM & PR

THERE IS BEAUTY IN THE NEIGHBORHOOD WHICH CARES ABOUT YOU

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A DIGITAL BRAND SINCE 1851 :

A CUSTOMER IS A FRIEND 16

“To serve our customers is to make them feel delighted, they leave better than they came, they will come back for more and tell their friends”

Samantha, KCR at Kiehl’s, NYC

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Most successful L’Oréal Brand

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Is  L’Oréal  Still Immune  ?  

FROM HYPERMARKET RETAIL TO NEIGHBORHOOD COMMERCE.

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CURATE YOUR DATA.

MOBILE IS THE NUMBER ONE“STORE SHOPPING BEHAVIOR INFLUENCER”

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47%of smartphone users use their device while shopping1

Of those2…

57% Take pictures of what I want to buy

55% Compare prices

50% Find coupons & sales

43% Access product info

35% Scan QR codes

35% Use apps to help shopWSL//STRATEGIC RETAIL HOW AMERICA SHOPS® BUZZ TO BUY 2.0 | NOVEMBER 2011 Base: Women 1: Have you ever used your mobile phone in store for shopping information? 2: (Base: Used Mobile in stores for shopping activity)

Home page Regional page Local page

LOCATING MY STORE...

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EVEN MAYBELLINE WON’T LET YOU MISS ANY OFFER…

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My Monoprix is 200m away... ...I receive a SMS... ...I stop by the store for the beauty happy hour.

KIEHL’S AUGMENTED PROXIMITY:

SNAP & SHOP

KIEHL’S OPENS BEFORE IT’S EVEN OPEN.

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KIEHL’S STAYS OPEN WHEN IT’S CLOSED.

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IN STORE: CELL PHONES AND KIOSKS NOW LEAD ENGAGEMENT

• Online ordering

• Payment

• Identification

• Loyalty card

• Location based information

• Targeted promotions

• Premium services : beauty concierge, click to call…

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• Diagnosis and personal advices.

• Virtual Product Testing

• In Store Pick-up

• At home deliveries

• Training classes & events

• Booking massages&consultations

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A CONSISTENT CROSS-CHANNEL EXPERIENCE.

DIGITAL IS THE KEY INFLUENCER, OFFLINE

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7%Total Sales

are Online Sales

39%Offline Sales are

Influenced by Online Browsing

46%Total Sales are

Directly Influenced by Internet

Source: Forrester US Forecasts, 2010-2015. 2011 Data

THIS IS EVEN MORE SPECTACULAR IN BEAUTY

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6%Total Sales

are Online Sales

72%Offline Sales are

Influenced by Online Browsing

78%Total Sales are

Directly Influenced by Internet

!!Expert  Advice  +  Diagnosis  +  Transac5on      

E-­‐SKIN  !

MY DERMA SKINCARE ADVISOR

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!ON- AND OFF MUST COMPLEMENT EACH OTHER.

30E-COMMERCE NEEDS & FUELS COMMERCE.

E-SKIN : MORE THAN E-COMMERCE, A MARKET PLACE.

• List every skin solutions.

• Universal search about skin.

• Find product availability & price: • offline (in stores) • online (brands sites, partner sites)

• Order, Get Delivered or Collect in Pharmacy.

ONLINE RETAIL FUELS THE BRICK.

!• Traditional retail has immense assets,

• A real human interface.

> The best place to generate «emotion & awareness».

> The service to persuade the shopper of the wiseness of his purchase

• The network to create the convenience.

As a consequence, online pure players are opening offline stores

GEORGES-EDOUARD DIASSVP DIGITAL BUSINESS

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REINVENT YOUR RETAIL FORMAT.

LANCOME & YSL TURN TAXIS INTO FASHION SHOPS

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L’OREAL PARIS SHAZAMS YOUR BEAUTY

L’OREAL PARIS SHAZAMS YOUR BEAUTY

L'Oréal

•Decode any look you can capture

•Products are chosen based on your skin & hair type

•Best possible tips to achieve desired look

•Where to find products : availability best price, discounts

L’OREAL PARIS SHAZAMS YOUR BEAUTY

SOCIAL & MOBILE BUILDS A DEMAND-BASED MODEL: NEIGHBORHOOD COMMERCE.

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Private & Confidential, Growth & Emerging Markets, LLC

+ Loyalty Program

+ Traditional Trade

+ Cashless Transactions

Mission: Next Billion Consumers

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Thursday, November 10, 11

Shopper Marketing Support

SHOPPER MARKETING GUIDE

EMPOWERED ENTREPENEURSHIP

Store Kit

Features

Special Offers

Mobile Airtime

Digital Content

Social Services

LOYAL LADIES

JOIN MY CLUB NOW!

Text: ____________

To: 82052

Our$Concept$

•  Bridge$the$gap$between$Social$Media$and$Sales$by$using$Mobile$!$Social$Commerce$$

•  But$REAL$Social$commerce$is$not$necessarily$e>commerce$or$m>commerce…$$$$$$$…It’s$above$all$NEIGHBORHOOD$COMMERCE$

NEIGHBORHOOD*DYNAMICS*

Social$Media$

Local$Stores$Local$Consumers$

1. No Stock : next day store delivery.

2. No Cash Advance : M-Pesa transfers via SMS.

3. No Paper Money: Manufacturer get paid by the telco in exchange of its earned M-Pesa.

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Is  L’Oréal  Still Immune  ?  

THE DIGITAL DISRUPTION :PRIVILEGING CUSTOMER SERVICE TO PRODUCT MARKETING.

⇨ Customer

⇨Customer manager

⇨Customer development

⇨Customer research

⇨Customer marketing tree

⇨Customer P&L

⇨Customization

⇨Customer advertising

THE NEED FOR AN ORGANIZATIONAL RESET.

⇩ Product ⇩ Product manager ⇩ Product

development ⇩ Product research ⇩ Product

marketing tree ⇩ Product P&L ⇩ Production ⇩ Product advertising

THE BAXTER CASE.

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Men Grooming was identified as a « Blue Ocean » for L’Oréal, a source of new customers acquisition.

The « small business » was acquired in Dec 2012 by L’Oréal USA…

…and directly placed under L’Oréal USA’s CMO responsibility.

Before being a source of business, it’s a source of learning :

use of digital to grow virally your customer base.

development of e-commerce

creating revenues beyond products through services.

THE BAXTER CASE.

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