L’Oreal and Facebook team up for virtual make-up tests to drive online sales
Reuters - Aug 13th 2018, 13:11
In an age of selfies and beauty bloggers, cosmetics firms are investing heavily in online tech.
Maybelline parent L’Oreal is pairing up with Facebook to roll out virtual tests for shoppers to see how they might look with a different lipstick or eyeshadow, adding to its push to drive more sales online and through social media networks.
Cosmetics firms including L’Oreal rival Estee Lauder and retailers such as LVMH’s Sephora are investing heavily in technology, in an age of selfies and beauty bloggers that has helped shift the industry onto the web.
France’s L’Oreal, the world’s biggest cosmetics group, bought Canadian augmented reality and artificial intelligence specialist ModiFace in March. It said on Thursday that the Toronto-based company had teamed up with Facebook to develop augmented reality experiences on the platform for L’Oreal brands.
Customers will eventually be able to try on anything from foundation shades to eyebrow shapes and hues said L’Oreal’s chief digital officer Lubomira Rochet. The virtual tests helped the company clinch sales.
"What we’ve seen on our sites is that when there is a virtual test facility, conversion rates increase significantly," she said.
Social media networks had become the biggest growth driver of web sales for L’Oreal in terms of attracting shopping traffic, though purchases were redirected to take place on brands’ own sites or third-party online retailers, Rochet said.
The French company said e-commerce revenues reached 9.5% of all its sales in the first half of 2018, up from close to 5% three years ago.
The virtual testing technology should eventually be rolled out on Facebook’s photo-sharing networking site Instagram, Rochet said. In China, where Facebook is blocked, Rochet said L’Oreal was talking to other partners about similar deals, without naming them.
Luxury goods groups in China do a lot of business through Tencent’s messaging and networking site WeChat.
Facebook said it had begun testing augmented reality in advertising in July.Business Live
Woolworths bedeviled by declining sales
18/01/2019 - 10:35
As Woolworths tries to recover from the impairments of A$712.5 million (R7.02 billion) it suffered last year in its Australian subsidiary David Jones, the retailer continued to experience declining sales in the 26 weeks to end December trading period in South Africa.
Black Friday boosts November’s retail sales
16/01/2019 - 14:12
Consumers came under pressure in 2018, with the first VAT hike in two decades and steep fuel price increases.
Five smart ways to shift excess stock
16/01/2019 - 08:49
Surplus stock is one challenge that every retailer wants to turn into an opportunity.
Carrefour to use AI for supply chain optimisation
15/01/2019 - 15:19
Carrefour has announced plans to use artificial intelligence to optimise its inventory management, making it the first French retailer to do so.
Why Macy’s guidance triggered US retail wipeout
15/01/2019 - 14:18
Macy’s did not have as merry a Christmas as it expected, and now all of retail is under the microscope.