Reuters pic
Marketers are treading new ground in their bid to stay at the top of their game. Check out what L’Oreal are doing at the Festival de Cannes (May 08-19, 2018)!
Chinese pop star Chris Lee (also Li Yuchun) glided down the hallway of Cannes’ Hotel Martinez in a tuxedo-inspired Jean Paul Gaultier gown and blue-gray pixie haircut, with a throng of L’Oreal videographers trotting backward to stay out of the frame.
After striking a few poses on the marbled staircase, she headed for the red carpet. The footage was rushed to L’Oreal’s editing suite, where waiting editors and producers stitched together clips to post everywhere from Instagram to China’s Weibo within hours of the shoot.
This is how the world’s biggest beauty brand promotes itself in the smartphone age.
With foot traffic slipping in retail stores, eyeballs switching from televisions to mobile screens and China’s digitally savvy consumers driving growth, L’Oreal SA pulled out all the stops at the world’s most watched film festival.
L’Oreal Paris, the company’s flagship consumer brand, is using its unrivaled scale to fund ever-bigger events, including a live talk show on the Cannes beach with film stars like Jane Fonda and Isabelle Adjani. Some segments were even produced in Mandarin, hosted by Chinese-American TV star Hung Huang and published on Alibaba Group Holding Ltd’s TMall.
L’Oreal Paris’s global brand president, Pierre-Emmanuel Angeloglou, speaking from a two-story video studio built for the occasion on the Cannes beach believes “Cannes is a spectacular opportunity for us to produce a lot of content, and this year we wanted to take it even further. The more we can combine accessibility and direct contact with consumers with the aspirational nature and beauty of cinema, the better”.
The studio against a backdrop of yachts crossing the Mediterranean harbor and equipped with a vintage convertible for capturing models tossing their hair in the breeze, marked a change of scenery from the celebrity magazines and nightly news shows that L’Oreal used to rely on to get out their marketing message.
Staying in the spotlight with a constant flow of interesting content over Facebook, Instagram and Chinese networks like Weibo and WeChat has become a business imperative for L’Oreal as they navigate the decline of traditional media atop a chilling wave of retail closures.
The Chinese market, already L’Oreal’s second biggest after the US of A, with about $2.6 billion in sales last year, is undergoing what CEO Jean-Paul Agon calls a “particularly violent” shift to e-commerce, and online sales made up more than a third of sales last year.
And I agree whole-heartedly that this is the way to go for the world’s most famous brands if they wish to continue to hold onto and/or even grow sales and market share in a hyper-competitive world.
It is a given that even established brands like L’Oreal can no longer depend on their reputation.
As Delphine Dion, marketing professor at France’s Essec Business School, citing mounting competition from homegrown competitors in China, social-media-driven upstarts like LVMH’s Fenty Beauty by Rihanna and South Korean beauty brands like Mizon, said: “They have to keep making buzz online or else they’ll lose out”.
L’Oreal’s partnerships with Instagram influencers and beauty-blogging YouTube stars have helped drive booming makeup sales, Dion said, so it makes sense for the company to step up their digital efforts with more established representatives like Julianne Moore and China’s Li.
In the flurry of videos L’Oreal produced during the festival, red-carpet struts were interspersed with product demos and interviews with the brand’s ambassadors. And L’Oreal promises viewers an instant reward: In one Instagram story, red-carpet snapshots of Moore were followed by a suggestion to swipe up for a 20 percent discount on glitter cream.
The combination of staging elaborate events, publicizing them via social media and easing the path to points of sale is showing signs of success. When L’Oreal launched a collaboration with designer Olivier Rousteing and fashion brand Balmain last year, video ads linked to Alibaba’s TMall, driving sales of 40,000 lipsticks in the first month.
In other words, L’Oreal are very clever about doing what is called all-media distribution – the strategy of producing their own content and handing it over to a range of outlets. That helps the brand get around a common problem for marketers in China – that media owners block links to content from rival platforms when users share it, making exclusive deals less effective.
I grant that you get a lot more exposure this way.
If China gets special treatment in L’Oreal’s online efforts – as with the Mandarin edition of the Cannes talk show – it’s not only because of the scale of the opportunity, but because lessons learned in the most advanced market for e-commerce can be exported around the world.
One takeaway: Mixing entertainment and retailing works.
Marketing is constantly evolving. The necessity to connect with audiences remains and with consumers embracing smartphones as never before – this poses a challenge to marketers.
In that sense, L’Oreal is a market pioneer.