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Mirror
Reflections on the use of digital in
beauty & skincare category
- by Ranajoy Roy
Mirror
Confidential - Not to be shared without the author’s consent
Beauty is eternity gazing at itself in a mirror.
But you are eternity and you are the mirror.
- Khalil Gibran
contents
preface 4.
a diverse facial care landscape 5.
mobile or else 7.
e-commerce & m-commerce 8.
the rise of social commerce 10.
social media : look beyond facebook 11.
social command centers 16.
mobile, devices, apps & more: case studies 17.
augmented reality: case study 23.
wearables 24.
brand community 26.
programmatic 27.
3 key takeaways 28.
contact 29.
preface to Mirror
Beauty brands are ahead of other segments
when it comes to marketing and targeting
women. They have adopted, scaled and
evolved by leveraging digital, social and
mobile together.
Beauty and skincare are actively marketed
segments on the internet, with countless
searches, “how-to” videos and a growing
number of peer reviews informing and
influencing consumer purchase decisions.
Brands are inventing newer ways to engage
the consumer in micro pockets of her time and
gain share of their limited attention span.
Communication is taking place in short bursts
over mobile, web and social.
The intent of this paper is to bring forth the
diverse digital strategies that skincare and
beauty brands have adopted or are adopting
effectively for their businesses.
Considering the omnifarious and constantly
evolving beauty & skin-care landscape, the
focus of this document is on facial care for
women, to keep the subject matter contained.
This deck is intended to give a fuller
perspective to the experienced category
brand marketers and also for those who are
new to the category. “Looking good” is
paramount to the consumers as well as the
marketers. I hope this paper offers inspiration
to connect better with your consumers and
own those precious moments in their lives.
I believe we can drive businesses ahead if we
keep your eyes on the road ahead but also
have a clear view of what’s around us. To all
reading this: Keep dreaming. Keep trying.
Keep evolving.
Mirror
Confidential - Not to be shared without the author’s consent
Hygiene & Hydration Skincare & Treatment Age defyingFairness Nourishment & Beauty
Creams Gels Lotions Liquid PowderPeel off SerumsFormats
a diverse facial care landscape
Moisturisers
Cleansers
Toners
Face wash & wipes
Cleansing devices
Scrubs & Exfoliates
Creams
Lotions
Face masks
Face packs
Mud masks
Soaps & liquids
Make-up & Cosmetics
Acne treatments, blemishes,
dark spot & marks removers
Lip care
Skin-type solution
Blackhead 

removal patches
Eye care Under eye
Tiredness & Puffiness
Eye Patches / Packs
Dry Skin
Normal
Oily
Whitening Bleach
Fairness
Sunscreen & UV protection
Lasers
BB, CC creams 

& erasers
Skin Protection
Fairness
Eye Make-up
Creams
Face powder
Foundation
Make up removers
Liquids Wipes & pads
Damaged
Skin Repair
Anti oxidant
Anti Ageing
Firming
Anti Wrinkle
Wrinkle-prevention/
reductionAir cushion
Cell Renewal
Regime
Oil
Creams
Natural packs
Steaming
Mists, Sprays & Spritzers
Sheet Masks
Confidential - Not to be shared without the author’s consent
mutable trends - think small, think micro
The possibilities with digital are evolving faster
than the speed of thought. Blink and you have
missed it. Think and someone else has already
done it.
Digital has pervaded every facet of marketing
right from manufacturing to sales and beyond.
Emerging technologies, evolving online
platforms, new devices and strategies to reach
consumers are changing the way brands
communicate with their consumers.
Product innovations paired with digital
technologies can definitely add more value to the
consumers but at the same time it is getting
harder to grab the attention and loyalty of the
fickle consumer.
TV is no longer the communal fireplace around
which the entire household used to gather
around every evening. Media is fragmented and
reach is getting more and more unpredictable
with TVOD and multi-device viewing. There is a
considerable shift to more condensed,
personalised and more visual forms of
expressions with the penetration of devices.
All these challenges pose opportunities for the
brands to evolve their marketing strategy.
Consider the evolving consumer and her
decision journey to leverage digital at the right
time with the right message. Bring digital, social
& mobile together to personalise content, add
value and engage with her more relevantly in
micro pockets of time without getting in her way.
The estimated size of the global skincare market in
2016, is about USD 121 billion.
Source: http://www.statista.com/statistics/254612/global-skin-care-market-size/
Confidential - Not to be shared without the author’s consent
Source: http://www.cosmeticsdesign.com/Market-Trends/7-global-beauty-brands-that-are-listening-to-consumers 

| http://www.womensmarketing.com/blog/2015/02/how-women-shop-beauty-market-trends-2015/
mutable trends - go mobile or else…
Confidential - Not to be shared without the author’s consent
For the young, elusive
millennial their phones are
their ‘best friends forever’ which goes with her
everywhere like Mary’s little lamb. It is her mirror
to the world. Fuels her self confidence, peer
group acceptance and ego. One of the greatest
opportunity and challenges for the advertiser
today is to reach the audience through her most
trusted companion — the mobile phone.
According to IAB, the US skincare buyer is more
inclined to engage in online and mobile activities
than the average adult. They are also more prone
to regularly view digital videos. In addition, they
are much more influenced in their beauty
purchases by internet ads than the average
consumer.
40% of Millennials are taking an active approach
to staying young by using anti-aging products,
while older consumers are looking to reinvent
themselves. Having an “ageless” image and
attitude is important to both generations.


Men are upping their beauty regiments and
investing in more products now than ever before.
It is likely that future beauty product marketing
will be more heavily inclusive of men than it is
now.
Manufacturers and retailers alike will need to
learn to do even more with emerging media to
drive traffic, build brand equity, and increase
sales. Marketers need to work harder on
connecting the dots of digital marketing:
Website, Search, Social, mobile, digital, gaming,
e-commerce and augmented reality to the retail
world.
“The more that people take photos of themselves,
the more they care about the way they look. There
are some basic trends right now that are really in
favor of the development of beauty products
worldwide.
“
- Jean Paul Agnon, Chairman &
CEO, L’Oréal
e-commerce & m-commerce
Brands have taken an array of measures to
develop online commerce — from distribution
partnerships with online marketplaces, to site
launches and redesigns. Brand websites
have become a part of the journey, but not the
destination. Majority of online shoppers still
prefer to purchase through retailers.
Skincare is the most frequently purchased
FMCG online and together with Colour
Cosmetics, represents nearly 40% of the
category’s digital sales.
Online accounted for 8% of beauty sales in
2014, a 3% increase from 2013. Since 2010,
online Beauty sales have grown at a 53.9%
(CAGR), more than 7 times the overall market.
Shopping on mobile now accounts for over
30% of all global e-commerce sales.
L’Oréal makes Euro 1 billion in online sales
globally and 20% of its sales in China is from
online. 75% of online sales is from retailers.
In 2014, online accounted for 15.5% of Beauty
sales in China, up 23% yoy. 41% Chinese
online cross-border shoppers have
purchased cosmetics online from a U.S.
retailer
M-commerce is the natural progression from
e-commerce allowing for a more personalised
and direct business model. Emerging markets
such as India and China are home to vast
numbers of mobile phone users, offering
massive m-commerce potential, but at
present developed nations offer the strongest
markets for Internet retailing and 3G
penetration. 
Source: Digital-IQ-Index-Beauty-2015-EXCERPT | http://www.cosmeticsdesign.com/Business-Financial/E-commerce-accounts-for-only-10-of-beauty-sales | AT Kearney Beauty and the E-commerce Beast
http://blog.euromonitor.com/2011/09/special-report-global-m-commerce-set-for-strong-growth-potential.html
Confidential - Not to be shared without the author’s consent
e-commerce - sephora
While Sephora’s physical stores increasingly
become digital oriented, it’s online websites also
help drive sales.
Sephora resorts to“quick views,” which displays
important product details in a Lightbox. This
makes it easier for visitors to browse and buy in
fewer clicks. It has also streamlined and simplified
the checkout process on its site.
Created a backend that allowed users to check
the availability of products in stores nearby for
easy purchase and pick-up. Sephora’s mobile
experience expanded the capabilities of the
‘Beauty Insider’ program online, allowing users to
check their loyalty points balance, available
rewards, and previous purchases.
The acronym ATAWAD - “Any Time, Any Where on
Any Device” represents Sephora’s intention of
granting its customers’ every wish: limitless
shopping. Sephora is now developing its e-
commerce strategy in various parts of the world,
with the aim of offering ever more groundbreaking
and personalized tools. Among them are mobile
applications such as Color Profile or My Sephora.
An industry leading innovative website and mobile
experience combines resulted in a big increase in
omnichannel sales and 150% in mobile sales.
Source: https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw
Confidential - Not to be shared without the author’s consent
rise of social commerce
`Source: Digital-IQ-Index-Beauty-2015-EXCERPT | https://www.techinasia.com/wechat-social-commerce-chinaccelerator | http://walkthechat.com/wp-content/uploads/2015/05/wechat-casestudy-2.jpg
Social media is moving past just social referrals
and likes or sharing and pining. It is getting more
and more integrated with a full-funnel marketing
strategy where users can gain information about
brands, complete purchases, write reviews and
share their experiences with their friends/followers.
For a long time marketers were grappling with the
‘ROI of social media’. Likes, shares, retweets,
views, comments and favourites were just not
enough for boardroom discussions. They needed
to know the real impact of social media on the
business.
With social commerce, brands can now create
significant and measurable ROI from their
customers’ social engagement. Social commerce
is helping brands drive new sales directly from
social media sites by offering buyers option to
purchase the products that they see or like online.
Every social media company has seen the
potential and has jumped onto the bandwagon.
Pinterest rolled out Buyable Pins while Instagram
introduced shoppable paid posts with a “Shop
Now” button. Facebook has been working on it’s
advertising platform and forming partnerships to
usher in a new era of one-click buying. Sephora
has tested out YouTube’s new shoppable ads.
Tencent, is opening its platform for developers to
build e-commerce stores. WeChat’s wallet allows
users to seamlessly make in-app purchases; its
social networking allows users to influence
purchasing decisions.
Confidential - Not to be shared without the author’s consent
social media: look beyond facebook
`
Reaching the millennial consumer
has become a key initiative for
brands. Instagram is gaining
prominence as the preferred social
platform, with brands selling beauty
products & concepts via celebrities,
influencers and advocates who are
constantly creating buzz, setting
new trends, giving tips, interacting
with fans and creating stories.
Social media savvy brands in
beauty, luxury and fashion are using
Influencers and ambassadors to
connect with their fans and promote
their products. However, there are
brands who still prefer to stick with
models holding up various sku’s of
their products, use print visuals on
Instagram or feature product shots
of their brands.
Marketers have eased off from
boasting about the size of their fan
following as Facebook has limited
the organic reach to a negligible
percentile. After failed attempts at
search and hashtag, Facebook is
now investing heavily in native video
to grab advertising share from
YouTube.
Twitter has slowed down in
engagement and active user base
has dropped from 12% to 8% year
over year. Millennials are now
spending more time with mobile
based social networking platforms
like Instagram, QQ, snapchat,
weChat, etc.
Meanwhile in China, Youku receives
more than 900 mn. video views each
day from 150 mn. daily active users.
Maybelline is a standout on the
platform, with more than 46 million
views. Episodes of the brand’s
popular online reality show “Come
on Cinderella” garners 3.2 million
views on an average.
Source: Digital-IQ-Index-Beauty-2015-EXCERPT
Shown above is an example of Estée Lauder being featured on
Kendal Jenners Instagram
SK-II Instagram
Share of total post interactions: Facebook,
Instagram & Twitter (October 2014-October 2015)
Confidential - Not to be shared without the author’s consent
Content: Lifestyle content and direct
conversations with consumers.
Embodies the personality of Bobbi.
Addresses not just makeup and
beauty concerns but a range of
relevant interests.Bobbi is the
essence of social media posts &
blog as well.
Values: Sophisticated, open and its
social voice is welcoming &
engaging. Follows its fans on Twitter.
Everything Bobbi: The blog
connects with its audience by
applying the Bobbi Brown voice &
personality. Positions Bobbi as an
expert on women’s lifestyle issues
like Home, Life, Happenings,
#PrettyPowerful, How-To topics , etc.
social media: A tale of two beauty brands
Source: How top beauty brands stand out - NewsCred
1.53 15.7
0.45 10.9
0.07 0.51
0.18 2.17
1.2 9.3
50.7K -
Content: Brand is exclusive, stylish
and chic. The content is very brand
centricand beauty products are
always presented on a model.
Chanel creates an aspirational air of
elite aloofness.
Values: Chanel is high fashion and
exclusive. Does not follow anyone on
twitter. Is sophisticated and its social
voice is welcoming & engaging.
Chanel News: The blog is very
product, events and promotions
driven. More use of visual than text
as opposed to Bobbi who has long
text in the blogs expressing her view.
*Millions
Confidential - Not to be shared without the author’s consent
social media - facebook & twitter 

for engagement & community building
MAC uses Facebook to share content that furthers its
branding, entertainment, engagement and awareness
efforts rather than focus on promotions and sales efforts.
MAC and Lancôme both manage the conversations,
engage and regularly respond to their customers online.
Although MAC has refrained from adding shopping
capabilities to its Facebook Page, it has leveraged
Facebook to enable MAC fans to "shop together"
through an on-site instant-messaging service, which can
be activated by logging onto maccosmetics.com with
their Facebook logins.
Lancôme global page versus country page MAC global page
Source: http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw
Confidential - Not to be shared without the author’s consent
Sephora uses a mix of UGC and branded content—both of
which have a very approachable, human feel. The brand
often uses a Layout-style Instagram post to deliver its point.
Here it uses four different consumers wearing berry-coloured
lipstick, showing how people with varying looks can tap into
the trend.
beautiful examples
Source: http://blog.curalate.com/2015/08/20/how-3-beauty-brands-overcome-ecommerce-obstacles/
L’Occitane uses the brands
Facebook page to share
product updates, promotions,
participates actively and
responds promptly to queries
regarding the brand or product.
Philosophy is a brand that
celebrates inner beauty with a
purpose on its social sites. The
messages are definitely not hard
sell almost bordering on
spirituality and centres around
wellness.
Confidential - Not to be shared without the author’s consent
instagram & bloggers 

- #bareselfie by lancôme & 

benefits ‘inner beauty’
Lancôme: Lancôme launched a
#BareSelfie campaign daring women to
post pictures of themselves without
makeup. In addition to soliciting fan
engagement on Instagram, Lancôme
tapped the female blogging community
SheSpeaks and solicited bloggers to
review Dream Tone samples. 12 bloggers
documented their experience before and
after using the product and posted to
#bareselfie. The collection was made into
an interactive advertorial for Marie Claire’s
website. 

Benefit and Love is Louder (UK) created
the Inner Beauty Challenge to help women
focus on the positive, have fun & embrace
their ‘inner beauty’. High-profile artists and
top beauty vloggers created a 7-Day
Challenge full of laughter, love, and living
out loud.
Each day they brand challenged fans with
a simple activity that will helped them feel
more empowered and boosted their
confidence / inner beauty.   
Source: http://www.l2inc.com/lancômes-bareselfie-project/2014/blog | www.loreal.com/group/who-we-are/our-ambition
Confidential - Not to be shared without the author’s consent
social command centers -
turning big data into beautiful data
Social media monitoring is turning out to be the best
focus group. Unilever, Estée Lauder, L’Oréal and
every major brand is today using their social centres
to reach out to the target audience.
Brands are trying to understand their consumers
better, get real time insights and engage actively.
Consumer journeys and interjections are being
planned inside these command centres. Also it is
turning out to be the best tool to identify potential
crisis and mitigate risks online that affect the
brand’s reputation and equity.
The tools are evolving and the future will be AI /
deep learning, automation and contextual based
understanding. This makes it possible for online
platforms to know the target audience more
intimately, predict the narratives that may be the
next big story, create new experiences and tailor
these experiences over the customer journey.
Here’s an example from L’Oréal’s Live
Social Response Lab during a Emmy
event to launch a new product and
engage with the fans. Fashion Illustrator
Katie Rodgers, created inspirational
mood boards based on the trending
red carpet looks.
Source: http://www.netbase.com/blog/press-release/netbase-announces-comprehensive-brand-passion-report-on-beauty-and-skincare/
http://www.prnewswire.com/news-releases/loreal-Paris-brings-the-red-carpet-to-women-in-real-time-272619061.html
According to NetBase’s 2 year study of global
social media:
The 5 aspects of skincare that matter most, are great
fragrance, natural looking, great moisturiser, value,
and anti-aging.
On average, ‘Natural looking’ emerges as the attribute
with the highest amount of positive brand
conversation at 91.1 Net Sentiment points.
Among top 7 skincare brands, Neutrogena is best
known for natural looking skincare, followed most
closely by L’Oréal and Avon.
The findings show that Consumer thinking is shifting
more towards wellness and flat-age living,
Younger women increasingly care for their skin with
an eye toward preserving good looks rather than
correcting damage later.
Conversations about beauty align with tech and
fitness brands Apple and Nike.
mobile crm, search & more:
body shop digital real estate
`Source: http://www.thedrum.com/news/2015/04/07/body-shop-preps-audience-centric-search-strategy-win-new-customers https://www.l2inc.com/the-body-shop-tops-our-UK-beauty-report/2014/blog
When it comes to digital, the beauty
brand with a heart does a very good job
of ensuring the websites are
standardised, mobile optimised and
follow the brand guidelines across most
of its websites. It has a skin diagnostic
tool and urges visitors to sign up for its
newsletters or reminds them of a cash
on delivery option as the case maybe.
In Singapore, the beauty brand has tied
up with a mobile based application
“Perkd” for its trademark loyalty
programme “Love your body”. Perkd is a
single platform shared with other brands
like Timberland. It sends regular
updates and promotional message via
this app.
The Body Shop also sends out regular
sms’s to its customer base with new
offers and in store promotions.
The Body Shop has invested in YouTube
with tutorials, beauty blogger
partnerships, and paid advertising that
directs traffic to the brand’s site.
The brand is now in the process of
refocussing their search strategy and
build campaigns to focus on people who
are not using their brand rather than
compete with their own natural search
results.
Mobile based CRM
programme and sms
marketing examples
Confidential - Not to be shared without the author’s consent
l’oréal - #beauty for all
L’Oréal has created a manifesto - Beauty for all
and is moving away from “Because you are worth
it” tagline. The manifesto video, website and
content seems like an attempt to re-imagine the
company’s identity as a more accessible brand for
consumer. 



A clear attempt to own the “Beauty” territory and
spread its reach by coining terms like
“Universalisation”. The brand hopes to reach out
to the potential next billion who they want to add
as their consumers. And establish the diversity of
beauty and the needs of the people using their
products.
L’Oréal says ‘universalisation does not necessarily
mean to impose uniformity, but to be inspired by
diversity to innovate’. It could have simply stated
that it wants to be the choice of beauty brand for
everyone.
After the immense success of Dove’s ‘Real beauty’
campaign, many beauty brands are trying to lure
users by promoting “real beauty / inner beauty”.
By using the tried and tested formula by dove,
brands are trying to make themselves be seen as
more accessible.
Source: http://www.loreal.com/group/who-we-are/our-ambition
Confidential - Not to be shared without the author’s consent
“For over forty years, since the time we declared our iconic tagline, ‘Because You’re Worth It,’ L’Oréal Paris has supported the
individual beauty and intrinsic worth of every woman. We are fuelling the powerful words of women everywhere, so their most-worthy
conversations reach, affect and inspire as many other women as possible. - Karen Fondu, President of L’Oréal Paris.
“
bridging the social and retail divide
with sampling - aveda
Aveda ran a sampling campaign that gave out
20,000 sample packs containing shampoo,
conditioner and smoother on Facebook, which it
considers as the brands central hub. Recipients
were given information and a video to watch
before filling out a sample request on a FB tab.
Fans were invited to come into nearby stores and
salons to pick up their samples. Sampling
campaigns on Facebook are effective not only for
increasing awareness about a product launch,
but also for increasing footfalls into the store and
getting valuable feedback.
Source: http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw
Confidential - Not to be shared without the author’s consent
mobile - scan & shop, makeover
apps and beacons
`
Brands and tech are now increasingly resorting to mobile to
unleash the smartphone features for marketing. They are
exploring augmented reality, NFC, face detection, LBE and
beacons on this personal devices. Here are some
pioneering mobile strategies deployed by beauty brands.
Source: http://www.mobilemarketer.com/cms/news/strategy/21922.html http://www.mobilemarketer.com/cms/news/software-technology/20215.html
Scan-and-shop QR
technology: Hair care brand
Sexy Hair targeted the
Cosmopolitan magazine
readers by enabling them to
snap a photo of its print ad and
purchase hairspray directly
from their mobile device. Scan
& Shop kind of easy mechanics
can help narrow the gap
between consideration and
purchase.
ShadeScout also enables
consumers to use their
smartphone to capture an
image of for e.g. a celebrity
wearing a favourable colour
and match it with a shade
from their favourite brand.
They have a social sharing
option that allows for selfies to
be posted online or the user
can purchase from the app.
Make up genius is a mobile app available on iOS from
L’Oréal. Users can try on makeup looks and products virtually
in real time. They can create their own or try ready-to-wear
looks curated by makeup artists in one click.
Confidential - Not to be shared without the author’s consent
Spruce offers dermatologist appointments virtually
through the phone. Whether it's an acne breakout or a
skin rash, one can send photos or details regarding his
or her condition immediately through the app. Within 24
hours, they will receive a personalised skincare
treatment plan and prescriptions.
Visada analyses the picture to develop a personalised
comprehensive beauty profile. The app breaks down an
assessment of skin and eye care, offering up
suggestions on how to improve your beauty regimen.
Sephora partnered with Pantone to develop a program
called ColorIQ, which attempts to match shoppers’
skin tone with the appropriate shade of foundation. A
device filters out external light to photograph a
shopper’s exact skin tone and match it to makeup
that’s in stock.
devices - mobile apps & sensors
From virtually trying on makeup to ordering a hairstylist at your doorstep, there is a beauty app for everything
Confidential - Not to be shared without the author’s consent
need for smarter devices in beauty - 

applicators & sonic brushes
Skin-care devices are playing an increasingly
important role in uplifting the science involved
in beauty regime. For e.g., JeNu Ultrasonic
Infuser Systems attempts to fit into the
consumers daily beauty routine. It claims to be
the best and most efficient way to apply the
treatment products already used by
consumers. “Propels 6x more skincare into
skin with 25% more infusing power.”



Sonic cleanser skincare brushes are being sold
as an effective tool for both female as well as
male beauty or cleansing regime. 



Clinique sonic boasts of a two toned
supersonic brush to use on oilier areas, the T-
zone, while the softer bristles work on the
cheeks and more delicate skin. 

Braun brush comes with a epilator attachment
and a lit mirror. Clarisonic Aria comes armed
with variable speed settings, has a built-in
timer for the perfect customised cleanse, a
stand as well as a magnetic charger.
There is room for products like these to
become smarter, more connected and
integrated with mobile apps in the near
future to remind users on the next usage,
refill alerts, connect with the weather apps
and suggest an increase in frequency of
treatment, and send geo-specific push
notifications, etc. Think IOT.
Source: https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw
Confidential - Not to be shared without the author’s consent
augmented reality mirror: sephora
`
Augmented reality is an effective
marketing tool when combined with mobile,
desktop, tablet or even deployed in-store.
Brands are tapping into its ability to engage
audiences creatively and give them
experiences that can lead to trials and
repeat purchases.
Brands and retailers such as L’Oréal. and
Sephora have connected with their audience
more closely through augmented reality
pushes in which users were able to test out
and interact with products.
Sephora's new mirror simulates makeup on
a person’s face in both real time and 3D.
Beauty lovers can try on makeup in this real-
time, 3D mirror with just a tap. They can try
out multiple colours and textures by tapping
the colour on the screen, and see how it
looks from all angles.
Source: http://www.psfk.com/2014/06/sephora-augmented-reality-mirror-try-on-makeup.html
Confidential - Not to be shared without the author’s consent
wearables - my uv patch by l’oréal.
L’Oréal, a non-tech company is now ready to use
cutting edge wearable tech to promote a healthier
lifestyle. By launching the UV patch, L’Oréal is
raising awareness regarding the harmful effects of
overexposure to sun that can cause premature
ageing, wrinkles, and other skin problems
including cancer. Using the right products from
L’Oréal & La Roche-Posay sell and minimise the
time spent, unprotected, in the sun can reduce
these problems.
L’Oréal considers the patches an important step in
bringing about a behavioural change regarding
overexposure to harmful rays.
My UV Patch monitors daily skin exposure to UV
rays and reports it almost like a fitness app does.
The iPhone app opens with a camera view, and
after taking a picture of the patch, the day’s
exposure is displayed on a graph on the phone.
You can check the metrics at any time and as
many times as you like. When the Android app
arrives, the patch will use NFC to connect and
gather the data.
Source: https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw
Confidential - Not to be shared without the author’s consent
influencers & content creators
Social media has ushered a massive shift in
marketing. Brands have transited quickly from
passive monitoring to active engagement and
creating brand communities.
Communities of influencers, advocates,
bloggers, vloggers and content creators are
being used to penetrate the millennial tribes.
These days, everyone is a content creator, and
makeup fans are particularly tuned into the
dynamic ones who are highly active online.
Procter & Gamble (P&G) in Asia-Pacific has
launched two new digital influencer campaigns to
promote its SK-II skincare range. The
#ChangeDestiny campaign enlisted 9 online
influencers. Each created and distributed video
content around the ‘Destiny Changing’ challenges
they have overcome in their lives. The influencers'
videos were uploaded to their own YouTube or
Youku channels and distributed via a number of
social networks.
For the second campaign, P&G sourced four
popular vloggers from Australia, Singapore and
Japan to create and distribute videos that
highlighted the benefits of SKII’s Facial Treatment
Essence and Mid-day and Mid-night Miracle
Essence sprays through "A day in my life" stories.
StyleHaul is the largest original video content
network on YouTube for fashion and beauty. A
community of more than 6,000 original creators
serving a global audience of style influencers who
create, consume and share actively.
Confidential - Not to be shared without the author’s consent
Source: http://www.thedailybeast.com/articles/2014/08/24/inside-stylehaul-the-largest-fashion-network-on-youtube-you-ve-never-heard-of.html
http://rightster.com/investor-news/rightster-group-plc-announces-partnership-with-procter-gamble-in-asia-pacific.html
brand community - advocacy
`
Brand communities are the next step in the
consumer retention funnel and the penultimate goal
for every customer relationship journey. Nurturing a
community allows brands to get in touch with their
audience in meaningful and genuine ways. It
deepens the engagement with the brand and the
consumers can be rewarded for their loyal
participation. It is a win-win situation for consumers
as well as advertisers. Consumers engage directly
with the brands, are connected to their peers, derive
value, share their stories and earn rewards /
recognition. Brands receive first hand information
and content from their consumers.
Brand communities foster deep engagement and
are excellent avenues to indulge in social
exploration tactics, trials and product testing or
comparisons. Asking fans to share their stories and
photos about a product, getting members to review,
rate, and share products within the community are
common.
When a visitor arrives on Sephora’s Beauty Talk
branded community, they find there a like-minded
tribe of makeup experts, and newbies, looking to
discover the best makeup, hair, fragrance, or
skincare products that are a match for them.
Members spend 2x while “super-fan” community
members spend 10x as much as non-community
members.
Source: https://www.clickz.com/clickz/column/2391666/2015-will-be-the-year-of-the-brand-community-here-s-why
Confidential - Not to be shared without the author’s consent
programmatic - shu uemura
`
Shue Uemura collaborated with artist Karl Lagerfeld
(and his cat Choupette) to release the Shupette line.
Their target audience were mostly women between
25 and 30 who had previously purchased luxury
beauty products online. They wanted to lead the
young North American consumers along the path to
purchase, from awareness to conversion. The brand
leveraged DoubleClick Bid Manager and Google
Analytics Premium to get a unified solution for
managing website audiences and programmatic
buying.
Shu Uemura started the campaign with an
awareness and consideration phase designed to
increase website traffic & grow their email
subscriber list. They tapped into a list of users who
had already visited their site. They reached out to
both existing and potential customers — those who
had visited the web property and those who looked
like them, using look-alike modelling.
Lastly, the team re-marketed the Shupette line to its
past website visitors. Using Google Analytics, Shu
Uemura was able to determine which products past
visitors were interested in and present them either
with particular products from the Shupette line or an
offer to win the entire collection. 
The Results
Drove almost 2X the anticipated revenue
Exceeded CPA targets and achieved a 2200%
return on ad spend (ROAS).
Source: www.doubleclickbygoogle.com/articles/loreal-canada-finds-beauty-programmatic-buying/
Confidential - Not to be shared without the author’s consent
3 key takeaways
(1) Connect everything, Share with everyone:
Brands need to understand that the consumer is
living in a hyper connected world. She expects
the brand to play a more meaningful role in her
life, connect with her and be more personal.



Make it simple for the consumer to share her
encounters with the brand. This will ensure she
shares the experience with her peers. 



Understand her need to “belong” is being
replaced by her need to stay “connected”. The
mobile is her 5th sense and enables her to
sense the world around her. It provides
independence and a venue for self expression.



Chances are that the shopper at your aisle is
armed with a smartphone. Create a complete
digital, social and mobile ecosystem that
connects with retail. Make the most of it.
(2) Prioritise and leverage all your digital
assets in an endless loop of experience:
Beauty and skincare brands may have an
amazing story to narrate. But the content and
experiences are not uniform. They may offer a
great in-store experience but a badly designed
e-store or shoddy websites that are not
optimised or social media content that is not
speaking the consumers language. Many times,
leveraging all the touch-points may not be
possible due to resource constraints. 



Brands need to carefully plan their priorities and
must-win digital battles. Focus on assets that will
deliver and where the biggest potential lie, then
go after it. Lastly, they do not need to go it alone.
If E-commerce is not your cup of tea, then tie-up
with online partner/s. Ensuring you are
connecting the dots to give a seamless
experience across all your touch-points.

(3) Take risks and evolve: Ensure that the team
has the flexibility to take risks and are
encouraged to do so. By running staid
strategies, repeating same successes and
tactics, the brand may be making short term
gains but compromising on opportunities. 



Digital does not always means high tech. Keep
inventing ways to penetrate less technology
savvy markets. Explore and discover hidden
gems that can work more cost effectively - think
ways to tap non-smart phone markets for Africa
& Asia. 



Try and leverage new technologies through
incubators and pilots. Keep a part of your
budget for trying the new and unexplored. Tie
up with partners who can do it. Keep peering
into the rear view mirror to learn from your
failures, share your successes and keep
dreaming bigger.
Source: http://www.loreal.com/group/who-we-are/our-ambition | http://www.campaignlive.com/article/why-brands-short-millennial-women/1320918#KbCbdzw8Y2Ud6JfP.99
Confidential - Not to be shared without the author’s consent
Ranajoy Roy,
Managing Partner
ranajoyroy@newtondigi.com
Contact
source & references
1. http://www.statista.com/statistics/254612/global-skin-care-market-size/
2. http://www.statista.com/statistics/287643/global-male-grooming-market-size/
3. http://www.cosmeticsdesign.com/Market-Trends/7-global-beauty-brands-that-are-listening-to-
consumers
4. http://www.womensmarketing.com/blog/2015/02/how-women-shop-beauty-market-trends-2015/
5. Digital-IQ-Index-Beauty-2015-EXCERPT
6. http://www.cosmeticsdesign.com/Business-Financial/E-commerce-accounts-for-only-10-of-beauty-sales
7. AT Kearney Beauty and the E-commerce Beast
8. https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw
9. https://www.techinasia.com/wechat-social-commerce-chinaccelerator
10. http://walkthechat.com/wp-content/uploads/2015/05/wechat-casestudy-2.jpg
11. How top beauty brands stand out: http://newscred.com/theacademy/learn/beauty-brands
12. http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw
13. http://blog.curalate.com/2015/08/20/how-3-beauty-brands-overcome-ecommerce-obstacles/
14. http://www.l2inc.com/lancômes-bareselfie-project/2014/blog
15. www.loreal.com/group/who-we-are/our-ambition
16. http://www.netbase.com/blog/press-release/netbase-announces-comprehensive-brand-passion-report-
on-beauty-and-skincare/
17. http://www.prnewswire.com/news-releases/loreal-Paris-brings-the-red-carpet-to-women-in-real-
time-272619061.html
18. http://www.thedrum.com/news/2015/04/07/body-shop-preps-audience-centric-search-strategy-win-
new-customers
19. https://www.l2inc.com/the-body-shop-tops-our-UK-beauty-report/2014/blog
20. www.loreal.com/group/who-we-are/our-ambition
21. http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw
22. http://www.mobilemarketer.com/cms/news/strategy/21922.html
23. http://www.mobilemarketer.com/cms/news/software-technology/20215.html
24. https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw
25. http://www.psfk.com/2014/06/sephora-augmented-reality-mirror-try-on-makeup.html
26. https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw
27. http://www.thedailybeast.com/articles/2014/08/24/inside-stylehaul-the-largest-fashion-network-on-
youtube-you-ve-never-heard-of.html
28. http://rightster.com/investor-news/rightster-group-plc-announces-partnership-with-procter-gamble-in-
asia-pacific.html
29. https://www.clickz.com/clickz/column/2391666/2015-will-be-the-year-of-the-brand-community-here-s-
why
30. www.doubleclickbygoogle.com/articles/loreal-canada-finds-beauty-programmatic-buying/
31. http://www.loreal.com/group/who-we-are/our-ambition
32. http://www.campaignlive.com/article/why-brands-short-millennial-women/
1320918#KbCbdzw8Y2Ud6JfP.99
33. http://blog.euromonitor.com/2011/09/special-report-global-m-commerce-set-for-strong-growth-
potential.html

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Mirror Mirror - How Beauty / Skincare segment is Taming the Digital Beast

  • 1. Mirror Reflections on the use of digital in beauty & skincare category - by Ranajoy Roy Mirror Confidential - Not to be shared without the author’s consent
  • 2. Beauty is eternity gazing at itself in a mirror. But you are eternity and you are the mirror. - Khalil Gibran
  • 3. contents preface 4. a diverse facial care landscape 5. mobile or else 7. e-commerce & m-commerce 8. the rise of social commerce 10. social media : look beyond facebook 11. social command centers 16. mobile, devices, apps & more: case studies 17. augmented reality: case study 23. wearables 24. brand community 26. programmatic 27. 3 key takeaways 28. contact 29.
  • 4. preface to Mirror Beauty brands are ahead of other segments when it comes to marketing and targeting women. They have adopted, scaled and evolved by leveraging digital, social and mobile together. Beauty and skincare are actively marketed segments on the internet, with countless searches, “how-to” videos and a growing number of peer reviews informing and influencing consumer purchase decisions. Brands are inventing newer ways to engage the consumer in micro pockets of her time and gain share of their limited attention span. Communication is taking place in short bursts over mobile, web and social. The intent of this paper is to bring forth the diverse digital strategies that skincare and beauty brands have adopted or are adopting effectively for their businesses. Considering the omnifarious and constantly evolving beauty & skin-care landscape, the focus of this document is on facial care for women, to keep the subject matter contained. This deck is intended to give a fuller perspective to the experienced category brand marketers and also for those who are new to the category. “Looking good” is paramount to the consumers as well as the marketers. I hope this paper offers inspiration to connect better with your consumers and own those precious moments in their lives. I believe we can drive businesses ahead if we keep your eyes on the road ahead but also have a clear view of what’s around us. To all reading this: Keep dreaming. Keep trying. Keep evolving. Mirror Confidential - Not to be shared without the author’s consent
  • 5. Hygiene & Hydration Skincare & Treatment Age defyingFairness Nourishment & Beauty Creams Gels Lotions Liquid PowderPeel off SerumsFormats a diverse facial care landscape Moisturisers Cleansers Toners Face wash & wipes Cleansing devices Scrubs & Exfoliates Creams Lotions Face masks Face packs Mud masks Soaps & liquids Make-up & Cosmetics Acne treatments, blemishes, dark spot & marks removers Lip care Skin-type solution Blackhead 
 removal patches Eye care Under eye Tiredness & Puffiness Eye Patches / Packs Dry Skin Normal Oily Whitening Bleach Fairness Sunscreen & UV protection Lasers BB, CC creams 
 & erasers Skin Protection Fairness Eye Make-up Creams Face powder Foundation Make up removers Liquids Wipes & pads Damaged Skin Repair Anti oxidant Anti Ageing Firming Anti Wrinkle Wrinkle-prevention/ reductionAir cushion Cell Renewal Regime Oil Creams Natural packs Steaming Mists, Sprays & Spritzers Sheet Masks Confidential - Not to be shared without the author’s consent
  • 6. mutable trends - think small, think micro The possibilities with digital are evolving faster than the speed of thought. Blink and you have missed it. Think and someone else has already done it. Digital has pervaded every facet of marketing right from manufacturing to sales and beyond. Emerging technologies, evolving online platforms, new devices and strategies to reach consumers are changing the way brands communicate with their consumers. Product innovations paired with digital technologies can definitely add more value to the consumers but at the same time it is getting harder to grab the attention and loyalty of the fickle consumer. TV is no longer the communal fireplace around which the entire household used to gather around every evening. Media is fragmented and reach is getting more and more unpredictable with TVOD and multi-device viewing. There is a considerable shift to more condensed, personalised and more visual forms of expressions with the penetration of devices. All these challenges pose opportunities for the brands to evolve their marketing strategy. Consider the evolving consumer and her decision journey to leverage digital at the right time with the right message. Bring digital, social & mobile together to personalise content, add value and engage with her more relevantly in micro pockets of time without getting in her way. The estimated size of the global skincare market in 2016, is about USD 121 billion. Source: http://www.statista.com/statistics/254612/global-skin-care-market-size/ Confidential - Not to be shared without the author’s consent
  • 7. Source: http://www.cosmeticsdesign.com/Market-Trends/7-global-beauty-brands-that-are-listening-to-consumers 
 | http://www.womensmarketing.com/blog/2015/02/how-women-shop-beauty-market-trends-2015/ mutable trends - go mobile or else… Confidential - Not to be shared without the author’s consent For the young, elusive millennial their phones are their ‘best friends forever’ which goes with her everywhere like Mary’s little lamb. It is her mirror to the world. Fuels her self confidence, peer group acceptance and ego. One of the greatest opportunity and challenges for the advertiser today is to reach the audience through her most trusted companion — the mobile phone. According to IAB, the US skincare buyer is more inclined to engage in online and mobile activities than the average adult. They are also more prone to regularly view digital videos. In addition, they are much more influenced in their beauty purchases by internet ads than the average consumer. 40% of Millennials are taking an active approach to staying young by using anti-aging products, while older consumers are looking to reinvent themselves. Having an “ageless” image and attitude is important to both generations. 
 Men are upping their beauty regiments and investing in more products now than ever before. It is likely that future beauty product marketing will be more heavily inclusive of men than it is now. Manufacturers and retailers alike will need to learn to do even more with emerging media to drive traffic, build brand equity, and increase sales. Marketers need to work harder on connecting the dots of digital marketing: Website, Search, Social, mobile, digital, gaming, e-commerce and augmented reality to the retail world. “The more that people take photos of themselves, the more they care about the way they look. There are some basic trends right now that are really in favor of the development of beauty products worldwide. “ - Jean Paul Agnon, Chairman & CEO, L’Oréal
  • 8. e-commerce & m-commerce Brands have taken an array of measures to develop online commerce — from distribution partnerships with online marketplaces, to site launches and redesigns. Brand websites have become a part of the journey, but not the destination. Majority of online shoppers still prefer to purchase through retailers. Skincare is the most frequently purchased FMCG online and together with Colour Cosmetics, represents nearly 40% of the category’s digital sales. Online accounted for 8% of beauty sales in 2014, a 3% increase from 2013. Since 2010, online Beauty sales have grown at a 53.9% (CAGR), more than 7 times the overall market. Shopping on mobile now accounts for over 30% of all global e-commerce sales. L’Oréal makes Euro 1 billion in online sales globally and 20% of its sales in China is from online. 75% of online sales is from retailers. In 2014, online accounted for 15.5% of Beauty sales in China, up 23% yoy. 41% Chinese online cross-border shoppers have purchased cosmetics online from a U.S. retailer M-commerce is the natural progression from e-commerce allowing for a more personalised and direct business model. Emerging markets such as India and China are home to vast numbers of mobile phone users, offering massive m-commerce potential, but at present developed nations offer the strongest markets for Internet retailing and 3G penetration.  Source: Digital-IQ-Index-Beauty-2015-EXCERPT | http://www.cosmeticsdesign.com/Business-Financial/E-commerce-accounts-for-only-10-of-beauty-sales | AT Kearney Beauty and the E-commerce Beast http://blog.euromonitor.com/2011/09/special-report-global-m-commerce-set-for-strong-growth-potential.html Confidential - Not to be shared without the author’s consent
  • 9. e-commerce - sephora While Sephora’s physical stores increasingly become digital oriented, it’s online websites also help drive sales. Sephora resorts to“quick views,” which displays important product details in a Lightbox. This makes it easier for visitors to browse and buy in fewer clicks. It has also streamlined and simplified the checkout process on its site. Created a backend that allowed users to check the availability of products in stores nearby for easy purchase and pick-up. Sephora’s mobile experience expanded the capabilities of the ‘Beauty Insider’ program online, allowing users to check their loyalty points balance, available rewards, and previous purchases. The acronym ATAWAD - “Any Time, Any Where on Any Device” represents Sephora’s intention of granting its customers’ every wish: limitless shopping. Sephora is now developing its e- commerce strategy in various parts of the world, with the aim of offering ever more groundbreaking and personalized tools. Among them are mobile applications such as Color Profile or My Sephora. An industry leading innovative website and mobile experience combines resulted in a big increase in omnichannel sales and 150% in mobile sales. Source: https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw Confidential - Not to be shared without the author’s consent
  • 10. rise of social commerce `Source: Digital-IQ-Index-Beauty-2015-EXCERPT | https://www.techinasia.com/wechat-social-commerce-chinaccelerator | http://walkthechat.com/wp-content/uploads/2015/05/wechat-casestudy-2.jpg Social media is moving past just social referrals and likes or sharing and pining. It is getting more and more integrated with a full-funnel marketing strategy where users can gain information about brands, complete purchases, write reviews and share their experiences with their friends/followers. For a long time marketers were grappling with the ‘ROI of social media’. Likes, shares, retweets, views, comments and favourites were just not enough for boardroom discussions. They needed to know the real impact of social media on the business. With social commerce, brands can now create significant and measurable ROI from their customers’ social engagement. Social commerce is helping brands drive new sales directly from social media sites by offering buyers option to purchase the products that they see or like online. Every social media company has seen the potential and has jumped onto the bandwagon. Pinterest rolled out Buyable Pins while Instagram introduced shoppable paid posts with a “Shop Now” button. Facebook has been working on it’s advertising platform and forming partnerships to usher in a new era of one-click buying. Sephora has tested out YouTube’s new shoppable ads. Tencent, is opening its platform for developers to build e-commerce stores. WeChat’s wallet allows users to seamlessly make in-app purchases; its social networking allows users to influence purchasing decisions. Confidential - Not to be shared without the author’s consent
  • 11. social media: look beyond facebook ` Reaching the millennial consumer has become a key initiative for brands. Instagram is gaining prominence as the preferred social platform, with brands selling beauty products & concepts via celebrities, influencers and advocates who are constantly creating buzz, setting new trends, giving tips, interacting with fans and creating stories. Social media savvy brands in beauty, luxury and fashion are using Influencers and ambassadors to connect with their fans and promote their products. However, there are brands who still prefer to stick with models holding up various sku’s of their products, use print visuals on Instagram or feature product shots of their brands. Marketers have eased off from boasting about the size of their fan following as Facebook has limited the organic reach to a negligible percentile. After failed attempts at search and hashtag, Facebook is now investing heavily in native video to grab advertising share from YouTube. Twitter has slowed down in engagement and active user base has dropped from 12% to 8% year over year. Millennials are now spending more time with mobile based social networking platforms like Instagram, QQ, snapchat, weChat, etc. Meanwhile in China, Youku receives more than 900 mn. video views each day from 150 mn. daily active users. Maybelline is a standout on the platform, with more than 46 million views. Episodes of the brand’s popular online reality show “Come on Cinderella” garners 3.2 million views on an average. Source: Digital-IQ-Index-Beauty-2015-EXCERPT Shown above is an example of Estée Lauder being featured on Kendal Jenners Instagram SK-II Instagram Share of total post interactions: Facebook, Instagram & Twitter (October 2014-October 2015) Confidential - Not to be shared without the author’s consent
  • 12. Content: Lifestyle content and direct conversations with consumers. Embodies the personality of Bobbi. Addresses not just makeup and beauty concerns but a range of relevant interests.Bobbi is the essence of social media posts & blog as well. Values: Sophisticated, open and its social voice is welcoming & engaging. Follows its fans on Twitter. Everything Bobbi: The blog connects with its audience by applying the Bobbi Brown voice & personality. Positions Bobbi as an expert on women’s lifestyle issues like Home, Life, Happenings, #PrettyPowerful, How-To topics , etc. social media: A tale of two beauty brands Source: How top beauty brands stand out - NewsCred 1.53 15.7 0.45 10.9 0.07 0.51 0.18 2.17 1.2 9.3 50.7K - Content: Brand is exclusive, stylish and chic. The content is very brand centricand beauty products are always presented on a model. Chanel creates an aspirational air of elite aloofness. Values: Chanel is high fashion and exclusive. Does not follow anyone on twitter. Is sophisticated and its social voice is welcoming & engaging. Chanel News: The blog is very product, events and promotions driven. More use of visual than text as opposed to Bobbi who has long text in the blogs expressing her view. *Millions Confidential - Not to be shared without the author’s consent
  • 13. social media - facebook & twitter 
 for engagement & community building MAC uses Facebook to share content that furthers its branding, entertainment, engagement and awareness efforts rather than focus on promotions and sales efforts. MAC and Lancôme both manage the conversations, engage and regularly respond to their customers online. Although MAC has refrained from adding shopping capabilities to its Facebook Page, it has leveraged Facebook to enable MAC fans to "shop together" through an on-site instant-messaging service, which can be activated by logging onto maccosmetics.com with their Facebook logins. Lancôme global page versus country page MAC global page Source: http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw Confidential - Not to be shared without the author’s consent
  • 14. Sephora uses a mix of UGC and branded content—both of which have a very approachable, human feel. The brand often uses a Layout-style Instagram post to deliver its point. Here it uses four different consumers wearing berry-coloured lipstick, showing how people with varying looks can tap into the trend. beautiful examples Source: http://blog.curalate.com/2015/08/20/how-3-beauty-brands-overcome-ecommerce-obstacles/ L’Occitane uses the brands Facebook page to share product updates, promotions, participates actively and responds promptly to queries regarding the brand or product. Philosophy is a brand that celebrates inner beauty with a purpose on its social sites. The messages are definitely not hard sell almost bordering on spirituality and centres around wellness. Confidential - Not to be shared without the author’s consent
  • 15. instagram & bloggers 
 - #bareselfie by lancôme & 
 benefits ‘inner beauty’ Lancôme: Lancôme launched a #BareSelfie campaign daring women to post pictures of themselves without makeup. In addition to soliciting fan engagement on Instagram, Lancôme tapped the female blogging community SheSpeaks and solicited bloggers to review Dream Tone samples. 12 bloggers documented their experience before and after using the product and posted to #bareselfie. The collection was made into an interactive advertorial for Marie Claire’s website. 
 Benefit and Love is Louder (UK) created the Inner Beauty Challenge to help women focus on the positive, have fun & embrace their ‘inner beauty’. High-profile artists and top beauty vloggers created a 7-Day Challenge full of laughter, love, and living out loud. Each day they brand challenged fans with a simple activity that will helped them feel more empowered and boosted their confidence / inner beauty.    Source: http://www.l2inc.com/lancômes-bareselfie-project/2014/blog | www.loreal.com/group/who-we-are/our-ambition Confidential - Not to be shared without the author’s consent
  • 16. social command centers - turning big data into beautiful data Social media monitoring is turning out to be the best focus group. Unilever, Estée Lauder, L’Oréal and every major brand is today using their social centres to reach out to the target audience. Brands are trying to understand their consumers better, get real time insights and engage actively. Consumer journeys and interjections are being planned inside these command centres. Also it is turning out to be the best tool to identify potential crisis and mitigate risks online that affect the brand’s reputation and equity. The tools are evolving and the future will be AI / deep learning, automation and contextual based understanding. This makes it possible for online platforms to know the target audience more intimately, predict the narratives that may be the next big story, create new experiences and tailor these experiences over the customer journey. Here’s an example from L’Oréal’s Live Social Response Lab during a Emmy event to launch a new product and engage with the fans. Fashion Illustrator Katie Rodgers, created inspirational mood boards based on the trending red carpet looks. Source: http://www.netbase.com/blog/press-release/netbase-announces-comprehensive-brand-passion-report-on-beauty-and-skincare/ http://www.prnewswire.com/news-releases/loreal-Paris-brings-the-red-carpet-to-women-in-real-time-272619061.html According to NetBase’s 2 year study of global social media: The 5 aspects of skincare that matter most, are great fragrance, natural looking, great moisturiser, value, and anti-aging. On average, ‘Natural looking’ emerges as the attribute with the highest amount of positive brand conversation at 91.1 Net Sentiment points. Among top 7 skincare brands, Neutrogena is best known for natural looking skincare, followed most closely by L’Oréal and Avon. The findings show that Consumer thinking is shifting more towards wellness and flat-age living, Younger women increasingly care for their skin with an eye toward preserving good looks rather than correcting damage later. Conversations about beauty align with tech and fitness brands Apple and Nike.
  • 17. mobile crm, search & more: body shop digital real estate `Source: http://www.thedrum.com/news/2015/04/07/body-shop-preps-audience-centric-search-strategy-win-new-customers https://www.l2inc.com/the-body-shop-tops-our-UK-beauty-report/2014/blog When it comes to digital, the beauty brand with a heart does a very good job of ensuring the websites are standardised, mobile optimised and follow the brand guidelines across most of its websites. It has a skin diagnostic tool and urges visitors to sign up for its newsletters or reminds them of a cash on delivery option as the case maybe. In Singapore, the beauty brand has tied up with a mobile based application “Perkd” for its trademark loyalty programme “Love your body”. Perkd is a single platform shared with other brands like Timberland. It sends regular updates and promotional message via this app. The Body Shop also sends out regular sms’s to its customer base with new offers and in store promotions. The Body Shop has invested in YouTube with tutorials, beauty blogger partnerships, and paid advertising that directs traffic to the brand’s site. The brand is now in the process of refocussing their search strategy and build campaigns to focus on people who are not using their brand rather than compete with their own natural search results. Mobile based CRM programme and sms marketing examples Confidential - Not to be shared without the author’s consent
  • 18. l’oréal - #beauty for all L’Oréal has created a manifesto - Beauty for all and is moving away from “Because you are worth it” tagline. The manifesto video, website and content seems like an attempt to re-imagine the company’s identity as a more accessible brand for consumer. 
 
 A clear attempt to own the “Beauty” territory and spread its reach by coining terms like “Universalisation”. The brand hopes to reach out to the potential next billion who they want to add as their consumers. And establish the diversity of beauty and the needs of the people using their products. L’Oréal says ‘universalisation does not necessarily mean to impose uniformity, but to be inspired by diversity to innovate’. It could have simply stated that it wants to be the choice of beauty brand for everyone. After the immense success of Dove’s ‘Real beauty’ campaign, many beauty brands are trying to lure users by promoting “real beauty / inner beauty”. By using the tried and tested formula by dove, brands are trying to make themselves be seen as more accessible. Source: http://www.loreal.com/group/who-we-are/our-ambition Confidential - Not to be shared without the author’s consent “For over forty years, since the time we declared our iconic tagline, ‘Because You’re Worth It,’ L’Oréal Paris has supported the individual beauty and intrinsic worth of every woman. We are fuelling the powerful words of women everywhere, so their most-worthy conversations reach, affect and inspire as many other women as possible. - Karen Fondu, President of L’Oréal Paris. “
  • 19. bridging the social and retail divide with sampling - aveda Aveda ran a sampling campaign that gave out 20,000 sample packs containing shampoo, conditioner and smoother on Facebook, which it considers as the brands central hub. Recipients were given information and a video to watch before filling out a sample request on a FB tab. Fans were invited to come into nearby stores and salons to pick up their samples. Sampling campaigns on Facebook are effective not only for increasing awareness about a product launch, but also for increasing footfalls into the store and getting valuable feedback. Source: http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw Confidential - Not to be shared without the author’s consent
  • 20. mobile - scan & shop, makeover apps and beacons ` Brands and tech are now increasingly resorting to mobile to unleash the smartphone features for marketing. They are exploring augmented reality, NFC, face detection, LBE and beacons on this personal devices. Here are some pioneering mobile strategies deployed by beauty brands. Source: http://www.mobilemarketer.com/cms/news/strategy/21922.html http://www.mobilemarketer.com/cms/news/software-technology/20215.html Scan-and-shop QR technology: Hair care brand Sexy Hair targeted the Cosmopolitan magazine readers by enabling them to snap a photo of its print ad and purchase hairspray directly from their mobile device. Scan & Shop kind of easy mechanics can help narrow the gap between consideration and purchase. ShadeScout also enables consumers to use their smartphone to capture an image of for e.g. a celebrity wearing a favourable colour and match it with a shade from their favourite brand. They have a social sharing option that allows for selfies to be posted online or the user can purchase from the app. Make up genius is a mobile app available on iOS from L’Oréal. Users can try on makeup looks and products virtually in real time. They can create their own or try ready-to-wear looks curated by makeup artists in one click. Confidential - Not to be shared without the author’s consent
  • 21. Spruce offers dermatologist appointments virtually through the phone. Whether it's an acne breakout or a skin rash, one can send photos or details regarding his or her condition immediately through the app. Within 24 hours, they will receive a personalised skincare treatment plan and prescriptions. Visada analyses the picture to develop a personalised comprehensive beauty profile. The app breaks down an assessment of skin and eye care, offering up suggestions on how to improve your beauty regimen. Sephora partnered with Pantone to develop a program called ColorIQ, which attempts to match shoppers’ skin tone with the appropriate shade of foundation. A device filters out external light to photograph a shopper’s exact skin tone and match it to makeup that’s in stock. devices - mobile apps & sensors From virtually trying on makeup to ordering a hairstylist at your doorstep, there is a beauty app for everything Confidential - Not to be shared without the author’s consent
  • 22. need for smarter devices in beauty - 
 applicators & sonic brushes Skin-care devices are playing an increasingly important role in uplifting the science involved in beauty regime. For e.g., JeNu Ultrasonic Infuser Systems attempts to fit into the consumers daily beauty routine. It claims to be the best and most efficient way to apply the treatment products already used by consumers. “Propels 6x more skincare into skin with 25% more infusing power.”
 
 Sonic cleanser skincare brushes are being sold as an effective tool for both female as well as male beauty or cleansing regime. 
 
 Clinique sonic boasts of a two toned supersonic brush to use on oilier areas, the T- zone, while the softer bristles work on the cheeks and more delicate skin. 
 Braun brush comes with a epilator attachment and a lit mirror. Clarisonic Aria comes armed with variable speed settings, has a built-in timer for the perfect customised cleanse, a stand as well as a magnetic charger. There is room for products like these to become smarter, more connected and integrated with mobile apps in the near future to remind users on the next usage, refill alerts, connect with the weather apps and suggest an increase in frequency of treatment, and send geo-specific push notifications, etc. Think IOT. Source: https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw Confidential - Not to be shared without the author’s consent
  • 23. augmented reality mirror: sephora ` Augmented reality is an effective marketing tool when combined with mobile, desktop, tablet or even deployed in-store. Brands are tapping into its ability to engage audiences creatively and give them experiences that can lead to trials and repeat purchases. Brands and retailers such as L’Oréal. and Sephora have connected with their audience more closely through augmented reality pushes in which users were able to test out and interact with products. Sephora's new mirror simulates makeup on a person’s face in both real time and 3D. Beauty lovers can try on makeup in this real- time, 3D mirror with just a tap. They can try out multiple colours and textures by tapping the colour on the screen, and see how it looks from all angles. Source: http://www.psfk.com/2014/06/sephora-augmented-reality-mirror-try-on-makeup.html Confidential - Not to be shared without the author’s consent
  • 24. wearables - my uv patch by l’oréal. L’Oréal, a non-tech company is now ready to use cutting edge wearable tech to promote a healthier lifestyle. By launching the UV patch, L’Oréal is raising awareness regarding the harmful effects of overexposure to sun that can cause premature ageing, wrinkles, and other skin problems including cancer. Using the right products from L’Oréal & La Roche-Posay sell and minimise the time spent, unprotected, in the sun can reduce these problems. L’Oréal considers the patches an important step in bringing about a behavioural change regarding overexposure to harmful rays. My UV Patch monitors daily skin exposure to UV rays and reports it almost like a fitness app does. The iPhone app opens with a camera view, and after taking a picture of the patch, the day’s exposure is displayed on a graph on the phone. You can check the metrics at any time and as many times as you like. When the Android app arrives, the patch will use NFC to connect and gather the data. Source: https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw Confidential - Not to be shared without the author’s consent
  • 25. influencers & content creators Social media has ushered a massive shift in marketing. Brands have transited quickly from passive monitoring to active engagement and creating brand communities. Communities of influencers, advocates, bloggers, vloggers and content creators are being used to penetrate the millennial tribes. These days, everyone is a content creator, and makeup fans are particularly tuned into the dynamic ones who are highly active online. Procter & Gamble (P&G) in Asia-Pacific has launched two new digital influencer campaigns to promote its SK-II skincare range. The #ChangeDestiny campaign enlisted 9 online influencers. Each created and distributed video content around the ‘Destiny Changing’ challenges they have overcome in their lives. The influencers' videos were uploaded to their own YouTube or Youku channels and distributed via a number of social networks. For the second campaign, P&G sourced four popular vloggers from Australia, Singapore and Japan to create and distribute videos that highlighted the benefits of SKII’s Facial Treatment Essence and Mid-day and Mid-night Miracle Essence sprays through "A day in my life" stories. StyleHaul is the largest original video content network on YouTube for fashion and beauty. A community of more than 6,000 original creators serving a global audience of style influencers who create, consume and share actively. Confidential - Not to be shared without the author’s consent Source: http://www.thedailybeast.com/articles/2014/08/24/inside-stylehaul-the-largest-fashion-network-on-youtube-you-ve-never-heard-of.html http://rightster.com/investor-news/rightster-group-plc-announces-partnership-with-procter-gamble-in-asia-pacific.html
  • 26. brand community - advocacy ` Brand communities are the next step in the consumer retention funnel and the penultimate goal for every customer relationship journey. Nurturing a community allows brands to get in touch with their audience in meaningful and genuine ways. It deepens the engagement with the brand and the consumers can be rewarded for their loyal participation. It is a win-win situation for consumers as well as advertisers. Consumers engage directly with the brands, are connected to their peers, derive value, share their stories and earn rewards / recognition. Brands receive first hand information and content from their consumers. Brand communities foster deep engagement and are excellent avenues to indulge in social exploration tactics, trials and product testing or comparisons. Asking fans to share their stories and photos about a product, getting members to review, rate, and share products within the community are common. When a visitor arrives on Sephora’s Beauty Talk branded community, they find there a like-minded tribe of makeup experts, and newbies, looking to discover the best makeup, hair, fragrance, or skincare products that are a match for them. Members spend 2x while “super-fan” community members spend 10x as much as non-community members. Source: https://www.clickz.com/clickz/column/2391666/2015-will-be-the-year-of-the-brand-community-here-s-why Confidential - Not to be shared without the author’s consent
  • 27. programmatic - shu uemura ` Shue Uemura collaborated with artist Karl Lagerfeld (and his cat Choupette) to release the Shupette line. Their target audience were mostly women between 25 and 30 who had previously purchased luxury beauty products online. They wanted to lead the young North American consumers along the path to purchase, from awareness to conversion. The brand leveraged DoubleClick Bid Manager and Google Analytics Premium to get a unified solution for managing website audiences and programmatic buying. Shu Uemura started the campaign with an awareness and consideration phase designed to increase website traffic & grow their email subscriber list. They tapped into a list of users who had already visited their site. They reached out to both existing and potential customers — those who had visited the web property and those who looked like them, using look-alike modelling. Lastly, the team re-marketed the Shupette line to its past website visitors. Using Google Analytics, Shu Uemura was able to determine which products past visitors were interested in and present them either with particular products from the Shupette line or an offer to win the entire collection.  The Results Drove almost 2X the anticipated revenue Exceeded CPA targets and achieved a 2200% return on ad spend (ROAS). Source: www.doubleclickbygoogle.com/articles/loreal-canada-finds-beauty-programmatic-buying/ Confidential - Not to be shared without the author’s consent
  • 28. 3 key takeaways (1) Connect everything, Share with everyone: Brands need to understand that the consumer is living in a hyper connected world. She expects the brand to play a more meaningful role in her life, connect with her and be more personal.
 
 Make it simple for the consumer to share her encounters with the brand. This will ensure she shares the experience with her peers. 
 
 Understand her need to “belong” is being replaced by her need to stay “connected”. The mobile is her 5th sense and enables her to sense the world around her. It provides independence and a venue for self expression.
 
 Chances are that the shopper at your aisle is armed with a smartphone. Create a complete digital, social and mobile ecosystem that connects with retail. Make the most of it. (2) Prioritise and leverage all your digital assets in an endless loop of experience: Beauty and skincare brands may have an amazing story to narrate. But the content and experiences are not uniform. They may offer a great in-store experience but a badly designed e-store or shoddy websites that are not optimised or social media content that is not speaking the consumers language. Many times, leveraging all the touch-points may not be possible due to resource constraints. 
 
 Brands need to carefully plan their priorities and must-win digital battles. Focus on assets that will deliver and where the biggest potential lie, then go after it. Lastly, they do not need to go it alone. If E-commerce is not your cup of tea, then tie-up with online partner/s. Ensuring you are connecting the dots to give a seamless experience across all your touch-points.
 (3) Take risks and evolve: Ensure that the team has the flexibility to take risks and are encouraged to do so. By running staid strategies, repeating same successes and tactics, the brand may be making short term gains but compromising on opportunities. 
 
 Digital does not always means high tech. Keep inventing ways to penetrate less technology savvy markets. Explore and discover hidden gems that can work more cost effectively - think ways to tap non-smart phone markets for Africa & Asia. 
 
 Try and leverage new technologies through incubators and pilots. Keep a part of your budget for trying the new and unexplored. Tie up with partners who can do it. Keep peering into the rear view mirror to learn from your failures, share your successes and keep dreaming bigger. Source: http://www.loreal.com/group/who-we-are/our-ambition | http://www.campaignlive.com/article/why-brands-short-millennial-women/1320918#KbCbdzw8Y2Ud6JfP.99 Confidential - Not to be shared without the author’s consent
  • 30. source & references 1. http://www.statista.com/statistics/254612/global-skin-care-market-size/ 2. http://www.statista.com/statistics/287643/global-male-grooming-market-size/ 3. http://www.cosmeticsdesign.com/Market-Trends/7-global-beauty-brands-that-are-listening-to- consumers 4. http://www.womensmarketing.com/blog/2015/02/how-women-shop-beauty-market-trends-2015/ 5. Digital-IQ-Index-Beauty-2015-EXCERPT 6. http://www.cosmeticsdesign.com/Business-Financial/E-commerce-accounts-for-only-10-of-beauty-sales 7. AT Kearney Beauty and the E-commerce Beast 8. https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw 9. https://www.techinasia.com/wechat-social-commerce-chinaccelerator 10. http://walkthechat.com/wp-content/uploads/2015/05/wechat-casestudy-2.jpg 11. How top beauty brands stand out: http://newscred.com/theacademy/learn/beauty-brands 12. http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw 13. http://blog.curalate.com/2015/08/20/how-3-beauty-brands-overcome-ecommerce-obstacles/ 14. http://www.l2inc.com/lancômes-bareselfie-project/2014/blog 15. www.loreal.com/group/who-we-are/our-ambition 16. http://www.netbase.com/blog/press-release/netbase-announces-comprehensive-brand-passion-report- on-beauty-and-skincare/ 17. http://www.prnewswire.com/news-releases/loreal-Paris-brings-the-red-carpet-to-women-in-real- time-272619061.html 18. http://www.thedrum.com/news/2015/04/07/body-shop-preps-audience-centric-search-strategy-win- new-customers 19. https://www.l2inc.com/the-body-shop-tops-our-UK-beauty-report/2014/blog 20. www.loreal.com/group/who-we-are/our-ambition 21. http://mashable.com/2011/08/01/beauty-brands-facebook/#TAlV6ZgeEqqw 22. http://www.mobilemarketer.com/cms/news/strategy/21922.html 23. http://www.mobilemarketer.com/cms/news/software-technology/20215.html 24. https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw 25. http://www.psfk.com/2014/06/sephora-augmented-reality-mirror-try-on-makeup.html 26. https://www.youtube.com/watch?time_continue=66&v=EhuI4vGZbvw 27. http://www.thedailybeast.com/articles/2014/08/24/inside-stylehaul-the-largest-fashion-network-on- youtube-you-ve-never-heard-of.html 28. http://rightster.com/investor-news/rightster-group-plc-announces-partnership-with-procter-gamble-in- asia-pacific.html 29. https://www.clickz.com/clickz/column/2391666/2015-will-be-the-year-of-the-brand-community-here-s- why 30. www.doubleclickbygoogle.com/articles/loreal-canada-finds-beauty-programmatic-buying/ 31. http://www.loreal.com/group/who-we-are/our-ambition 32. http://www.campaignlive.com/article/why-brands-short-millennial-women/ 1320918#KbCbdzw8Y2Ud6JfP.99 33. http://blog.euromonitor.com/2011/09/special-report-global-m-commerce-set-for-strong-growth- potential.html