1. 1

2. FROM MANAGING
THOUSANDS TO
SERVING BILLIONS
Turning
disruptions
into
new
opportunities.

3. AND A REVOLUTION HAPPENED !
3
Internet
Broadband
Social
Mobiles
Cloud…

4. IT CREATED THE “BIG BANG FOR BRANDS”.
4

5. 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…
5

6. VALUE FOR THE SHAREHOLDERS.
6
B to C
Push 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.

7. 7
C to C
Network Mode
Brand 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.

8. CUSTOMER IS GOD !
8

9. Connect
–
Collaborate
–
Collectively
Deliver
CUSTOMERS ARE CREATORS,
PRODUCERS, AND CONSUMERS.
9

10. 10
Industrial Age.
MASS RETAIL
MASS Media MASS PRODUCTION
Thousands
of Products

11. 11
Digital Age.
NEIGHBORHOOD RETAIL
MEDIA CURATION CUSTOMIZATION
Billions
of Customers

12. 12
Is
L’Oréal
Still
Immune
?
FROM MANAGING THOUSANDS
TO SERVING BILLIONS.

13. 13
TAKING INSPIRATION OF A BRAND
WHERE THE CUSTOMER IS GOD.

14. 14
THE MODEL: CONSISTENT RETAIL 2.0
SINCE 1851.
Serving Local Communities Supporting Local Players
Customizing the Relation Advertising through WOM & PR

15. THERE IS BEAUTY IN THE NEIGHBORHOOD
WHICH CARES ABOUT YOU
15
A DIGITAL BRAND SINCE 1851 :

16. 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

17. 17
Most successful L’Oréal Brand

18. 18
Is
L’Oréal
Still
Immune
?
FROM HYPERMARKET RETAIL
TO NEIGHBORHOOD COMMERCE.

19. 19
CURATE YOUR DATA.

20. MOBILE IS THE NUMBER ONE
“STORE SHOPPING BEHAVIOR INFLUENCER”
20
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 shop
WSL//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)

21. Home page Regional page Local page
LOCATING MY STORE...
21

22. EVEN MAYBELLINE WON’T LET YOU MISS
ANY OFFER…
22
My Monoprix is 200m away... ...I receive a SMS...
...I stop by the store
for the beauty happy hour.

23. KIEHL’S AUGMENTED
PROXIMITY:
SNAP & SHOP

24. KIEHL’S OPENS BEFORE IT’S EVEN OPEN.
24

25. KIEHL’S STAYS OPEN WHEN IT’S CLOSED.
25

26. 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…
26
• Diagnosis and personal advices.
• Virtual Product Testing
• In Store Pick-up
• At home deliveries
• Training classes
& events
• Booking
massages
&
consultations

27. 27
A CONSISTENT CROSS-
CHANNEL EXPERIENCE.

28. DIGITAL IS THE KEY INFLUENCER, OFFLINE
28
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

29. THIS IS EVEN MORE SPECTACULAR IN BEAUTY
29
6%
Total Sales
are
Online Sales
72%
Offline Sales are
Influenced by
Online Browsing
78%
Total Sales are
Directly Influenced
by Internet

30. !
!
Expert
Advice
+
Diagnosis
+
Transac5on
E-­‐SKIN
!
MY DERMA SKINCARE ADVISOR
26
!
ON- AND OFF MUST COMPLEMENT EACH OTHER.
30
E-COMMERCE NEEDS & FUELS COMMERCE.

31. E-SKIN:
MORETHANE-COMMERCE,AMARKETPLACE.
• 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.

32. 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

33. GEORGES-EDOUARD DIAS
SVP DIGITAL BUSINESS
33
REINVENT YOUR RETAIL FORMAT.

34. LANCOME & YSL TURN TAXIS INTO
FASHION SHOPS
34

35. 35
L’OREAL PARIS SHAZAMS YOUR BEAUTY

36. 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

37. SOCIAL & MOBILE BUILDS A DEMAND-BASED
MODEL: NEIGHBORHOOD COMMERCE.
37
Billion Consumers
2
Shopper Marketing Support
SHOPPER MARKETING GUIDE
EMPOWERED ENTREPENEURSHIP
Store Kit
Features
Special Offers
Mobile Airtime
Digital Content
Social Services
LOYAL LADIES
JO
IN
MY CLU
B NOW!
Text: __
__
__
__
__
__
To
: 82
052
t$REAL$Social$commerce$is$not$necessarily$e>comm
commerce…$
$…It’s$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.

38. 38
Is
L’Oréal
Still
Immune
?
THE DIGITAL DISRUPTION :
PRIVILEGING CUSTOMER SERVICE
TO PRODUCT MARKETING.

39. ⇨ 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

40. THE BAXTER CASE.
40

41. 41
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.

42. 42