L'Oreal Plans Among the First Players of Metaverse

Post-epidemic, beauty consumers have become more accustomed to online consumption.

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(source: LOreal)

According to WWD， at a luncheon hosted by the Economic Club of New York，Nicolas Hieronimus talked about the next frontier of beauty in L'Oreal's view.

L'Oreal's 2022 financial report states that COVID-19 measures have impacted offline physical store sales. However, the report also reveals that L'Oreal's digital sales in China have experienced double-digit growth.

According to Morgan Stanley data, global e-commerce rose from 15% of total retail sales in 2019 to 21% in 2021. Due to the closure of physical stores and consumers prioritizing convenience, e-commerce in the United States may account for 31% of sales by 2026.

Post-pandemic, beauty consumers are more digital than ever, and Hieronimus plans to be one of the first in the metaverse. He believes that people's consumption habits have changed, and now it's more about online and offline(o-plus-o).

“They want to change often. If I wanted to go platinum blond tomorrow, we won’t be able to go back to what we had today. That’s something you can do in the metaverse, and so many of these players are changing their outfits every day,” He said in response to WWD's question. “It’s a great way to engage with our brands, and it’s a great way also to foster creativity.”

Beauty giant L’Oreal’s venture capital fund BOLD (Business Opportunities for L’Oreal Development) has invested in Digital Village, a metaverse-as-a-service platform and NFT marketplace for brands, creators, and communities. (read more)

L'Oreal prepared very early in the metaverse. In March 2022, it applied for 17 trademarks related to NFT and metaverse categories, involving brands such as Kiehl's, Maybelline, Pureology, Urban Decay, and Redken.

According to the data from Statista, the market size of the metaverse is expected to reach $47.48 billion in 2022 and rise to $678.8 billion in 2030.

“Hopefully one day, we’ll also be selling lipsticks in the metaverse,” he said.

Source: WWD