INDIVIDUAL ASSIGNMENT
L’Oréal Case
Companies’ business & process transformation
at the digital era
1- The digital technologies use cases brought by Modiface to the traditional beauty product
purchasing and experiencing:
Modiface is a Canadian start-up that brings together researchers and experts in digital technologies.
Among its projects is the creation of a concept based on an “augmented reality software
development kit” AR SDK, dedicated to the cosmetics sector.
An augmented reality software development kit or AR SDK, allows developers to build digital objects
that appear to blend into the real world. An AR SDK is crucial to any business that creates AR
experiences. These tools offer functions such as 3D object tracking, image recognition, visual SLAM
(simultaneous localization and mapping), multi-tracking, and more, which allow developers to
produce digital images. AR experts can utilize these SDKs to develop mobile apps, marketing
experiences, and more. These SDKs are typically intended for specific frameworks and hardware;
however, some AR SDKs can be supported across multiple systems, creating more flexibility.
The cosmetic sector is getting bigger in these last years, we talk about a market share up from $483B
in 2020 to $511B in 2021 and with an annual compounded growth rate of 4.75% worldwide, it’s
predicted to exceed $716B by 2025. And $784.6B by 2027. Figures that attract investors and
shareholders to enhance these opportunities and develop its business model. in order to diversify
the company’s revenue.
By adopting Modiface solutions, which are a virtual makeup try-on, virtual hair color try-on, and
augmented reality shopping, the customers will virtually (e-commerce websites) test the beauty
product, and it will be easy for them to make the buy decision.
Driving Digital Change - People and Processes
INDIVIDUAL ASSIGNMENT
2- The joint outputs generated by L’Oréal and Modiface for beauty consumers.
Output Categories
Customer Benefits
L'Oréal and Modiface interests
E-Business
Based on his need, the customer - Consumer satisfaction
virtually tests the product
- Fast decision to buy the product
Solutions
The customer will have the - Gathering Data of Costumers
recommendation of adequate - Easy recommendation to costumer
product from the website
surrounding
Saving Time
The customer will save the time to - Save products dedicated to customer test
move in the store and test the
product
3- The value creation items or indexes for both parties: L’Oréal and Modiface
L’Oréal
Providing Online service based on new
technologies
Modiface
Making new technologies useful in the beauty
industry by integrating this solution
Data gathering: having a solid idea about the New solutions: Developing a new solution based
customer's needs by collecting data that will on customer data
be used in the next solutions
Solid Brand image: being the leader in the
cosmetic sector through using innovative
ideas
Partnership with a big company like l'oréal will be a
big push to Modiface business
Availability: This service is available in multi
e-commerce websites and physical point of
sales
Availability: This Solution is available on multi ecommerce websites and physical points of sales
Fast business Process: this virtual testing
product will make the buying process easy
This helps ModiFace deal with the big brands
through the L’Oréal partnership
4- The collaboration steps in the partnership story between L’Oréal and Modiface:
L’oréal decide to make a change that allows its business to optimize its operational processes and to
increase performance, while simultaneously offering simplified management and remote working.
In this way, the process of the testing product, which is very important for the customer, can be
digitized.
A group of engineers in a start-up called Modi face, develop a solution that allow consumers to
virtually try out products via applications like StyleMyHair, which simulates different hair colors, the
Armani Vending Machine, and the NYX Professional Makeup app for makeup. This technology is
available at points of sale, but also online, which significantly enriches the online purchasing
experience.
Driving Digital Change - People and Processes
INDIVIDUAL ASSIGNMENT
5- L’Oréal finally bought Modiface in terms of business transformation.
The acquisition of Modiface from l’oreal was a business model change, in order to bring the
possibility to unify the businesses and organizations of a company because it creates
transversal synergies and increases agility and collaboration in the working methods.
6- Innovative consumers experiences or territories L’Oréal could go to in a next transformation
phase?
In order to help the company to improve the performance management as well as the human
experience. L’Oréal should have a strategic objective of data gathering of costumer, from different
products and brands all over the world to exploit it to define new customer needs and target
audiences through a different platform.
Bibliography:
https://www.statista.com/topics/3137/cosmetics-industry/
https://www.g2.com/categories/ar-sdk
https://commonthreadco.com/blogs/coachs-corner/beauty-industry-cosmetics-marketingecommerce#statistics
https://www.loreal-finance.com/en/annual-report-2018/digital-4-3/modiface-reinventing-beautyexperience-augmented-reality-4-3-2/
https://www.loreal.com/en/beauty-science-and-technology/beauty-tech/discovering-modiface/
https://modiface.com/#solutions
Driving Digital Change - People and Processes