New consumers, new needs
The global cosmetics market undergoes significant changes - with emerging markets (with China, Brazil and India leading the way) already accounting for 53% of the world’s consumption and 87% of its growth. The globalisation of beauty, is the first main trend identified by L’Oréal Research.
Considering such a situation, the French group committed itself to understand and adapt to all women and men in the world in order to offer them the best of cosmetics in terms of quality, efficacy and safety. “The ability to innovate for new markets must therefore rely on in-depth knowledge of the culture, needs and preferences of Chinese, Indian and Brazilian consumers,” the company summarizes in a release.
In order to place consumers at the very heart of Research & Innovation, L’Oréal has decided to create the “Consumer Insights” International division as well as regional R&I hubs, on the model of the one existing in Asia. The aim is to strengthen research in emerging countries that currently host only 10% of the group’s 3,300 researchers.
In the context where huge non-European markets are skyrocketing, L’Oréal is convinced that innovation must take place where consumers are based. “The concept of design to value looks at consumer habits in a given location to develop an innovation.”
According to L’Oréal, innovation stems from an association of market intelligence (observing beauty rituals, emblematic products, cultural habits) and in-depth knowledge of skin and hair’s biology and physiology. The French cosmetics giant points out the example of kohl, an emblematic product in India, which is now being used as a source of inspiration for the development of new products.
Choose the right technologies
Second key factor of success, underlines to Laurent Attal, “to invest in technologies that will generate even greater innovation.”
L’Oréal is subsequently highly interested in genomic, and in the progress in stem cells, biphonotics and reconstructed skin …
Anti-perspirants and oily skin products are strategic for emerging markets. “In most of these countries, sweat and oily skin are seen as one and the same, and are intimately linked to climate, diet and physiology.”
Perceived efficacy and predictive evaluation
Third main trend regarding innovation: the efficacy perceived by the consumer and demonstrated by scientific and clinical proof.
“The notion and perception of performance is in continuous progression. For example, the quality of a shampoo or shower gel’s lather is not appreciated in the same way by all cultures,” explains L’Oréal.
To address these diverse expectations, L’Oréal wants to combine instrumental evaluation methods that assess clinical efficacy and objective evaluations of the product’s emotional and sensorial performance (brain imaging, “eye tracking” or sensorial mapping…).
