Loreal acquired Modiface, which became defacto go to AR platform for the beauty industry.
This marks a tide change for the incumbents of the beauty world, showing that big brands are willing to cash out for fast, flexible startups and the talent and fresh ideas they bring. Here, Rochet says, L’Oréal isn’t just supporting technology, but building up new brands like The Experimental Perfume Club.
In 2016, the business announced its ongoing involvement with London-based digital accelerator Founders Factory (launched by serial entrepreneur Brent Hoberman of MADE.com and Lastminute.com), and this brought about partnerships with startups like Tailify (a Norwegian leader in influencer marketing), Cosmose (a Polish digital ad service), Alegra (the Turkey-based content and eCommerce platform) and Veleza (a Lithuania-built beauty community).
Rochet also credits digital innovation with L’Oréal’s e-commerce boon: It’s now passed the 2 billion euro mark, with online sales representing 8% of the Group’s revenues. Modiface might have been L’Oréal’s first tech acquisition, but it’s doubtful it will be its last.
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