| Title | L'ORÉAL CPD UPCYCLING ECOMMERCE |
| Brand | L'ORÉAL PARIS / MAYBELLINE |
| Product / Service | L'ORÉAL PARIS MAKEUP, HAIR & SKIN CARE / MAYBELLINE MAKEUP |
| Category | A01. Fast Moving Consumer Goods |
| Entrant | MINDSHARE TAIWAN Taipei, TAIWAN |
| Idea Creation | MINDSHARE TAIWAN Taipei, TAIWAN |
| Name | Company | Position |
|---|---|---|
| Murphy Shih | Mindshare Taiwan | FAST, manager |
| Tina Lee | Mindshare Taiwan | FAST, associate manager |
| Zachary Chen | Mindshare Taiwan | FAST, supervisor |
In Taiwan's mass cosmetics industry, L'Oréal Consumer Products Division (CPD) is home to the two most leading brands, L'Oréal Paris and Maybelline. With the onset of COVID-19, sales were impacted dramatically due to a drop in traffic to their offline stores. This triggered the brands to seek further opportunities online. Exclusively using 3rd-party sites for E-commerce (EC), CPD’s main challenge is that they had limited access to their online shopper data because it was kept within the confines of those same 3rd-party e-tailers. In order to attract more potential customers, we now had an opportunity to upcycle our current EC system.
In Taiwan, Facebook penetration is extremely high at 87%, covering more than 95% of our TA. We worked closely with our e-tailer, pairing their data with Facebook using Collaborative Ads to create our CPD Optimized System (COS). COS helped to overcome the lack of 1st-party data enabling us to find valuable online customers more accurately and improving efficiencies of the conversion funnel. New audiences were mapped out and explored based on demographics, shopping behavior from EC, and user behavior from Facebook including: - Product views - Product adds to cart (w/o purchase) - Product purchases or not - Fanpage engagement with either brand - CPD’s website visitors - Consumer interests
After pre-tested campaign results were crossed with e-tailer site data into COS, 4 major points were revealed helping L’Oreal CPD to approach their target audience from both an analytic and creative point of view: -People are more likely to purchase promotional products as more than 60% of purchased items were sold at a discount -Growth is most likely to come from returning customers as more than 70% of EC site traffic is generated by them -Top 50 items are most likely to be purchased as more than 80% of EC campaign sales came from these items -Consumers are super attracted to hero product lines, as on average, more than 29% of EC sales came from each brand's top 2 product lines
COS ran from March 1, 2020 to November 30, 2020, broken down by 3 waves. Based on weekly performance results, L’Oreal CPD could now know which products to highlight on our e-tailer's upcoming promotions as well as which products to keep on sale. Multiple permutations of returning customers were created based on the behavior and were retargeted using A/B testing. Several product sets were set up segmented by the top 50 sales on the EC site, top 50 sales overall, and hero product lines. Also, dynamic ads were served by crossing our segmented product groups with optimized audiences in order to generate higher ROAS on 13 placements on Faceook and Instagram. Lastly, UX/UI on L’Oreal’s onsite landing page was improved by providing recommendations on which top products to feature.
The L’Oreal CPD Optimised System (COS) created through upcycling achieved: 10x lift on ROAS as compared to our pilot campaign in March. A large gain individually by L'Oréal Paris achieving more than 37% lift in YOY eCommerce sales. As a result, L’Oréal CPD increased their annual investment in EC by more than 2.5X.