Having spent over a decade at L’Oréal, Joe Adam, National Business Manager, L’Oréal ANZ, has observed a fundamental shift in beauty shopping from a linear, in-store journey to an integrated, always-on experience.
A decade ago, discovery happened largely through traditional media, in-store animation or word of mouth. Today, consumers research deeply, engage in tutorials, read reviews, and “shop" via social media long before they ever set foot in store.
However, Adam highlighted that the Australian and New Zealand markets have remained, at their core, predominantly bricks-and-mortar, with most beauty purchases happening in physical retail, unlike the Asian market, where e-commerce has taken a significant share.
The bigger change was why consumers come into the store. Retailers have invested heavily in bespoke, immersive shopping environments, effectively building "beauty playgrounds" where consumers want to spend time, discover, test, and be inspired, rather than simply transact.
“While the online/offline channel mix hasn't shifted as dramatically as people assume, the purpose and experience of the physical store has been reimagined. Collaboration between suppliers’ marketing and data teams and the retailer has been key to driving the best returns,” said Adam.
“A great retailer-supplier relationship is no longer just between an account manager and a buyer, but across all business functions. Success looks like joint business planning grounded in data, willingness to test and learn together, and a shared commitment to elevating the shopper experience, not just the shelf.”
Adam added that new brands need to balance their media investment and that there were opportunities in hyper-personalisation at scale using AI and data, faster, more responsive supply chains that can capitalise on viral moments, and deeper integration of social commerce so discovery and purchase happen instantly.
Social media has also greatly reduced barriers to entry for new brands, and Adam has seen new entrants every week, so the challenge for new brands was building long-term consumer loyalty.
Additionally, social media has dramatically compressed the innovation and demand cycle, and trends can emerge and peak within weeks, not seasons. Therefore, retailers and brands need to be far more agile in range planning and replenishment.
Full interview in the latest issue here
