Philipp Markmann

Your ambition is to grow and gain new consumers worldwide. How realistic is this in times of Covid-19? 
"We constantly reinvent ourselves. Years ago, we made the fundamental choice that digital is a perfect match with beauty. That's why we started investing in digital capabilities and technology very early on. This has really paid off during the challenging time of Covid-19, which has been a huge digital stress test for many industries, with stores closed and consumers predominantly on their mobiles. The good thing is, we were ready."

Has Covid-19 been an accelerator? 
"Yes, big time. Within a couple of months, we have probably leapfrogged another two or three years in terms of the transformation of the group. For example, e-commerce boomed and made up more than a quarter of global group sales last year. It also rapidly accelerates the transformation of our media mix, towards very digital and being on all the new platforms where the consumer is."

How did L’Oréal perform last year? 
"The most important questions are: are we gaining market share, and are we building leadership in our categories? That's absolutely the case for both e-commerce and brick and mortar, and also across different categories and countries. So, we're on a good track. But of course, we have to constantly disrupt and challenge ourselves to keep winning in this environment."

With less occasions to go out, due to lockdowns, are people using your products as much as before?
"We definitely observed a shift in categories during different phases, depending on what stage a country would be in. Early on, it was rather challenging for the professional products industry, because hairdressers and salons were closed. Makeup didn’t grow either, simply because there were less occasions to wear it. But then we saw a big and ongoing boom in skin care, of wellbeing, cocooning, body care, and hygiene. People like to treat themselves and make the best of the situation."

How do retailers respond to your direct-to-consumer selling? 
"Direct-to-consumer is important, but we have very established and flourishing partnerships with big retailers. Through our own e-shops we learn a lot of what's working in terms of content and services. And we can share this expertise with our retail partners."

How big a part of your strategy are influencers?
"Beauty is very social because it's very visual. So, we were on social media and social networks very early on with exciting content that people love to share and engage with. Naturally this is very close to our marketing."

Where lies your main focus: one-to-many or one-to-one?
"It's both. It depends on the moment in the consumer journey. The one-to-one consultation plays a huge role in reinventing the department store feel of a beauty adviser online. But live streaming and live shopping, which is one-to-many, are booming globally."

What is the main challenge for brand owners who want to make a similar digital leap?
"You need to be very clear and strict about the purpose of the brand. What does it stand for? You need to manage this very consistently across your different touch points. Even big established brands must constantly reinvent themselves, whilst staying true to who they are and be relevant for consumers. Our big brands constantly evolve and adapt to new consumer demands, and they are growing even faster than the smaller brands."

What is the main challenge for brand owners who want to make a similar digital leap?
"You need to be very clear and strict about the purpose of the brand. What does it stand for? You need to manage this very consistently across your different touch points. Even big established brands must constantly reinvent themselves, whilst staying true to who they are and be relevant for consumers. Our big brands constantly evolve and adapt to new consumer demands, and they are growing even faster than the smaller brands."

How difficult was it for you to convince L’Oréal board members or the senior VP to follow this digital strategy?
"All of our top management and group executive committee are 100 percent behind this transformation. Of course, as a leadership team it is our role to explain why we are doing this. There are discussions at every step of every transformation. You have to listen to people, be very clear in articulating your vision, and explain why it's crucial to the company's success. You have to inspire others to follow and show them that we all win."

Looking back at 2020, the Covid-19 year, which accomplishment are you most proud of? 
"Of how we managed this big general shift with all the teams, how fast we adjusted our plans, shifted our investments, capitalized on this huge e-commerce explosion, and grew faster than the market. That was a major achievement."

What can we expect of L’Oréal in the near future?
"Our vision is pretty clear. After all the testing and learning, it's now about scaling things massively, which is a big success factor for the company. Furthermore, social commerce will grow even stronger in Europe, as well as live shopping in China, which is a huge part of the business."

You've been at the company for fifteen years. What makes you stick around? 
"Innovation and disruption are at the heart of the company. That keeps me motivated and helps me grow. The learning curve is just amazingly steep. It's a culture of very motivated, very diverse people that want to collaborate, win, and build cool products and services. Being a global company, with more than 30 brands, there are many career options and locations. Adapting to these different working environments and cultures is fun."