For L’Oréal Group — which has always been the world’s leading beauty company — the crucial question has always been how to venture into the unknown, seize what’s starting and shape the future.
In the fast-paced and ever-shifting landscape of the beauty market, remaining unbeatable hinges on relentless innovation. This innovation is not just about fueling the company’s own future; it’s about blazing new trails in the market, sparking fresh inspiration across the industry — and ultimately propelling the sector into a new era of transformation. Faced with such challenges, L’Oréal Group has already turned in a stellar performance.
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In a market environment rife with uncertainty, innovation has emerged as the lifeblood for beauty companies to sustain their dynamism and fuel long-term growth. Since 2020, the beauty industry has seen a transformative shift, with evolving consumer attitudes, the rise of new paradigms and the relentless march of technology redefining products, brands, corporations and the entire supply chain.
Today, North Asia (Greater China, Japan and South Korea) stands out as the most vibrant hub in the beauty market. The region’s sophisticated and evolving consumers pose new challenges for beauty businesses while also serving as a wellspring of inspiration for industry innovation.
In this landscape, sophisticated and savvy consumers are on the hunt for a more elevated and multifaceted “beauty,” with their desires and preferences iterating at a rapid pace. They’re not just looking for products with a strong technological endorsement and proven efficacy; the experience and sensory pleasure they get from using these products have become critical in their purchasing decisions.
Beyond the products, there’s a growing appetite for tailored, smart services, a retail journey that’s fresh, immersive and emotionally rich and content that’s creative and resonates on a deeper level. At the same time, as sustainable consumption gains ground, consumers are also paying closer attention to the values and actions of beauty brands on environmental protection and social responsibility.
These shifts are prompting beauty companies to rethink how they can deliver hyper-personalized products, highly professional and efficient services, all-encompassing delightful experiences and brand stories that genuinely resonate with the consumer. Technology is emerging as a powerful catalyst to meet these advanced demands.
L’Oréal Group’s decision to pivot towards becoming a beauty tech company in 2018 truly showcased its visionary strategic insight. The beauty industry is deeply intertwined with science and technology and securing a leadership role often hinges on robust tech capabilities. In today’s fiercely competitive landscape, technology is increasingly the ace up a beauty company’s sleeve.
As Vincent Boinay, president of the North Asia and chief executive officer of L’Oréal China, puts it, “this transformation isn’t just about adopting new tech; it’s about a radical rethinking of how we engage with consumers, how we innovate and how we craft beauty experiences that are both personalized and inclusive. It’s about breaking the boundaries and redefining the future of an industry we’re leading.”
From dermatological R&D to innovative products and the ongoing improvement of beauty experiences, technology has emerged as a critical pillar of L’Oréal’s competitiveness, with the L’Oréal North Asia Big Bang Beauty Tech Innovation Program (Big Bang) marking a significant milestone in this transformation.
Boinay shared with WWD China, “the mission of L’Oréal is to craft beauty that shapes the world, placing technology, particularly in the beauty sector, at the core of modern aesthetics. Open innovation is a quintessential example of this approach. At L’Oréal, we’re joining forces with startups and a wide array of partners in the creation of the beauty of the future”.
As Big Bang expands its reach and refreshes its focus across various markets, the open innovation ecosystem it fosters is maturing, not only breathing continuous life into L’Oréal but also emerging as a key driver in propelling the beauty industry forward.
Breaking New Ground in a Competitive Red Ocean Market
Amid the intensifying rivalry in the existing market, the secret to gaining an edge might just be creating new increments. Technological prowess is the “infrastructure” that beauty companies rely on to craft innovative products. Whether it’s winning over consumers with pioneering ideas, meeting their needs with tailored experiences, or expanding the definition of beauty products through a fusion of hardware, smart software and algorithms, tech innovation is emerging as a crucial asset in future competition.
Big Bang first kicked off in China in 2020, with a commitment to collaborating with startups and SMEs to develop innovative solutions that offer consumers more personalized products, services and experiences — effectively pioneering the beauty tech innovation challenges for startups in China. By 2023, it had drawn the participation of over 2000 startups and SMEs, successfully incubating more than 60 projects that have been implemented.
Since its inception, L’Oréal has consistently leveraged its profound insights of trends in the beauty industry to empower emerging players in the beauty tech arena, offering fresh approaches for major beauty conglomerates to swiftly tap into market dynamics and carve out a niche in new competitive fields.
From the get-go, Big Bang laid out three main tracks: future science, operations 4.0 and phygital to catch up the consumer trends in the North Asia beauty markets and explore solutions for the beauty industry to tackle new challenges.
It later expanded to include transversal topics of green & sustainability and AI. At the recent North Asia Big Bang Innovation Summit, Big Bang announced plans to introduce a sustainability track starting next year. These tracks encompass key trends in the beauty tech sector, which align with the strategic focus in beauty tech of the L’Oreal Group.
Boinay believes that “technology is the key to a sustainable plane.” He continues, “At L’Oréal, we’ve made a conscious decision to prioritize both financial success and the protection of our planet. This dual commitment is the driving force behind our Essentiality of Beauty initiative. We’ve launched L’Oréal For The Future, which is all about integrating our business performance with technological innovation and sustainability, laying the groundwork for the future. Technology is central to this mission because it not only aids in our protection of the planet but also positions us for greater strength and growth in the future.”
Over the past few years, L’Oréal has collaborated with several participating companies to develop cutting-edge and innovative products and experiences. A prime example is the patented nanochip technology in Lancôme’s Renergie Nano-Resurfacer 400 Booster, co-developed with a participant from the first Big Bang. This device, featuring over 400 ultra-precise nano touchpoints, delivers salon-quality results at home, perfectly tapping into consumers’ desires for a premium at-home beauty experience.
A former Big Bang participant, the biotech company Shinehigh Innovation, has received investment from L’Oréal China’s Shanghai MeiCiFang Investment Co., Ltd. Biotechnology has been a key focus for L’Oréal, playing a significant role in the company’s shift towards green science and holding immense potential for developing high-performance skincare and haircare formulations.
Shinehigh Innovation’s intelligent self-assembly technology has unlocked the possibility of combining previously unattainable ingredient blends, leading to the production of terminal beauty products with higher efficacy and ecological sustainability.
At the seventh CIIE this year, the L’Oréal Big Bang Beauty Tech Innovation Exhibition made a return appearance in the Innovation Incubation zone, spotlighting groundbreaking beauty tech solutions at the forefront of biotechnology, digital technology and innovative beauty devices. As Big Bang’s influence and reach continue to grow, Big Bang — now in its fifth year — is sparking even more innovative energy in the beauty tech sector.
From North Asia to the World, Fostering Cross-regional Synergy in the Innovation Ecosystem
North Asia has become a treasure trove of beauty innovation. In recent global rankings of urban innovation ecosystems, cities like Beijing, Shanghai, Shenzhen, Tokyo and Seoul consistently top the lists — with the innovation prowess of China, Japan and South Korea becoming increasingly formidable.
Greater China Area – One of the Key Sources of Beauty Innovation
In China, the support system for fostering entrepreneurship and innovation is continuously improving. Key tax incentives supporting scientific and technological innovation span the entire spectrum of tech activities, from venture capital investment and R&D to the commercialization of findings.
With policy support, various urban clusters across the nation have established scientific and technological innovation centers, each with its own focus. Among them, the Guangdong-Hong Kong-Macao Greater Bay Area stands out as a particularly promising urban cluster for development prospects.
The thriving physical retail industry in Hong Kong has long been a key driver of its beauty market and advancements in technologies like AI are now ushering in a smarter, more personalized shopping experience. Innovation hubs such as the Hong Kong Science and Technology Park (HKSTP) have been a steady source of support for talents, entrepreneurs and tech firms over the years. The high-tech and sustainable industry in the Taiwan Area of China is also highly developed, with its startup ecosystem continually expanding.
The Chinese market has become one of the important sources of beauty innovation, boasting a very mature online ecosystem where new models and platforms in the digital field are setting global benchmarks and driving innovation in beauty experiences and retail. As a major player in beauty manufacturing, China is also leading the way in the transformation of the manufacturing sector through technologies like artificial intelligence and the Internet of things.
Japan and Korea Markets – Featuring the Spirit of Craftsmanship and Innovative AI-Driven Devices
Japan’s beauty industry is deeply rooted in the first place, forging a unique Japanese beauty culture with its leading technological strength and craftsmanship spirit. In recent years, Japan has been at the forefront of developments in biotechnology, material science and eco-friendly technologies, consistently driving innovation in beauty products and advancing sustainable practices.
South Korea — another beauty powerhouse — boasts a well-established innovation ecosystem in the beauty sector. Its strengths in digitalization and artificial intelligence are opening up new horizons for innovative beauty devices and personalized experiences.
North Asia, a fertile ground for innovation, has long been a stage for companies and brands to shine. Capturing the opportunities it presents requires companies to demonstrate the ability to integrate resources, respond quickly and explore the unknown. As a “unicorn Trex” with both strength and flexibility, L’Oréal has welcomed the best time for development.
Expedition of Big Bang in North Asia – Maximizing Regional Synergy Effects
Following a successful trial in China, Big Bang expended the program to regional level, covering markets of China, Japan and South Korea. L’Oréal signed an MOU with the Ministry of SMEs and Startups (MSS) of South Korea to nurture more cutting-edge beauty tech advancements.
Moreover, the J-Startup entrepreneurship support program, a collaboration between Japan’s Ministry of Economy, Trade and Industry (METI) and the Japan External Trade Organization (JETRO), will also provide support for Big Bang project. In the same year, L’Oréal pioneered the way by introducing international startups to present at the innovation incubation zone at CIIE, which was met with rave reviews from both exhibitors and attendees. This year, companies from Japan and Korea are once again part of this prestigious event, showcasing the latest advancements in beauty technology.
In 2024, Big Bang is set to extend its reach to the Hong Kong SAR and Taiwan region of China, achieving full coverage across the five key markets in L’Oréal’s North Asia portfolio. Inspired by the successful pilot in North Asia, L’Oréal also launched the Big Bang project in the South Asia Pacific, Middle East and North Africa (SAPMENA) region in this year.
Shelly Chiang, chief digital & marketing officer and head of corporate affairs and engagement at L’Oréal Taiwan shared with WWD China, “We are particularly thrilled that Taiwan Subsidiary is participating in Big Bang program for the first time this year. We have been an import market, essentially followed the roadmap directed by headquarter. Big Bang presents a unique chance for us to connect with local innovators here in Taiwan and explore new opportunities in business. Given the ‘go to market’ nature of Taiwan, we place greater emphasis on the creation of a unique consumer experience.”
“Big Bang in Hong Kong is the first open innovation program in the local beauty industry,” said Eva Yu, president and managing director of L’Oréal Hong Kong. “We hope to collaborate with startups to drive industry innovation and bring positive changes to the beauty and retail sectors in Hong Kong. By leveraging new technologies like immersive experiences, we look forward to presenting our brand stories in innovative ways to engage a wider consumer base.”
With the L’Oréal China Big Bang project as its springboard, a global innovation ecosystem is taking shape. As innovation elements from various markets collide and interact, the regional synergy will amplify the power of “open innovation.”
Boinay said, “Big Bang is more than just a project; it’s a testament to our commitment to open innovation and a one-of-a-kind platform that enables us to bridge the major markets within the North Asian beauty tech ecosystem — capitalizing on the unique strengths of the ‘Beauty Triangle’ of China, Japan and Korea — to ignite unprecedented synergies and expedite the creation of groundbreaking beauty solutions.”
Linking the Full Industry Chain, Mapping Out a Bright Future for the Beauty Industry
To sail safely through the swift currents of the beauty market, ongoing innovation is vital for businesses to sidestep risks and secure their long-term growth. The innovation ecosystem formed by Big Bang is not just setting the stage for the bright future of L’Oréal; it’s also driving the entire industry to a phase of higher quality.
Beyond fostering innovative companies, Big Bang is also bringing in a variety of partners to this ecosystem, engaging the full industry chain and continuously injecting new momentum into the global beauty market.
At the second Big Bang, L’Oréal joined forces with the Oriental Beauty Valley to provide incubating enterprises with specialized funding, value chain resources and expert guidance. The third Big Bang introduced exclusive meetings with investors, incubation hubs and innovation partners. The fourth Big Bang reached the initial collaboration with MeiCiFang, marking the beginning of a tightly-knit Big Banger community, enhancing interactions and partnerships with past participants through innovation-sharing sessions and maintaining ongoing collaboration with ecosystem partners such as Cathay Capital and Hurun Group.
In the realm of international collaboration, Big Bang has maintained a multi-year partnership with Business France. In 2023, L’Oréal, along with Business France and Oriental Beauty Valley, signed a MOU for the Sino-French Strategic Cooperation Initiative, the French Startups and SMEs Incubation Platform — amplifying support for French innovators in China regarding exchange, cooperation, project incubation and investment.
This also opens new avenues for Chinese tech innovators to engage internationally and broaden their global cooperation. This year, Oriental Beauty Valley signed a deal with CTIBiotech — a winner from the French track of Big Bang — to bolster its business expansion in China.
As an important platform for international cooperation and exchange, the China International Import Expo (CIIE) has also become a stage for overseas companies to access more opportunities and resources. The L’Oréal North Asia Big Bang Beauty Tech Innovation Program Exhibition has been staged in the innovation incubation area of the CIIE for two consecutive years, attracting the attention of numerous incubators and venture capital institutions and opening up more possibilities for the development of presenting overseas innovative enterprises in the Chinese market.
For a cosmetics powerhouse like L’Oréal, its robust strength, which includes incomparable scale, resources and experience, isn’t the sole factor that has allowed it to weather cycles and remain at the helm. Flexibility is key to its resilience and dynamism. The innovation ecosystem it has nurtured is also expanding its global impact, synergizing with various forces across the industry to advance the vision of “create the beauty that moves the world.”