Thanks to Social Media | Regrowth of L’Occitane
While searching for news articles about L’Occitane and its social media campaign, I was attracted by an article named “Human Approach to beauty: L’Occitane Online Sales Grow 69% Thanks to Social Selling Initiatives”. The number of 69% growth actually grabbed my attention, and I wanted to see how my brand’s (Shiseido) competitor did well.
This news article describes how Hong Kong-listed L’Occitane International has expanded its markets and boosted sales. L’Occitane International includes brands: L’Occitane en Provence, Melvita, Erborian, and Elemis. Even though L’Occitane experienced extreme lost and shut-down of stores during the COVID-19 pandemic, it sought for new ways to recover its business and increase sales and profits.
“Social Selling” is the strategy L’Occitane used to drive sales and change its destiny. It refers to an emphasis on social media channels and focused on the relationships with customers. A key point in advertising and social media is: be human and care what your consumers think and want. By this way, appropriate management of social media platforms can build up bridge with customers worldwide and produce profits.
L’Occitane’s performance was successful in South Korean market because of its smart strategy on KakaoTalk, a very popular platform in South Korea, similar to WeChat in China. People can connect with each other, chat, post pictures, search, shop, and make a payment.
There’s a special service on KaKaoTalk: “KaKao Gifts”. This enables people to send and receive gifts from family members, friends, coworkers, and anyone you’re thankful. There’re lots of choices, including cafe vouchers and gifts of skincare, toiletries, interior decoration, cosmetics, and food. It’s amazing that you can simply browse items and send out gifts through the app. Gifts can be either delivered or as vouchers to use via the app. There’re three ways sending out gifts.
The 1st one is “gift giving in a chat”. You can click on the menu in a chat box and browse items in the gift shop. After writing down your message and pay for it, your gift will be sent out as a message to your friend.
The 2nd one is “gift giving for “friends with birthdays” page”. This is a feature of KaKaoTalk, in the friend page, that shows you clearly whose birthdays are coming or have past. Then, you can select a friend and then shop in the gift shop. You can also see your friend’s wishlist which helps you to send a nice gift.
The 3rd selection is “gift giving from the gift shop directly”. You can browse gifts firstly and then pick up a friend that you want to send gift for.
By utilizing the “KaKaoTalk Gift” function, L’Occitane made a success in South Korean market. It even achieved the top in the beauty category of the gifting platform. L’Occitane successfully increased its sales in South Korea through this strategy.
L’Occitane accomplished an increasing sales profits, not only in Asian market like China and South Korea, but also in Europe market and the U.S market. In Europe, the company proposed 68 social selling initiatives. In the U.S, it created a “pilot clientele program” and launched a new social selling platform. It’s a way to recover the U.S market that the brand suffered a lot during the pandemic.
This new website was created to encourage people to become a L’Occitane consultant. People who’re interested in skincare category and want to start up their own business can join the program. After you become a consultant, you can sell L’Occitane products and earn money.
The registration process requires an application fee of $49. There’s no lunch for free. However, by paying the $49 fee, you’ll acquire your “myL’Occitane business kit” which contains: “your personal myL’Occitane website, skincare education and business on-boarding, business support center, and exclusive pouch of several samples of best-selling L’Occitane products.”
On this new social selling platform, you can also purchase some L’Occitane products, including skincare, body care, haircare, and premium gift sets. It emphasizes on sustainable packaging and refills, that you can see from the “Our Story” category on the website.
This new social selling platform by L’Occitane enables the company to build up its team and advertise its beauty enthusiasm through the country. While it provides an opportunity for business starter, the company acquires revenues from the member fees. As more consultants join and become available, the company will strengthen an one-on-one relationships with new customers.
I like L’Occitane’s social selling strategy and admire its success in South Korean markets via KaKaoTalk Gift. Its new social selling platform and consultants program are creative and attracting. We can compare our brand and learn from this competitor~
