L’Oreal acquires beauty tech firm

French cosmetics group L’Oreal SA said yesterday that it would buy Canadian beauty technology company ModiFace, as it looks to roll out more digital services such as virtual make-up tests.

It did not disclose financial terms. ModiFace specialises in augmented reality and artificial intelligence applied to the beauty industry, an area L’Oreal and other peers have been developing as their online sales grow and customers increasingly follow cosmetics trends on social media.

The Toronto-based company employs nearly 70 engineers, researchers and scientists who have submitted more than 200 scientific publications and registered over thirty patents, according to a statement.

“With ModiFace we’ve acquired ... the stock of inventions they’ve already created, but more than that, the ability to look at reinventing the beauty experience in the years to come,” said L’Oreal’s chief digital officer Lubomira Rochet.

L’Oreal, the world’s biggest cosmetics company, made around 8% of its sales online in 2017, from just over 5% in 2015.

The company has already launched tech-savvy items such as sensory brushes that tell you how to care for your hair, or phone apps for virtual testing.

Earlier this year, it rolled out a “Style My Hair” application developed with ModiFace allowing people to see how they would look with different coloured dyes.

ModiFace’s technology also extends to services such as skin diagnosis.

L’Oreal now spends 38% of its media budget on digital campaigns.