L'Oréal counts the cost of Singles Day

Following a hugely successful Singles Day in terms of sales, cosmetics giant L’Oréal is now facing accusations that its advertising around the event was fraudulent.

What happened  

Many consumers chose to buy L’Oréal facial masks during presale livestreams, when they were advertised as being the brand’s “lowest price of the year”. But these prices were actually 66% higher than the same products sold during L’Oreal’s livestream on November 11, Jing Daily reports. 

Thousands of buyers have complained while millions have viewed related hashtags on social media platforms. L’Oréal has apologised for the “overly complicated sales mechanism”, says a team is investigating, and it will propose a solution soon. 

Why it matters

L’Oréal reported a record turnover of 2 billion yuan for Singles Day but that figure may fall as consumers and livestreamers demand a refund of the price difference. More importantly, the brand needs to resolve the situation and prevent its reputation being damaged. 

It may also force a reappraisal of how best to use Singles Day. Should brands chase sales above all else, even as consumers are becoming disillusioned by the complexity of pricing offers? Or, as Jing Daily suggests, should it become more about brand/product exposure and building positive relationships with end consumers?

Sourced from Jing Daily, South China Morning Post