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Speaker 1: You are making an introduction to a number of devices hardware,

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Speaker 1: chief among them the Airlight Pro. Yeah, why is that

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Speaker 1: significant the Lorrial.

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Speaker 2: Well, it's significant for many reasons. First of all, we

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Speaker 2: truly believe that the future of beauty is this combination

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Speaker 2: of science, chemistry, and technology for a beauty that's going

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Speaker 2: to be both more inclusive, more personalized, and more sustainable.

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Speaker 2: And Allied Pro is the perfect demonstration of all three.

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Speaker 2: It's more sustainable because it's saved energy thirty percent less energy.

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Speaker 2: It's more inclusive because we've managed to create add ons

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Speaker 2: to this hair dryer that allows to recognize the different

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Speaker 2: types of hair, curly hair, straight hair. And it's very

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Speaker 2: personalized because it can have your name on and it

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Speaker 2: can be programmed for you to get the best performance.

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Speaker 2: And it's really increased performance because hair dry is faster,

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Speaker 2: is more moisturized. So it's really the combination of what

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Speaker 2: Lorel stands for, I providing consumers with the best beauty

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Speaker 2: experience and beauty products.

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Speaker 1: So with that sort of high spec list, the target

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Speaker 1: is actually the consumer, not necessarily in the salon or

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Speaker 1: in industry.

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Speaker 3: Well, it's also the salon. You know.

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Speaker 2: Laoreale was born with hair salons are founder Eugene Schuela

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Speaker 2: created the first safe hair dye for Salon.

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Speaker 3: So we actually developed this hair dryer with.

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Speaker 2: The zoov startup, the engineers, but also with hair stylists

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Speaker 2: that were put to contribution, to design every bit of

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Speaker 2: it and to make sure that the product we were

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Speaker 2: creating was satisfactory to them because they are the best

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Speaker 2: experts in hair.

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Speaker 1: There's ALI pro, then there is a range of devices

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Speaker 1: that are focused on color, and then there's Meta Profiler,

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Speaker 1: which is in partnership with Georgio Omani. Yeah, and that

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Speaker 1: is where the AI competent seems to come in. Talk

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Speaker 1: to me about Loreal's AI competent.

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Speaker 2: Well, you know, we've been using AI for for years

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Speaker 2: and now too. Yeah, we have I'm not talking about

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Speaker 2: generative AI, but I'm talking about AI because we've we have,

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Speaker 2: for example, this tool that's called fast Color, which help

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Speaker 2: us use all the knowledge we have of dyes of

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Speaker 2: hair color results and to create much faster new hair

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Speaker 2: color combination.

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Speaker 3: So we've been using AI for a while.

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Speaker 2: We're using AI to improve the efficacy of our advertising,

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Speaker 2: but more importantly in the product you're talking about Metro

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Speaker 2: Profiler we're using AI to really help help the consumer

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Speaker 2: have the most accurate diagnosis of the state of their

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Speaker 2: skin and therefore be recommended.

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Speaker 3: The best products.

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Speaker 2: Because your skin my skin are very different, we may

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Speaker 2: not use the same arm any products, and metaprofiler will

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Speaker 2: help both of us make the right choice and that's

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Speaker 2: how we increase our satisfaction.

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Speaker 1: Nikola, how big is the market for all this that

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Speaker 1: the devices, the hardware from in a dollar value or

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Speaker 1: a eurovalue.

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Speaker 2: Well, we'll not communicating on a dollar value because it's

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Speaker 2: very hard to assess because I'll give you the example

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Speaker 2: of the diagnosis we're talking about metro profiler. When you're

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Speaker 2: in the counter and you're giving advice to a consumer.

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Speaker 2: If you just cheatchat and have a man or women

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Speaker 2: to women advice conversion rate is nine percent, so nine

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Speaker 2: percent of women will buy something.

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Speaker 1: In terms of a sales compassion.

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Speaker 2: When you do it with this type of tool like metaprofiler,

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Speaker 2: it goes up to seventy three percent. So you can

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Speaker 2: see that it's not just the how much meta profilers

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Speaker 2: we're going to be selling, actually we're not selling this one,

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Speaker 2: but it's how much products and how much satisfaction will generate.

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Speaker 3: To it's through its usage.

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Speaker 2: Of course, we have high ambitions for this Allied Pro

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Speaker 2: product in combination with Lorel Professional, but it's too early

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Speaker 2: to tail as the terms in terms of dollars.

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Speaker 1: You have a technology footprint in my hometown San Francisco.

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Speaker 1: You have teams working on R and D and you've

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Speaker 1: developed these products. My question is why you could have

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Speaker 1: gone out and bought a beauty technology startup or several

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Speaker 1: technology startups and just acquired the technology.

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Speaker 2: Well, you know, we're What we're trying to do is

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Speaker 2: to tap into a very wide ecosystem of startups and

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Speaker 2: there's not one startup that does it.

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Speaker 3: So what we like to do is.

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Speaker 2: To combine our expertise, our knowledge, our data. We have

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Speaker 2: ten petabytes of data on beauty with startups that are

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Speaker 2: focused on specific solutions. And here the example of Zuovi.

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Speaker 2: They were working on hair dryers. They presented a new

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Speaker 2: version last year was called Halo, and we've been working

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Speaker 2: together to make this Ali Pro as the best hair

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Speaker 2: dry on Earth, I hope. And we work with others

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Speaker 2: for the Lorreal water Save, which is a device that

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Speaker 2: allows to save water when you're into your hair sixty

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Speaker 2: percent less usage of water, which is very important in

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Speaker 2: today's daily age. And this is another startup which we've

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Speaker 2: actually finalized the acquisition of. By the way, we've started

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Speaker 2: investing in them. So every startup, and we'll see here

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Speaker 2: at the CES that there are many many more that

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Speaker 2: come up with ideas, different types of expertise which we

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Speaker 2: try to combine with our own knowledge.

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Speaker 1: It is a great pleasure to be with you here

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Speaker 1: in less Spain. You have flown in, I have flown in,

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Speaker 1: and people from all around the world have flown in.

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Speaker 1: So I want to ask you about the travel retail market.

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Speaker 1: You know there was softness towards the end of last year.

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Speaker 1: What signs are you seeing about that business line in

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Speaker 1: the new year.

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Speaker 2: Well, I think there are. You know, there are two

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Speaker 2: sides to this story. On the one hand, there's the

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Speaker 2: travel retail overall. I think it remains a fantastic business.

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Speaker 2: People are traveling again, and travel retail has always been

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Speaker 2: and will remain a fantastic showcase for our brands. Many

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Speaker 2: consumers actually discover our brands when they are in these airports,

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Speaker 2: and they are very valuable customers. What's been happening over

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Speaker 2: the last couple of months or last year is a

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Speaker 2: reset of the Asian travel retail market with changes of practices,

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Speaker 2: and that has affected the sales to consumers and the

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Speaker 2: sales of this market. I think this is going to

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Speaker 2: be getting better progressively over the twenty twenty four you

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Speaker 2: and probably second half of twenty twenty four, which should

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Speaker 2: be very good for travel retail.

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Speaker 1: It's hard to come to CEUs and talk about beauty

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Speaker 1: or to motive consumer electronics and find something in common.

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Speaker 1: But I think one thing that they do have in

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Speaker 1: common is that everyone wants to know about the Chinese

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Speaker 1: consumer and the China market because of the spending power

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Speaker 1: the European Union in China are in talks in working groups.

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Speaker 1: The issue that was identified for your industry, Beauty was

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Speaker 1: that China wanted disclosures about the composition of the goods

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Speaker 1: you want to sell in that market, and there was

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Speaker 1: concern about the volume of data that you have to

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Speaker 1: hand over. Where are we at in that process?

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Speaker 2: Well, you know, first of all, I have to, you know,

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Speaker 2: reaffirm my total confidence in the future of the Chinese market.

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Speaker 3: It will remain a very important.

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Speaker 2: Sort of growth for Laurel and for the beauty market

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Speaker 2: because middle classes are going to be increasing, so we

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Speaker 2: continue to invest in the Chinese market. And then there

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Speaker 2: are rules on this market that you have to respect,

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Speaker 2: and I think today we manage to respect the Chinese

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Speaker 2: regulations without disclosing all the secret of our recipes which

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Speaker 2: make us the number one beauty company in the world.

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Speaker 1: What is going to be the lorrial technology story in

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Speaker 1: twenty twenty four, if you can just pick one, well.

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Speaker 2: I think l I Pro is definitely going to be

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Speaker 2: a great technology story because I think we're redefining hair

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Speaker 2: drying and we're going to make stylists, which are our

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Speaker 2: number one partners where we were born, very very happy

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Speaker 2: with this technology we're providing them with