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In a complicated and challenging era, L’Oréal is thriving, thanks to its focus on people, innovation, technology and sustainability, while maintaining resilience and strong business performance.
Elie Sagiv, General Manager of L’Oréal Israel, shares insights into the transformative power of beauty and its impact on businesses, society, and each and every one of us.
Beauty is often seen as a luxury. How does L’Oréal view the power of beauty in today’s world?
“At L’Oréal, we believe that beauty is much more than luxury – it’s a basic human need. Beauty empowers, contributes to strengthening self-confidence and connects people across cultures, as reflected in our mission: “Create the Beauty That Moves the World”.
“Beauty is more than aesthetics; It also drives industries, creates jobs, and stimulates economies. Beauty can serve as an anchor of stability in challenging times, and is an essential component that contributes to people’s sense of personal well-being, mental health, and resilience”.
How does L’Oréal Israel continue to achieve strong results despite the current challenges?
“Resilience is a cornerstone of our success. Our teams demonstrate incredible levels of flexibility, agility, dedication and adaptability that allow us to continue our growth while coping with uncertainty.
“From day one, the safety and security of L’Oréal Israel’s people, business partners and the communities we serve has been our top priority. This principle has allowed us to ensure seamless business continuity, so that our products reach customers and consumers on time, as planned.
“We’ve implemented flexible strategies that have allowed us to keep our supply chain running and the shelves full, to make sure consumers continue to receive their favorite products without disruption.
“I also credit our success to our strong organizational culture that promotes cooperation, innovation, and a constant strive for excellence. We continued to strengthen collaborations with our partners (retailers, suppliers, and others) and increased investments and support for our brands and people.
“We are proud to be the market leaders in Israel with the highest market share and the fastest growth, which reflects the strength of our brands, the consumers’ trust in us and the extraordinary effort and talent of L’Oréal Israel’s people who have adapted themselves to new work methods while remaining committed to the common mission”.
How does L’Oréal’s corporate culture support entrepreneurship and agile decision-making?
“Although we are the largest beauty company in the world, with about 86,000 employees in 150 countries and 37 leading brands, we strive to promote an innovative and entrepreneurial organizational culture of a startup. We can be viewed as a giant ship sailing at the speed of a speedboat.
“Despite our size, we operate flexibly, quickly and efficiently. This culture allows us to chart a strategic path while at the same time react quickly to changes in the market, identify new trends and opportunities, and adapt to the changing reality.
“In Israel, the entrepreneurial spirit is particularly strong. We encourage our teams to think creatively, take responsibility, and drive bold initiatives. This is the culture that allows us to lead the market, with innovation and while connecting to consumers”.
You mentioned innovation. How does L’Oréal Israel drive change in the beauty industry through technology?
“Innovation is at the heart of what we do. L’Oréal invests heavily in research and development around the world, and in Israel we leverage the advantages of the local technological ecosystem.
“We aspire to a future of beauty which combines a physical, digital and virtual experience. We do this by incorporating technologies that are applied outside the field of beauty and adapting them to the dynamic world of beauty. Our goal is to create a beauty experience and a more holistic and thoughtful routine for consumers – more diverse, personalized, and accurate for each and every one, and of course more sustainable.
“We’re transforming the way people interact with beauty through augmented reality (AR) and artificial intelligence (AI). We’ve developed tools for virtual experimentation and skin diagnostics that allow consumers to personalize their experiences, making beauty more accessible and inclusive.
“For example, AI tools from brands like Lancôme, L’Oréal Paris, Kiehl’s, and La Roche-Posay provide personalized skincare, makeup, and hair tone recommendations and offer precision that our consumers want to have.
“We’re also constantly exploring new frontiers by entering more areas like gaming. Just recently, we launched an innovative campaign at CeraVe to promote awareness of skincare routines within gaming platforms (Minecraft and Roblox). This initiative not only connects with younger audiences in a novel and unexpected way, but also educates them on proper skincare routines. This is a great example of how we use unconventional channels to combine innovation with education and meaningful consumer value.
“Innovation is also evident in the way we create and deliver products. Our commitment to sustainability and green science ensures that they are embedded throughout the value chain. For example, we develop “Beauty Tech” products that benefit the environment and consumers, use biobased ingredients and formulas, reduce the use of plastic and packaging waste, and ensure that all our displays at the point of sale are ecologically designed”.
Sustainability and corporate responsibility are key issues. How do they shape L’Oréal Israel’s strategy?
“Sustainability is a core value for us. We are notably committed to L’Oréal Groupe’s global sustainability program, L‘Oréal for the Future, which sets ambitious goals to reduce our environmental footprint and create a positive social impact.
“The group’s goal is that by 2030, 100% of the plastic used in our packaging will be either from recycled or biobased sources, and we are on the right track to reach our goal. In Israel, we have switched to 100% renewable energy at all our sites, we are consistently reducing carbon emissions in transportation in various ways, including through sea transportation only, optimization of product delivery to customers, green solutions for the “last mile”, a gradual transition to electric vehicles and more. We are also launching more and more refill packaging in all product categories, an option that benefits both the environment and the consumers’ pockets.
“On the social level, we focus on empowering women and disadvantaged communities. For example, we operate three volunteer beauty centers in medical and rehabilitation centers, as part of a global initiative “Beauty for a Better Life”, in which beauty treatments are provided to women in rehabilitative situations. We recently launched a social initiative called “Beauty on the Go”, in which volunteers from L’Oréal Israel reach women in various vulnerable situations throughout the country, and provide them with moments of beauty, respite and empowerment.
“In addition, as a science and technology-driven company, we initiated “For Girls in Science”, an educational program in collaboration with “Alliance, Kol Israélite Universelle” with the aim of reducing the huge gender gap in science and technology (STEM) professions, encouraging, and providing tools for young girls to choose a career in science and technology.
“Our brands also play a vital role in advancing important social agendas, through longstanding partnerships with social nonprofits. For example, our L’Oréal Paris’ “StandUp” initiative aims to prevent sexual harassment in the public sphere, Maybelline New York’s “Brave Together” program raises mental health awareness among young men and women, La Roche-Posay’s “Save Your Skin” campaign emphasizes skin cancer prevention with free skin tests, and more.
“These activities are recognized and appreciated by our employees and are reflected in the high ratings we receive – Platinum+ (three years in a row) in the Maala ESG index.
How is L’Oréal’s approach as a people-centric organization manifested these days?
“Being a people-centered organization means prioritizing the well-being, safety, and security of our employees, customers, and communities, especially in challenging times.
“In times of uncertainty, we have consistently provided psychological support, employment stability, and recognition to ensure that our teams feel safe and valued. “Whether it’s implementing flexible work arrangements, providing access to mental health resources, or marking achievements, we focus on creating an environment where people feel valued”.
What do you look for in talent, and how do you define your leadership style?
“My experience of leading teams in diverse markets around the world has taught me that although the challenges may be different, the basic principles of leadership remain the same – setting a clear vision and creating an environment where people feel confident to make decisions, learn, innovate, and grow.
“At L’Oréal, we nurture entrepreneurial thinking that is especially important in the Israeli market. I’m focused on creating a cultural climate where people and teams feel empowered to take ownership and act with determination and agility. This requires setting clear goals and a collaborative approach. We have built a flexible organization where each team member understands their role in driving success.
“When it comes to talent, in today’s rapidly changing world, it’s not just about the employee’s skill set, but the ability to learn, be curious, adapt, and reinvent yourself.
“I believe in creating an environment where people feel safe to step out of their comfort zone, to experiment, to initiate and to grow. True success comes when everyone on the team feels that they are contributing to the collective success”.
Looking ahead, what are your business priorities for L’Oréal Israel?
“Our top priority is to continue to focus on providing the best products and beauty experiences to consumers. To this end, we will continue to drive innovation – in products, marketing, and technology. We plan to expand our product and brand offerings in the Israeli market, while strengthening collaborations with our various stakeholders, staying true to our sustainability values, and deepening our positive social impact.
“On the digital front, we will continue to invest heavily in data-driven insights, in the development of e-commerce channels and technological capabilities in the field of beauty while remaining committed to continue investing in the Israeli society and economy”.
As Elie Sagiv emphasizes, beauty is much more than aesthetics – it is an engine for change, resilience, and empowerment, and for a true connection between people.
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