L’Oréal Paris has partnered with United Talent Agency (UTA) to launch a non-fungible token (NFT) collection centered around initiatives that empower women. Bidding for the assets takes place on OpenSea.
The initiative is part of a marketing strategy for L’Oreal’s new lipstick collection, ‘Reds of Worth’ by Colour Riche. The NFT collection features five different pieces, each inspired by the color Red and designed by a female digital artist. All the proceeds from the initial sales will go towards the artists that designed the pieces. Meanwhile, 50% of the transaction value of sales in the secondary market will go towards L’Oréal’s philanthropic campaign, Women of Worth, which supports everyday women making a difference in their communities.
Like most other technology based industries, the NFT space is male dominated, not only on the supply side but also on the consumer side. A report from ArtTactic showed that only 16% of artists in the NFT art market are female and that women consumers contribute to only 5% of the total sales. For L’Oréal, a brand with a heavily female audience, entering the NFT space with an initiative that supports and welcomes female participation can help promote women in technology and cast a halo over Reds of Worth lipstick.
Outside of sales numbers, the initiative brings some much needed attention to the disparity of consumer demographics in NFTs. These numbers highlight the scope of opportunities for growth for other NFT initiatives that target women.
“Through this program, we want to bring attention to the gender disparity in the NFT space and hope that we can shine a light on the women already working within the sector, while attracting more women artists and buyers,” saidMaude Brunschwig, SVP of Marketing, L’Oréal Paris USA. “As a brand that is deeply committed to empowerment and inclusion, we are proud to build on our mission of supporting women and giving these artists a global platform to showcase their work.”
Another opportunity for L’Oréal in the blockchain space is with 3D NFTs. In 2018 the company acquired an augmented reality filter company. Last year, it launched a “virtual makeup” selfie filter line that enabled users to digitally “try on” eye makeup, lipsticks, and hair products. Similarly, L’Oréal could potentially launch 3D versions of these products where consumers can buy the makeup as an NFT in the metaverse for their avatars.
While men can certainly appreciate the makeup and purchase these products for their avatars, the bigger consumer base for these NFTs may be women.
Meanwhile, other beauty brands using NFTs in their marketing efforts include Clinique, which used digital assets tied to their loyalty program. Outside of beauty, PepsiCo, Bacardi, and Mastercard all launched NFT-based marketing campaigns.