L’Oréal’s first venture capital fund acquires minority stake in Japanese personalized beauty start-up Sparty
24 May 2022 --- Beauty giant L’Oréal’s corporate venture capital fund, Business Opportunities for L’Oréal Development (BOLD), has acquired a minority investment in Sparty, a Japanese beauty start-up.
This venture capital investment is L’Oréal’s first in Japan.
“Japan is one of the most sophisticated and influential beauty markets,” says Jean-Pierre Charriton, CEO at L’Oréal Japan.
BOLD is interested in ten areas such as sustainable beauty, personalized beauty, clean natural beauty, health and wellness, new aging solutions, beauty for new generations, beauty tech, multicultural beauty and green science.
D2C business in Japan
Sparty is based in Tokyo and has created a direct-to-consumer (D2C) business model based on personalized beauty with other brands like Medulla in haircare and Hotaru in skincare.
“This unique business model enables consumers in Japan to enjoy both a personalized product and a personalized consumer experience,” shares L’Oréal.
This venture capital investment is L’Oréal’s first in Japan.
“In Japan, personalized consumer experiences are highly valued, and we are seeing new trends and innovations when it comes to personalization, especially in beauty,” shares Charriton.
Sparty is described as a pioneer in personalized beauty and a game-changer in Japan’s growing D2C market.
“With Sparty’s proven track record in personalization and L’Oréal’s leadership in the worldwide beauty market, we are confident that we will be able to embark on the next chapter of our growth journey and scale our business in Japan and overseas,” adds Yosuke Miyama, Founder and CEO at Sparty.
Eyeing personalization potential
With technological advancement enabling improved personalization, a Swiss beauty-tech brand Réduit launched Réduit Boost – a NASA-powered innovative technology to US markets. The personalization device identifies active ingredients within skincare products to push the components deeper into the skin where it is required.
Personalized digital company Revieve previously designed an AI Makeup Advisor experience through a collaboration with Shiseido. The AI Makeup Advisor helps women find a make-up routine customized to their specific beauty needs.
L’Oréal previously partnered with bio-informatics and technology company Emotiv to create a headset device for helping consumers decide on their personalized fragrance. The headset uses machine learning algorithms that interpret electroencephalography as consumers experience scent families, allowing for accurate sensing and monitoring of preferences.
Furthermore, Pour Moi received a patent for its “one-step method” of alternating Climate-Smart Day Creams to pair with climate and weather changes. It believes that choosing moisturizers by location instead of one standard maximizes hydration and anti-aging results. Similarly, Prose and BreezoMeter developed personalized hair NPD for geo aggressors based on site.
In January, L’Oréal created Coloright, a hair dyeing product that harnessed AI to offer new personalization levels, allowing individuals to try on various hair dyes virtually.
Edited by Venya Patel
