L'Oréal : Investing in video

An effective video showcases private shareholders explaining why they invested.

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The feature

The ‘Shareholders’ Corner’, a set of pages for private investors on L’Oréal’s corporate website, features a two-minute video featuring three individuals who own shares in the French cosmetics maker. The interviewees – an entrepreneur, a retired police officer and a retired doctor – respond to the question ‘Why did you invest in L’Oréal?’

Their answers (in French with English subtitles) are clear and directly relevant to typical private investor concerns: ‘I am reassured by the regular acquisition of new brands,’ says one. ‘A defensive stock that is safe and secure,’ says another. Over the course of the video many of the messages the company would wish to convey to prospective investors are covered: stability, a global leader in cosmetics, frequent dividend, a commitment to research and development, etc. 

The takeaway

L’Oréal’s shareholder interviews are unique and effective, and this approach to individual investor communication stands out even among other French companies, which are known for treating their private shareholders very well.

The video, which replaced a less powerful video with IR professionals discussing the company, appears among other similarly exceptional private investor material on the L’Oréal site (See this week's Commentary).

Much like employee interviews that are intended to give a behind-the-scenes view to jobseekers, shareholder testimonials – when done as professionally and cleverly as L’Oréal – are a powerful way to communicate a positive view of the company to individuals.

First published 12 November, 2014
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