Mercado Libre, L’Oréal Boost AI Beauty Partnership in Mexico

Mercado Libre and L’Oréal Group are expanding their partnership in Mexico’s digital beauty sector, integrating artificial intelligence and augmented reality tools to enhance the online shopping experience and boost sales.

The collaboration includes technologies such as virtual try-on (VTO) features, allowing users to test makeup products using AR and live shopping events hosted by influencers and beauty experts. These tools aim to replicate in-store experiences and have already reached over half of Mexico’s digital beauty users. According to company data, brands using these features have seen sales increase by up to 30%.

“Today, marketplaces are not just sales channels, but spaces for discovery, education, and inspiration,” said Luis Pedraza, Commercial Director, Mercado Libre Mexico. He noted that technology-driven features not only improve the user experience but also reduce return rates and increase conversions.

The initiative comes amid continued e-commerce growth in Mexico. The Mexican Association of Online Sales (AMVO) reported that the country’s retail e-commerce market reached MX$790 billion in 2024. The beauty category remains one of the most dynamic segments, driven in part by a younger population: 25% of Mexicans are between the ages of 15 and 29.

L’Oréal has been part of the Mercado Libre ecosystem since 2020, with over 20 of its brands now available on the platform. Earlier this year, it launched its luxury portfolio on the marketplace. The latest phase of the alliance will roll out under the campaign “Date Belleza: Belleza a un click,” integrating AI, data analytics, and interactive tools.

As part of the campaign, Mercado Libre will host two live shopping events on Aug. 13 and 19 focused on skincare, makeup, and haircare, featuring expert-led content in real time. The companies will also introduce “Mystery Boxes,” a promotion offering surprise products with discounts of up to 50%.

Mercado Libre reports more than 10 million daily active users and an average beauty category order value of MX$350, with over 50 million units sold annually.