Personalization rules the retail industry. To accomplish it, leading companies are experimenting with digital technologies that provide a highly customized and entertaining shopping experience, says Dr. Taleb Alashkar, CTO and Co-founder at Algoface.
Innovation is constantly changing consumer behavior. At the dismay of many retailers, providing a quality product is now simply not enough. In fact, many agree that the next step for retail, and especially the beauty industry, is to incorporate digital technologies, such as augmented reality, virtual reality, and facial recognition. There is a great opportunity for cosmetics, as these technologies can personalize the beauty experience while keeping the customer tapped into a particular brand’s ecosystem.
In 2018, the beauty manufacturer Coty created a VR experience to help users pick perfume, while its Clairol brand partnered with Snapchat to allow customers to try on different hair colors. We are now seeing a marriage between tech and beauty take place. It unfolds in the enhanced personalization for beauty products and it is likely one that will flourish.
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Customer in the driver’s seat
Let’s face it – beauty is perhaps the most personal of all industries. Every individual has different needs and preferences and is often willing to invest significantly in finding the optimal product. Companies are not insensitive to these realities: Some of them are pioneering customized grooming products including shampoos or makeup accessories. Others get even more creative; for instance, L’Oréal offers a personal battery-free sunscreen sensor.
To provide the perfect fit for everyone, Sephora sells 239 different kinds of foundation. While each has unique characteristics, such a huge number of options can discourage decision making. The brand has navigated this by leveraging digital technologies. Its ‘Visual Artist’ tool scans your face and lets you test different products and looks. Such a hyper-personalized recommendation engine lets customers pick the products easily but also enables better interaction with the brand.
But that’s not the only thing that has made Sephora the crowned innovator of the beauty industry. While its personalized capabilities revolutionize cosmetics, it has also implemented interactive chat bots and tutorials that unfold on individual customer’s faces. This is a smart move, since 44% of customers tend to become repeat buyers after a personalized shopping experience.
We are witnessing a major shift: to succeed, companies need to throw their old product-oriented business model behind and instead embrace an experience-based approach. With the boom of social media, consumers are the ones dictating trends. Utilizing technologies to provide guidance and entertainment pays off: Not only can this grow satisfaction rates, it also boosts profits exponentially. When shopping, 77% of consumers favour personalized services.
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How do companies personalize their products? While strategies differ, they have something in common: the use of technology. By closely analysing face features and working together, companies can construct and analyse the complex intelligence image of each customer.
Clinique recently launched a virtual reality experience in its New York store. It enables customers to discover and try out a new product line by personalized virtual testing and quizzes, resulting in the recommendation of one of 15 moisturizes that come in different textures.
Rimmel London designed the Get The Look augmented reality app in 2018. After a user uploads their photograph, it allows them to pick a celebrity or influencer look that is matched with corresponding brand’s products, which are then displayed on their face.
The cosmetics industry is now striving for inclusivity, recognizing diverse demographics, sizes, shapes, and ages. When Rihanna launched her Fenty beauty line, there were 40 different shades and the darkest sold out the fastest. Tailoring the experience for each customer, artificial intelligence and facial recognition can advance inclusivity further.
Using digitalization, brands can establish a closer relationship with population segments that are often overlooked. Because in ideal cases, the software could be programmed to recommend products not only based on skin type or hair color, but also on customer’s personal preferences, including religion (halal products for Muslim customers), ethics (natural or cruelty-free) or missing specific allergens.
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Online shopping for the win
Another circumstance playing in the cards of beauty retailers is the rise of online shopping. And rightly so: The online experience caters to many new opportunities. Social media has disrupted the way brands communicate with their audience, favouring the rise of influencers and reviews. This further fosters reputation and relationship building.
According to Ukonwa Ojo, the VP of CoverGirl, “New technologies make it easy for beauty lovers to access trends, looks, content and experiences. Shopping behaviours have shifted towards e-commerce and specialty versus traditional bricks and mortar.” Therefore, the use of tools such as digital kits, recommendation algorithms, subscriptions, or exclusive access provision, becomes fundamental.
As more and more companies see the promise of the technological development in the beauty industry, the question is not who embraces innovation anymore, but rather who does it better.