Elle Morris, Chief Marketing Officer, Olberding Brand Family03.27.23
When Covid-19 struck, the entire beauty industry had to pivot overnight; consumers went from trying products in-store to ensure shade matches, that products didn’t irritate their skin, to see the actual finish on the skin. Those options were stripped away from us, and we were forced to make purchases online.
For a while, many chose the safe option, which was reordering products and shades that we were familiar with. In the interim, beauty companies and retailers worked fervently to up their game in the digital arena, leveraging both artificial intelligence and virtual reality to remove the fear and guesswork in buying new beauty products in a digital-only environment. Social media apps such as Tik Tok, Instagram and Snap Chat got in on the action by creating various filters (including makeup and hairstyles) to help entertain their audiences through creating new makeup and hair looks.
The assistance of technology also enriches customer experience, personalization, and brand engagement. A recent study found that 92% of Gen Z consumers have interest in augmented reality during a shopping experience. Couture House Yves Saint Laurent offers three tools to try augmented reality within the comfort of one’s home – dress your lips for lipstick makeup, master your gaze for the eye, and face your style for the skin. Fenty, Avon, CoverGirl and others offer similar experiences.
The latest example by Prada Paradoxe shows how the barriers between reality and the digital field have erased – the brand asked its followers whether a fragrance could exist in a digital space, and they are invited to explore a multi-dimensional self and identity evolving constantly. The brand’s premise of multi-dimensionality lent itself to a short film starring Emma Watson and was premiered across digital channels globally.
The increasing demand for personalized beauty products establishes trends for the market. Epsilon research recently found that about 80% of clients would buy from brands offering personalized products; leading beauty brands leveraging this approach managed to increase their revenue by 15% and make marketing costs 30% more efficient. That's when artificial intelligence becomes invaluable.
Most often, the beauty and cosmetics market uses this advanced technology for:
As the beauty industry continues to integrate AI and VR into how it communicates with consumers as well as how it helps consumers visualize themselves in the products their favorite brands are selling, consumers will reap the benefits of the technology. They will be able to share their personal preferences more frequency and manufacturers will be able to respond to them based on the accrual of data from the AI platforms. Consumers also benefit by saving time and travel by being able to use these AI and VR tools at home to see how new products and shades will work for them. AI and VR are quickly changing the landscape and output of the industry. It will be exciting to see where technology will take us in the next five years.
About the Author:
Ms. Elenita (Elle) Morris is Chief Marketing Officer at Olberding Brand Family, stewards of consumer-packaged goods brands since 1919, partnering with brands on brand strategy and design, packaging, digital adaptation and pre-media and platemaking. She is a recognized consumer packaged goods brand design thought-leader with particular expertise in beauty, haircare and skincare.
For a while, many chose the safe option, which was reordering products and shades that we were familiar with. In the interim, beauty companies and retailers worked fervently to up their game in the digital arena, leveraging both artificial intelligence and virtual reality to remove the fear and guesswork in buying new beauty products in a digital-only environment. Social media apps such as Tik Tok, Instagram and Snap Chat got in on the action by creating various filters (including makeup and hairstyles) to help entertain their audiences through creating new makeup and hair looks.
An Enriched Experience
In 2023, the connection between reality and the digital universe now allows consumers to express themselves in multiple ways. Besides super human-like filters (poreless skin, high cheekbones, catlike eyes, big eyelashes, all on a young looking face – a look dubbed the “Instagram Face”), the digital world permits, even encourages people to be different and free. Shopping has become infinitely easier and inspired by virtual try-on, widely developed in the beauty sector to visualize a product on oneself.The assistance of technology also enriches customer experience, personalization, and brand engagement. A recent study found that 92% of Gen Z consumers have interest in augmented reality during a shopping experience. Couture House Yves Saint Laurent offers three tools to try augmented reality within the comfort of one’s home – dress your lips for lipstick makeup, master your gaze for the eye, and face your style for the skin. Fenty, Avon, CoverGirl and others offer similar experiences.
Multiple Touchpoints
Currently, many brands proliferate through multiple touchpoints during product launches, with virtual popups, immersive screens and augmented reality filters. This tactic is used to expand the brand’s fame and reach as well as to create a link with consumers.The latest example by Prada Paradoxe shows how the barriers between reality and the digital field have erased – the brand asked its followers whether a fragrance could exist in a digital space, and they are invited to explore a multi-dimensional self and identity evolving constantly. The brand’s premise of multi-dimensionality lent itself to a short film starring Emma Watson and was premiered across digital channels globally.
AI and VR
Let’s touch on artificial intelligence and virtual reality now; both have become important elements of beauty retail's growth. Let's examine how retailers and brands adopt AI to add more value to their services and offer omnichannel customer experience.The increasing demand for personalized beauty products establishes trends for the market. Epsilon research recently found that about 80% of clients would buy from brands offering personalized products; leading beauty brands leveraging this approach managed to increase their revenue by 15% and make marketing costs 30% more efficient. That's when artificial intelligence becomes invaluable.
Most often, the beauty and cosmetics market uses this advanced technology for:
- Product creation (e.g., AI-based beauty devices)
- As an additional platform for consumer communication, promotion, and sales
- As an analytical tool for creating a more personalized shopping experience and inventory management.
A Burgeoning Market
The market is starting to burgeon with beauty brands creating AI-powered smart devices for skincare and makeup, such as the Opte Wand from P&G and Perso by L'Oréal. Conversely, if this trend is more typical for business giants and startups that develop products from scratch or buy ready-made technological solutions, the application of artificial intelligence by existing beauty companies and retailers is a more extensive and fast way to integrate AI into product promotion processes and as an additional channel of communication with customers.As the beauty industry continues to integrate AI and VR into how it communicates with consumers as well as how it helps consumers visualize themselves in the products their favorite brands are selling, consumers will reap the benefits of the technology. They will be able to share their personal preferences more frequency and manufacturers will be able to respond to them based on the accrual of data from the AI platforms. Consumers also benefit by saving time and travel by being able to use these AI and VR tools at home to see how new products and shades will work for them. AI and VR are quickly changing the landscape and output of the industry. It will be exciting to see where technology will take us in the next five years.
About the Author:
Ms. Elenita (Elle) Morris is Chief Marketing Officer at Olberding Brand Family, stewards of consumer-packaged goods brands since 1919, partnering with brands on brand strategy and design, packaging, digital adaptation and pre-media and platemaking. She is a recognized consumer packaged goods brand design thought-leader with particular expertise in beauty, haircare and skincare.