Men and women both are increasingly becoming conscious about their appearances and are thus challenging the cosmetic industry. Due to this, there is a need for the cosmetic industry to reform itself continuously and rapidly, and has several dimensions to it today. The entire cosmetic industry value chain such as raw materials, ingredients, devices, accessories, packaging and formulations are all seeing a huge change in the recent years. Consumers are not only conscious about the visible effects that the products but are increasingly becoming selective and their purchase pattern is also seeing a change.
Technologies such as artificial intelligence (AI), IoT and wearables, smart devices have all changed the perception of cosmetics are being bought, applied and used completely. The impact of digital technologies on cosmetics have opened a horizon of opportunities, challenges and risks for both cosmetic brands and their distributors.
Artificial intelligence for real beauty
Consumers are expecting a high level of personalization which is a trending topic for all cosmetic brands. Data available through various channels are now being collected to make recommendations and develop products of consumer’s choice. Personalized skin care regimen, products and tips are shared with customers according to their skin type,
complexion, preferences and so on. This not only helps in product recommendations but also will help researchers develop new products based on the inputs provided by the users.
Proven Skincare uses machine learning to come up with personalized skincare regimens based on a customer’s unique skin type.
The company says that the recommended regimen is based on their Beauty Genome Project, a database of more than 8 million customer product reviews, 100,000 skincare products, and 20,000 ingredients, as well as information from scientific or peer-reviewed journal articles about skin and ingredients.
Immersive experiences and augmented reality
Computer vision, cognitive intelligence, deep learning, augmented reality, virtual reality have all found their place in the cosmetic space. Consumers can now try on different products literally in front of smart mirrors before purchasing them.
Want to check how much a product is really helping you? Modiface helps you in knowing the before and after changes of a product use using augmented reality. It helps in store sales and helps businesses to demonstrate their product effects too.
Impact of social media
Cosmetics brands have swiftly shifted their base from a product-based model to an experience-based model. Consumers look at it as an experience and brands are trying to meet the customer expectations. Due to online purchase of cosmetics and better data gathering & analysis, brand owners now have better access to customer views and trends. This is being used to send recommendations to customers.Big brands are already on it , for instance, , L’Oréal now sets aside 30% of its media spend to digital channels. Social media is not only helping in setting new trends but are driving new product formulations as well. It is a make or break situation for brands due to social media reviews on products, which are quite significant in driving the sales of products.
Big brands are all using various digital technologies to help in new product/ formulation development, reach right customers and improve sales. I’m eager to see what more will come up in the digital cosmetic space, are you?