The future of the beauty industry is now more beautiful than ever. With the help of technology, the beauty industry is now able to embrace the beauty of all races, skin tones, and body types. Technology seems to have successfully reshaped the standards of beauty industry dramatically – both in the way of how beauty products are distributed and how they are sold to customers. Big brands such as Estée Lauder, Sephora, and L’Oreal have embraced this digital revolution positively which resulted in higher traffic and higher revenue. In 2020, the global cosmetics market is estimated to reach $675 billion, with recent surveys suggesting that the average of women spends around $313 a month on her appearance, with men spending up to $244. Yes, the beauty industry is currently also targeting men for beauty products. This is thanks to the many insights and phenomena on the internet about how men and women equally need beauty products to enhance their quality in life.
The significant growth of the beauty industry does not come only from the product innovations itself, but also from digital marketing perspectives where strategies are being implemented to attract and retain customers. Estée Lauder, Sephora, and L’Oreal have invested in AR (Augmented Reality) and VR (Virtual Reality) to lead the market. Other brands have also implemented other digital trends to satisfy customers’ needs. The new key trends to raise sales in the beauty industry are listed here below:
- Personalization and AI
Each customer wants specific beauty products to suit and match their one-of-a-kind skin condition, skin undertone, look, and lifestyle. However, it is impractical to provide thousands of shades and benefits of beauty products without knowing what the customers need. Through AI, this problem can finally be solved. One of the examples of the use of AI is a custom-made foundation machine using a handheld colorimeter. A colorimeter is a type of digital scanner which uses a proprietary algorithm to choose from 20,000 different shades. The findings are then sent to a machine that mixes the foundation specifically for you.
- Virtual ‘try on’ apps
As beauty brands realized the tendency of people nowadays to shop online, they use AR to enhance each customer’s personal experience. Improvements in image recognition and face tracking tech are making these digital overlays more accurate. Through a smartphone, customers can virtually try on thousands of shades of lipsticks and eyeshadows, making sure that they are buying the perfect shade.
- YouTube videos
YouTube has changed how people see beauty products drastically through the availability of makeup tutorials and makeup review channels. Getting in on the YouTube action is now considered as marketing mandatory. Customers want a longer-format content that discusses what’s new and what’s trending in the beauty world. However, brands cannot just directly post their content without the help of beauty vloggers if they want to attract customers. Yes, using beauty vloggers and beauty influencers to promote brands is one of the most effective ways to compete in the beauty industry.
- Beauty influencers
Did you know that Kylie Jenner is now the world’s youngest self-made billionaire at just 21 years-old? This title came just three years and five months after her company, Kylie Cosmetics, was founded in November 2015. As the ultimate influencer, especially on Instagram, she successfully uses herself (not to forget her famous family, the Kardashians, as well) to introduce and promote her makeup range. Through her account, she proves that connecting with fans regularly and consistently on social media is an invaluable way of creating demand, urgency and strong brand identity.
To be concluded, customers crave for personal experience in the beauty industry. They are willing to pay more for a brand that provides personalization to some extent. Therefore, brands are now not only personalizing customer’s shopping experience, but also the products they intend to sell to customers. The result? Well, an even better revenue as reflected in the 2020 global cosmetics market. This essentially means that digitalization has brought positive impacts for the beauty industry.
Author: Fuji Muliawati (Content Strategist)