How beauty and personal care biggies are turning to technology to offer delightful, personalised and sustainable solutions and experiences and what’s driving this shift
Bengaluru: Flipkart has launched a virtual try on feature for beauty products. Tata Group will open 20 beauty tech shops where they will have virtual makeup stations and digital skin testing. Sugar Cosmetics has invested in customer analytics technologies and is enhancing the customer experience through augmented reality. Myntra Beauty plans to introduce a product finder, a skin analyzer, and virtual try on. Nykaa will launch ModiFace – an Al-powered technology for virtual try-on. These are just a few examples of how the country’s beauty industry is aggressively embracing technology to not just improve operations but also engage customers.
“Over the past few years, the beauty and personal care industry has undergone a significant transformation, driven by rapid advancements in technology,” said Nitin Passi, managing director of Lotus Herbals, a natural cosmetic company that sells over 500 skincare, haircare, suncare, and make-up products.
Passi cited an article that stated the natural and organic beauty industry is expected to grow at a CAGR of 8.9% from 2020 to 2027.
What’s giving beauty a boost
“The last few years have seen a revolution in the beauty and personal care category, with increased demand, consumption and spending. Digital transformation and a plethora of options across segments have resulted in a booming demand for cosmetics in India, which is no longer restricted to urban centers, but equally powerful in rural areas,” said Jasmin Gohil, chief technology officer of Sugar Cosmetics.
The pandemic has accelerated technology-driven change. The rapid growth of multi-channel sales platforms and e-commerce has also fundamentally changed the way cosmetics are sold to consumers.
“Retail has expanded dramatically in the online space, a lot of new and innovative businesses have mushroomed to fill the gap in the market. Regardless of the setback people faced due to the pandemic, the beauty industry, albeit at a slightly slower pace, showcased resilience,” added Gohil.
The change in consumer behavior is another factor that has led to the upgrade of technology.
Consumer angle
“Consumers are more informed about the latest products and trends, and they have higher expectations for the products they buy. Technology has also allowed for more personalized products and marketing strategies, which has created more opportunities for brands to connect with their customers,” said Sudeep Bansal, vice president- growth at WOW Skin Science, a beauty and wellness brand based in Karnataka.
According to Prakash Gurumoorthy, general manager of EMEA and APAC at SaaS (software-as-a-service) digital commerce platform VTEX, “Consumers want to spend more time with brands they trust and they are much more demanding and are searching for additional information on the website, product pages, and at checkouts.”
He says that retailers and brands are investing to provide customers with greater transparency in order to increase trust and customer loyalty. “The leading brands are aligning people, processes, and technology to proactively provide customers with more information about their brand and products pre- and post-purchase,” Gurumoorthy added.
Players in the beauty, personal care and cosmetics industry have also adopted technology at a faster rate as consumers embrace the trend.
“There has been a rise in demand for personalized beauty products and services, as consumers seek products that cater to their unique needs and preferences,” said Aanchal Malhotra Gupta, co-founder of amág Beauty.
“Consumers are increasingly seeking convenience, personalisation, and innovation of new beauty products and services. The advent of social media and digital influencers has also played a significant role in shaping consumer expectations and driving demand for new beauty trends and technologies,” added Gupta.
Beauty tech trends:
Virtual try-on Users can try products on digitally. Alice Chang founded the company, which uses an advanced face tracking algorithm via augmented reality to detect facial features and apply virtual cosmetics. Brands including Sephora, L’Oreal, Estee Lauder, Chanel and Revlon are some of the international pioneers who introduced virtual try-on to consumers.
Smart mirror: Smart mirrors feature a high resolution camera that analyzes the skin in order to make skincare recommendations. This voice-enabled intelligent beauty mirror is a brainchild of Taiwan’s New Kinpo Group. Cosmetic brands like MAC, YSL, Sephora and other giants used smart makeup mirrors to reach a wider audience and now this technology can also be seen in Indian beauty retail stores such as Reliance Retail’s recently launched Tira.
Virtual artist visualization: Modiface is an organization that makes virtual reality beauty applications. They introduced the virtual artist in 2016, a digital makeup guidebook to help consumers learn how to apply makeup.
Printing makeup By adjusting pigments and substrates compatible with the printer, users can produce and customize products from home. Mink, (a portmanteau for ‘makeup’ and ‘ink’) launched in 2014 by Harvard Business School graduate Grace Choi, lays claim to the title of world’s first portable makeup-producing printer.
Automatic hair and Skin Analyzer: This tech involves a hyper-customized arrangement of associated gadgets that provides information about the client’s hair and skin with concrete logical solutions. This year, Myntra Beauty became the first e-commerce player to introduce hair and skin analyzer, according to Anmol Sikka, director – BPC at Myntra.
Smart sensors, IOT devices and other smart devices These sensors collect real-time information like skin hydration, UV exposure and skin health and create customized products.
Looking into the Future
“The future of the beauty industry is likely to be characterized by continued innovation and a focus on providing personalized, data-driven solutions to consumers’ beauty and personal care needs,” said Passi from Lotus Herbals.
Beauty brands will be forced to adopt AI because of the demand for better and newer beauty services.
“The beauty industry has seen an increase in the use of AI and machine learning, leading to the development of innovative products and services. The global AI in the beauty market size is expected to reach $14.8 billion by 2028, growing at a CAGR of 24.6% from 2021 to 2028,” added Passi
According to experts, in the future, consumers should expect brands to adopt a sustainable manufacturing and delivery process through technology. This will make the entire process more clean and safer.
“Consumers are more aware of the impact of their choices on the environment, and they want to make choices that align with their values. This will lead to an increase in demand for products that are made using sustainable ingredients, are cruelty-free, and have environmentally friendly packaging with the help of technology,” said Bansal from WOW Skin Science.