Global Connected Beauty Market Outlook
Consumer trends and behaviors are changing rapidly with advances in technology. Technology has completely taken over all aspects of business. The beauty industry has come as a surprise elemen in consumer electronics.
Currently, consumers interested in beauty care want to check the power of technology in providing a better personal experience and lead to feel a connection. Apart from just improving looks, present date apps and devices can also allow the connected consumer to self-diagnose beauty issues, and respond accordingly to imperfections. Since everything is available online, consumers highly prefer to do preliminary research about the choice of beauty products in-detail and then experience the product live in store. This is how the buying and decision making process has transformed.
Generation C isn’t the next up-and-coming demographic, it’s a new force in consumer culture. Gen C is a mindset defined by characteristics beyond age, race, or even gender: this consumer cares deeply about creation, curation, connection, and community.
AI and chat-bots have taken a pivotal role in the beauty and personal care industry. AI and chat-bots are a powerful technology, that not only changes the consumer engagement but also helps in analyzing the skin types, consumers’ preferences etc. For example, L’Oreal has embarked on the AI journey with the launch of artificial intelligence-powered Facebook Messenger bot to produce services for its beauty brands and learn more about consumers.
Global Connected Beauty Market: Market Dynamics
Drivers for Connected Beauty Market
Looks and appearance has become a “no-compromise” zone for both men and women all over the globe. People are nowadays very conscious of the way they look and appear; the triggers being social media influence and adoption of western culture. Beauty brands are now appealing to their users through social media and beauty influencers/celebrities. As a result, people are looking forward to customized beauty solutions. As for example, L’Oréal presented Lancome’s Le Teint Particulier, custom made Foundation, a patented technology that precisely matched an individual’s unique skin tone to create customized foundation at point of sale (POS), offering automatic customization.
High-tech is taking the lion’s share in the beauty industry. Beyond mere good looks, today’s gadgets can also empower the connected consumer to self-diagnose beauty issues, and respond accordingly to correct imperfections. In 2017, Samsung Electronics unveiled two products: its S-Skin, a home skincare and analysis solution designed to reduce the time and cost associated with professional dermatological care; and Lumini, a portable device that examines the inner skin to identify and also prevent skin problems.
Trends for Connected Beauty Market
Personalization is the new fad and beauty brands are taking lead to provide a better experience to their users. Cosmetics companies are analyzing consumer behavior and thereafter, providing custom-made products to the users.
One of the most interesting paradoxes of the connected consumer is that they wield unprecedented amounts of power when it comes to their purchasing choices. Beauty brands are streamlining their purchasing experiences by offering “try-before-you-buy” options, free shipping, and also free returns. Basically, companies are opting for an all round consumer-centric approach.
Brands are building connected beauty systems in order to personalize skincare treatments, gather behavioral data on shoppers, and encourage brand loyalty within the ecosystem.
One of the latest beauty tech trends is where wearing real cosmetics is not needed to make a purchase decision. Taking inspiration from the AR filters on Snapchat and Instagram, "e-make up" artists help in downloading odd make-up looks to enhance customers’ digital self.
Opportunities for Connected Beauty Market
Connected beauty also implies embracing transparency, relationship with the influencers, hands-on product experience, and the need for power and convenience. As part of this trend, beauty companies that make samples available or that allow users to upload pictures of themselves to virtually “try on” different shades of makeup, will get much farther with the connected consumer than those that remain wedded to the old retail models.
Smart beauty devices that provide brand-agnostic product recommendations could more broadly appeal to consumers in the future.
Challenges Connected Beauty Market
Affordability is also a major question, as most smart beauty devices are being positioned as premium products. For example, Foreo’s device prices range from around $50 to just under $300 — with even more luxe options priced between $6,500 to $8,800.
While beauty is a hot category right now, consumer hardware is a notoriously tough space, often due to a lack of consumer demand, high burn rate, product strategy errors, and more.
The spike in mobile apps, skin scanners, and smart mirrors also begs the question of whether consumers are really benefiting from more beauty tech. With greater adoption comes a need for beauty tech companies to consider the built-in system biases that could be impacting their end consumers.
Global Connected Beauty Market: Market Segmentation
On the basis of type, the global connected beauty market has been segmented as –
On the basis of sales channel, the connected beauty market has been segmented as –
Global Connected Beauty Market: Key Players
Private beauty brands are experiencing growth faster than the total US beauty industry, with new brands blooming within the sector. However, big beauty companies are giving a stiff competition. From a past few years, there’s been a notable increase in both incubation and M&A activity from the major stakeholders of beauty industry. L’Oreal provides a variety of internal initiatives to support its commitment to new brands and technologies. An example of which is the Open Innovation Program, the Women in Digital Next Generation program, and the launch of corporate venture capital fund L’Oreal BOLD.
Connected Beauty Market: Regional Outlook
The surge in the consumption of beauty products in India is giving rise to new trends, which are presenting significant opportunities for cosmetic companies and brands. However, unique concerns and culture of Indian consumers have left gaps in the market, creating huge potential for further product development.