Do beauty & wellness brands believe in tech?

The short answer is, yes. Beauty tech, which means integration of technology into the world of beauty, is central to many brands growth strategy.

Starting with the example of Beauty Genius, L’Oreal Paris’ artificial intelligence (AI) beauty consultant. It not only allows the brand’s approximately 100 million users to try on cosmetics virtually but also offers personalised skincare recommendations through diagnostic analysis.

Indian e-commerce major, Nykaa has been leveraging AI-powered virtual try-on tech ModiFace since 2021 to enhance the beauty shopping experience on its platform. A face tracker algorithm generates photorealistic results through an AI-enabled shade calibration, among other features.

Meanwhile, Perfect Corp’s AI-powered skin analysis software can identify 14 major skin concerns and is reportedly being used by 200+ global beauty retailers including the likes of Estee Lauder.

Beauty tech grabbing spotlight

As demand for tech-powered solutions continues to increase, the beauty tech market is expanding. According to The Business Research Company, the size of the beauty tech market is set to grow from $59.14 billion in 2023 to $68.78 billion 2024, touching $116.17 billion in 2028.

From augmented reality (AR) based virtual try-ons to streamlining manufacturing processes and managing inventory, tech is not only enhancing shopping experience but also making businesses more agile and efficient.

For instance, a big challenge for UAE-based fragrance brand Ajmal Perfumes was to replicate the in-store experience of buying fragrances that’s deeply rooted in sensory exploration and personal interaction in the digital realm.

“While virtual reality (VR) and AR based advancements offer promising solutions, achieving a genuinely immersive and sensory-rich online experience remains a priority and a challenge,” admitted Debdutta Bagchi, Head of IT, Ajmal Perfumes. “That’s why we’re continuously exploring innovative technologies and partnerships to bridge the online-offline gap to enhance the fragrance shopping experience, while preserving the authenticity and emotional resonance that define our brand.”

Meanwhile, cosmetics manufacturer and retailer Flormar successfully integrated enterprise resource planning (ERP) systems to streamline its manufacturing processes, manage inventory effectively and ensure seamless coordination between various departments, thereby enhancing its supply chain efficiency and reducing operational costs.

Commenting on the brand’s tech-based transformation efforts Sedat Firat, CDO, Flormar said, “We’ve developed a robust e-commerce platform, which has enabled us to increase our market share. On the other hand, we’ve adopted advanced point-of-sale systems in our physical stores to facilitate smooth transactions and gain real-time data on sales and inventory. Our investment in customer relationship management (CRM) tools and data analytics has enabled us to gain deeper insights into customer preferences and behaviour.”

Redefining CX

Looking ahead, Flormar has plans to invest in AI-driven tools to create personalised customer experiences. By leveraging cutting-edge technologies, the brand is not only enhancing operational efficiencies but also redefining CX across its sales channels.

“While expanding our capabilities in big data and analytics will enable us to derive actionable insights for product development, marketing strategies and operational efficiencies. This data-driven approach is critical for maintaining our competitive edge. At the same time, we will strengthen our cybersecurity measures to remain compliant with international regulations and protect our customers’ data from potential threats,” Firat shared.

Personalisation at the forefront

Around 72% of digital retailers in the US believe that AI-driven personalisation and Generative AI will affect their business in 2024, indicates eMarketer based on data from a Bolt survey.

Regional retailers like Ajmal are also betting big on AI-based personalisation. “We plan to invest significantly in AI-driven personalisation engines to harness the power of machine learning algorithms to analyse vast amount of customer data to deepen customer engagement, deliver hyper-personalised fragrance recommendations, increase conversion rates and foster long-term loyalty,” Bagchi revealed.

Some milestones already achieved by Ajmal include the launch of its state-of the-art e-commerce platform with features such as AI-powered fragrance recommendations and virtual try-ons and introduction of interactive digital kiosks and AR-based experiences in its flagship stores.

Tech for health

Moving on to the health & wellbeing space, Aster DM Healthcare has multiple tech-driven investments in the pipeline to stay at the forefront of health.

“Wellness over health is becoming the norm. This awareness will only increase in the future, driven by various wearable gadgets that provide data to help individuals stay fit and healthy,” observed Group CIO, Veneeth Purushotaman.

In this context, a good example is the launch of myAster super-app designed for patients. As part of future development, the app will seamlessly connect with wearables such as watches, rings and other devices to help monitor and track patient vitals. Using AI-enabled solutions, it will provide proactive nudges to patients to maintain their health.

“As industries and organisations mature, the technologies they deploy will also evolve,” Purushotaman opined. “Thus, the use of AI, Internet of Things (IoT), robotic process automation (RPA) and other solutions that integrate these technologies will be major gamechangers in the healthcare space.”

A peek into the future

In summation asked what the future of beauty will look like, here’s what Bagchi said, “The ‘beauty of the future’ will be holistic and inclusive, embracing diversity, sustainability and personalisation, with technology enhancing personal expression to empower individuals and celebrate cultural richness.”

While Purushotaman highlighted how technology will be used to elevate patient care. “Our industry will see a significant increase in the usage of IoT-based devices and embedded chip-based technologies, allowing care managers to analyse a person’s data and prepare customised plans for medication and more.”

Having said that, in healthcare, tech adoption tends to be slow because any new or emerging technology must be extensively tested to ensure that there is no false positive or negative. “There is no margin for error in healthcare, making it a barrier to deploying solutions quickly compared to other industries. Another barrier is finding the right partners who have the capability to work with these emerging technologies,” he explained.

Any conversation about the future would be incomplete without mentioning the need to operate sustainably. In this context Firat said that Formar will look to invest in technologies that support sustainable practices in manufacturing and supply chain management. “This not only aligns with global environmental standards but also meets the growing demand for eco-friendly products from our customers.”

Ajmal is also investing in technologies that support its sustainability goals, such as blockchain technology to ensure transparency around supply chain traceability.

This story is part of our ‘CIO Pulse & Perspectives’ series. Pick up the August edition of IMAGES RetailME Magazine to access the exclusive report featuring opinions and insights from 20+ regional retail technology leads.

Rupkatha B