Redefining Cosmetic Industry Standards with Hyper-Personalization
As consumer demands and preferences become more classified, the era of the “one-size-fits-all” approach to beauty products is coming to an end. Global cosmetic brands like Prose, L’Oreal SkinCeuticals, Optune, etc, have already adopted hyper-personalization in their regimes.
A recent study highlights that 72% of consumers express a willingness to pay a premium for personalized cosmetic products, underscoring the growing demand for this tailored approach.
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Hyper-personalization is closely linked to three forefront technologies, i.e., Meta-verse, Artificial Intelligence (AI), and Augmented Reality (AR). Let’s take a look at them one by one –
1. Metaverse Introducing Virtual Try-On Experience for Makeup and Cosmetic Products
As virtual and augmented realities become more immersive and lifelike, the metaverse provides opportunities for cosmetics companies to research, develop, and test new products in virtual environments.
For R&D teams, the metaverse enables rapid prototyping and validation of new formulations, packaging ideas, and visual concepts without expensive physical production. Cosmetics brands can create digital twins of products quickly and cost-effectively, using CGI tools to model exact textures, colors, and effects on virtual skin and hair. This allows for more iterative design approaches and flexibility since the variables can be digitally changed and adapted much faster.
Brands are beginning to establish an early presence, visibility, and reputation in metaverse spaces like gaming worlds and virtual malls.
L’Oreal recently acquired Modiface, which produces virtual make-up filters for use in video conferences and selfies. Such moves signal how the metaverse can drive marketing and allow trying on products digitally.
Some significant collaborations within Metaverse –
The Sandbox X POC X Nyx Professional Makeup
In June 2022, Nyx, the cosmetics subsidiary of L’Oréal, collaborated with The Sandbox metaverse (an online gaming platform) and the blockchain lab People of Crypto (POC) to introduce an avatar collection featuring diverse traits, including various color shades, ethnicities, sexual orientations, gender identifications, and different makeup looks.
Givenchy Parfums X Roblox
In June 2022, French fashion and perfume house Givenchy Parfums collaborated with the Swedish game developer The Gang and launched a beauty house on Roblox’s global online metaverse platform. Givenchy’s immersive world includes different virtual areas inspired by the brand’s heritage. Users can also engage with digital make-up stations, photo booths, and a swimming pool.
Sunsilk X Roblox
Hair care brand Sunsilk came up with Sunsilk City on the gaming platform Roblox. It was launched to encourage participation in female gamers. The game featured Jessica Lakshmi, who is a Mexico-based bio-pharmaceutical chemist and gamer, as an avatar.
The game also featured some mini-games to inspire female gamers, like Sidewalk Superstars, which encourages players to prioritize education over house chores, and another game, Blow Them Away, which lets the gamers fight away toxic phrases that are used for women using a virtual hair dryer. It also features House of Skills to equip gamers with tangible real-world skills using 20 free online courses in partnership with the learning platform Udemy.
L’Oréal Professionnel X Wunderman Thompson
L’Oréal Professionnel was the first hair brand to create digital hairstyles in the metaverse in November 2022. Recently, L’Oréal Professionnel teamed up with Wunderman Thompson, a creative agency, to bring virtual hair products into the metaverse with Gravitas, available on multiple platforms.
Following their initial success on Ready Player Me, these virtual products will now be available on Robox and Zepeto, aiming to reach over 234 million users.
Shiseido X Cult
In February 2023, Shiseido partnered with Cult, a UK-based Web3 agency, to introduce #AliveWithBeauty—a campaign revealing a limited edition series of 150 NFTs (crypto assets). This initiative provides exclusive NFT ownership and entry into Shiseido’s community, enabling enthusiasts to access rewards and foster a deeper connection with the brand.
Mugler X Marc Tudisco
In February 2023, the French fashion brand Mugler collaborated with Marc Tudisco, a digital 3D artist, to unveil “We Are All Angel”—a collection featuring 300 digital art pieces crafted to commemorate the 30th anniversary of the brand’s Angel fragrance.
2. Artificial Intelligence (AI), your personal beauty assistant
AI algorithms can analyze vast quantities of past data on ingredients, formulations, and consumer preferences to predict optimal combinations and identify untapped market opportunities with high success potential. By processing cumbersome experimental data faster, AI assists scientists in determining effective formulations quicker.
For example – By partnering with Perso, an AI-powered mobile app, L’Oreal offers personalized lipstick and foundation shade recommendations based on users’ skin characteristics. Through analyzing skin tone, undertones, texture, moisture levels, and facial features, Perso generates tailored product profiles with precise shade matches from L’Oreal’s extensive product line.
By embracing AI-driven personalization, L’Oreal enhances consumer satisfaction and promotes diversity in cosmetic development while reducing product returns.
Startups working within artificial intelligence –
BASE
UK-based startup BASE develops personalized cosmetics. It uses natural and science-backed ingredients to create formulas suitable for the customer’s skin type. The startup combines deep machine learning and data analysis to offer bespoke, fragrance-free, sustainable, and vegan personalized skincare products. Moreover, it minimizes ingredient wastage by forecasting inventory needs.
PerfumeTech
Slovenian startup PerfumeTech makes smart perfume bottles that allow customers to apply perfume with a touch trigger. Controlled via a mobile app, the perfume bottles allow the customers to adjust the aroma or the mist level. In addition, this enables brands to track usage and offer new bottles when the previous ones run out.
MISTRIX
Israeli startup MISTRIX develops a mobile app for virtual makeup shopping. After uploading the makeup look pictures, its AI-based algorithm allows customers to wear the makeup digitally. Using AR technology, it visualizes the looks on the customer’s face. It then recommends a set of products for purchase to customers. The virtual makeup experience takes the hassle out of the shopping and provides customers with the exact looks they want.
Some significant collaborations within Artificial Intelligence –
- Ulta Beauty X Haut.AI
In March 2022, Ulta Beauty, a leading beauty retailer in the US, partnered with Haut.AI, a start-up dealing with R&D of AI-based tools for the beauty industry to co-create a personalized artificial intelligence engine for skin health and beauty. The engine not only analyzes the customer’s skin needs but also provides tailored recommendations based on user preference.
- AmorePacific X Asleep
In October 2022, beauty brand AmorePacific partnered with AI-based start-up Asleep to verify the performance of skincare products capable of helping users sleep properly. Asleep has a Wi-Fi-based device that measures the respiratory rate and how much a user tosses and turns in bed.
The WiFi signal fluctuates when a person breathes and detects changes in breathing. Users can get results through an app by putting smartphones within a meter (39 inches) of their bed. Asleep also has a patent application for this technology.
- Perfect Corp X Valmont
In January 2023, the tech solution provider Perfect Corp partnered with luxury cosmetics brand Valmont to help consumers in more than 50 countries get a detailed skin analysis and a personalized beauty routine in seconds using the AI tool.
3. Augmented Reality (AR) try-ons remove the guesswork from choosing makeup products
Augmented Reality elevates personalization by immersing users in virtual try-ons. AR technology overlays these products onto your digital image, providing a lifelike preview of their real-world appearance. Brands such as Sephora and L’Oréal are capitalizing on AR for virtual makeovers.
Virtual try-ons eliminate guesswork and minimize the risk of purchasing unsuitable products, ultimately enhancing customer satisfaction.
Interest in AR among consumers is steadily increasing, with 66% considering it a crucial feature when making purchasing decisions. Many prefer visualizing how a product integrates into their daily lives before committing to online purchases.
Startups working within augmented reality –
- GlamAR
| Website | https://www.glamar.io/ |
| Founder | Harsh Shah, Farooq Adam, Sreeraman Mohan Girija |
| Founding Year | 2020 |
| Technology | Provider of an augmented reality makeup solution |
Indian startup GlamAR offers a virtual makeup try-on platform. The platform enables virtual trials of products ranging from lipstick and eyeliner to eyeshadow and blush, configuring shades and color intensity. It allows customers to make faster purchase decisions, thereby increasing engagement.
Additionally, the startup is developing a virtual mirror that provides customers with an in-store contactless try-on experience. The startup’s solutions boost marketing and sales for cosmetics brands.
- ForYou
| Website | https://for-you.app/ |
| Founder | Kirill Tupikou |
| Founding Year | 2021 |
| Technology | Provider of an augmented reality platform for an interactive guide for customized skincare routine |
UK-based startup ForYou develops a personal skincare routine app. It uses AR to investigate skin type and wrinkles. It then uses big data & AI to personalize the skincare routine depending on the skin and face type and allows tracking progress. This allows consumers to combine facial massage, anti-aging skincare, and lifting exercises for better results. The startup’s solution uses immersive technology to create personalized skincare routines.
Some significant collaborations within augmented reality –
The world’s leading beauty and fashion tech provider, Perfect Corp, has collaborated with many leading beauty and fashion brands and other industry partners to provide AR-based solutions for their customers. Some of their collaborations include-
- Parfums Christian Dior
In June 2023, Perfect Corp partnered with Parfums Christian Dior, a renowned luxury fragrance brand, for a live online makeup consultation service. This service uses AR technology to provide customers with a virtual preview of products, enabling them to make informed purchase decisions from their homes.
- Walmart
In October 2023, Perfect Corp collaborated with the world’s largest retailer, Walmart, to launch an innovative virtual makeup try-on experience via the Walmart iOS app. This feature enabled Walmart customers to experiment with various makeup products, including blush, lip color, eye shadow, and bronzer, all within the app, aiding them in discovering their ideal shades.
Future Outlook
By using advanced technology to analyze customer data, companies can create products uniquely tailored to an individual’s needs and preferences. This trend leads to increasing customer satisfaction, loyalty, and sales while enhancing brand image and reputation.
Hyper-personalization, powered by AI and AR, is setting a new standard in the beauty industry. From personalized product recommendations to virtual try-ons, technology is making beauty routines more personalized than ever.
As technology continues to advance, this trend will likely become even more prevalent, so it’s important for companies to be supported by experts who can assist them in staying informed of the latest innovations in the field.
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Authored By – Hadeeba and Vibhor, Patent Analytics
Edited By – Ridhima Mahajan, Marketing
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