By Alice Chang, CEO at Perfect Corp.
The global beauty industry is projected to be worth almost $440bn by 2026. As the industry looks ahead to this great opportunity, the retail landscape is currently in the midst of a digital transformation. Consumers are looking to connect with brands online more than ever before, and as consumer behaviors and trends evolve, luxury beauty brands will need to adapt. Today, it is essential for brands to create engaging digital experiences that inspire and educate consumers along the shopper journey.
As more consumers seek out digital channels to experience beauty, luxury beauty brands must find new ways to provide consumers with personalized experiences and recommendations. Although many luxury beauty brands are known to provide a personal touch and an elevated shopping experience, there is now increased demand for brands to provide hyper-customized experiences. This is especially important for luxury beauty brands, whose consumers value and expect superior service and exclusive experiences.
As the beauty industry shifts to a digital-first mindset, luxury shopping behaviors are changing. Today, one size does not fit all in the world of luxury beauty, and there is a heightened expectation for luxury makeup brands to deliver high touch digital experiences that are personalised and catered to individual shopper needs.
Why Luxury Beauty Brands Must Adopt a Digital-First Mindset
Traditionally, consumers interested in purchasing a beauty product would have visited a store, picked up a tester, and tried out the product on their skin. Following the pandemic, brands must ensure that their shopping experiences are sustainable, safe, and hygienic for consumers. This means that the product try-on experience must be reimagined in a digital setting.
When it comes to luxury beauty, customers also want to be sure that a product is right for their needs before spending on a new shade or investing in a new item. For this reason, luxury beauty brands must offer personalised product recommendations and digital experiences that increase purchasing confidence.
As consumer shopping preferences continue to change, brands will need to adapt the traditional in-store and online shopping experience to meet these demands. The answer to this is in digital-first strategies powered by virtual try-on and beauty tech.
How Virtual Try-On Technology Drives Personalisation for Luxury Beauty Brands
As consumers turn to online channels, they are seeking the enhanced experience and personalisation they once found in-store with luxury beauty advisors. With the advanced technology available through AR and AI beauty tech, luxury beauty brands can deliver this experience digitally with virtual-try on, and even offer live digital consultations with beauty consultants. With AR-powered live digital consultations, customers can receive beauty advice from a professional makeup advisor via a video call. Advisors can recommend the best shades and the customer can try on the shades instantly through live AR try-on. This technology brings the luxury beauty counter experience directly to the consumer via their mobile device or laptop.
With AR and AI virtual try-on technologies, luxury beauty brands can also help every customer find their perfect shade. This high level of personalization builds the consumer’s connection with the brand and reinforces the exclusivity of the luxury brand interaction. The custom product recommendations provided by AR and AI technologies also help build the consumer’s affinity and loyalty towards luxury beauty brands. These interactions help luxury beauty brands create authentic connections with consumers, as the consumer knows the brand went the extra mile to recommend products tailored to her individual needs. By harnessing the power of beauty tech and advanced facial tracking technologies, consumers can find the right shade in a matter of seconds and feel confident that they are purchasing the best product.
For luxury beauty brands, enabling customers to interact with and experience products before purchasing is integral for building connections and brand love. Shoppers want to experience luxury products before purchasing. Luxury beauty brands are able to recreate this multi-sensory element of shopping through AR and AI-powered virtual try-on technology. Customers can see product textures and finishes come to life through hyper-realistic effects that recreate the in-store experience. Additionally, with minimal waste and the ability to try on multiple products instantly, virtual try-on technology is revolutionizing the way consumers test products safely.
The Benefits of Virtual Try-On Technology for Luxury Beauty Brands
Companies such as Perfect Corp., have partnered with over 300 beauty brands globally to bring AR and AI-powered virtual try-on experiences to life. Luxury beauty brands that have implemented AR and AI-powered beauty tech solutions have seen huge increases in digital engagement metrics, with many observing triple-digit increases in customer engagement, as well as increases in product add-to-carts and online conversions. Brands such as Estee Lauder have observed conversion rates 2.5x higher than average after implementing high touch virtual-try on experiences in-store and online. The power of AI and AR in luxury beauty is evident in these results, and it continues to prove its value as new technologies and features are developed.
Virtual Try-On and Beauty Tech: An Adaptable Model for the Future of Luxury Beauty Retail
As we look to the future of luxury beauty retail, the possibilities for virtual try-on and beauty tech are endless. Virtual try-ons and digital beauty consultations can easily be adapted to different formats and channels, whether via smart beauty mirrors at luxury beauty stores, online on a retailer or brand’s website, or even in social media and digital advertising. Virtual try-on technology will be key to creating high touch, exclusive consumer experiences and can help luxury beauty brands engage consumers across the shopper journey.