Cosmetica Labs

In today’s post-COVID world, the line between physical and digital spaces is blurred more than ever. As the industry becomes “phygital” beauty brands need a new playbook to engage with consumers in both realities. Some digital retail tactics such as virtual try-ons and AI powered personalization are slowly becoming threshold attributes for consumers as they expect brands to create more tools to facilitate their decision-making process.

What are the best practices to bridge the gap between technology and reality? How can beauty brands achieve a balance between physical and digital presence to stay relevant in an everchanging environment?

1. Craft immersive IRL experiences that connect both realities

As more young consumers demand experiential environments, beauty retailers are enhancing their brick-and-mortar journeys with technology to open new channels for playfulness and self-expression. Phygital retail spaces encourage consumer interaction via AR try-ons and VR in-store experiences.

Over the past few years, beauty stores that create unexpected backdrops and immersive experiences are gaining popularity. For example, shopping for beauty products in venues that resemble convenience stores or ice cream parlors promote fun, Instagram-able moments that can help increase foot traffic and digital engagement.

2. Invest in AI to raise your personalization game

AI can be the perfect ally to build a beauty brand’s unique selling proposition. Digital experiential elements generate interest and excitement with consumers building long-term brand relationships and increased loyalty. In addition, the data collected through these tactics keeps brands better informed to elevate the experience in the future.

“Some digital retail tactics such as virtual try-ons and AI powered personalization are slowly becoming threshold attributes for consumers as they expect brands to create more tools to facilitate their decision-making process.”

Think of elements such as quizzes to perfectly shade match a foundation or a photo-analysis app to create bespoke skincare routines to address specific concerns.

3. Bring some physical into your digital

In this hyper-digitalized world, the value of real-world connections is becoming increasingly appreciated across generations. That’s why it’s so important to merge both realities to be able to resonate with consumers. This means enhancing the online journey with a human touch.

For makeup brands, online virtual try-ons have become a staple as digital storefronts. However, the key to winning with virtual try-on tools is to connect it to physical product samples. Offer customized samples to match the user’s complexion or even bespoke gifts with purchase to enable product discovery and further develop consumer loyalty.

Another interesting way of connecting both worlds is for brands is to create platforms for real-time communication, such as webinars or one-on-one sessions with subject matter experts focused on product education.

4. Add a digital component to the product development process

The new product development so process has evolved to meet the needs of the digital world. Every new formula needs to be evaluated to prove its prospective success on social media channels and e-commerce platforms. New product planning includes thinking about how product textures, shades, and components need to be designed to appeal the digital savvy consumer. This includes the viral potential of ingredients, and the year-over-year growth of the product claims and keywords on Google search results.

Furthermore, qualitative consumer focus groups are a thing of the past. Data-driven product evaluation will help companies to predict consumer sentiment and forecast product reviews in a more accurate way. How many formula-exclusive data points are you analyzing before a product launch?

5. Icons tell the story better

Creator collaborations are key to gaining market credibility and building a digital community. Consumers are discovering new beauty finds through TikTok and Instagram creators who use digital platforms to share product experiences. As creator content will boost brand performance and recognition, creators need to be involved at the early stages of the campaign to guarantee alignment and authenticity.

The right partner can make or break a product or brand; therefore, many players are starting to explore virtual influencers to keep control of the narrative. Over the next couple of years, branded AI-generated influencers are expected to go mainstream, since they have potential to become an integral part of the brand’s identity.

6. Create branded digital playgrounds

The exponential growth of the gaming industry, as well as the evolution of the metaverse, will ignite beauty tactics across gaming platforms and virtual worlds. Consumers are increasingly spending time in digital spaces, making them ready for a new wave of complex virtual experiences.

Branded online destinations and gamified activations are a strategic channel to build a sense of community around a brand’s ethos. These digital playgrounds provide users an immersive space to defy reality and enable beauty brands to engage with younger audiences.

7. Remember, nothing is set in stone

Within my current position, I’ve had the opportunity to work with a wide array of beauty brands, from the traditional icon to the viral indie. This has enabled all sorts of conversations about the future of beauty and industry evolution.

It is critical to remember that as time goes by and consumer habits change, the beauty space is constantly reshaping itself to meet those new needs. Strategies that are relevant today may not generate the expected results in the near future, and value propositions can become basic expectations overnight.