JUNE - 2023MARTECHOUTLOOK.COM19CXO INSIGHTSSEVEN WINNING STRATEGIES FOR THE "PHYGITAL" BEAUTY WORLDBy Maria Osorio, Director of Marketing and Product Development, Cosmetica Laboratories IncIn 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 realitiesAs 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 gameAI 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.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 digitalIn 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 processThe 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 Maria Osorio
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