Post on 17-Jul-2015
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April 30, 2015 DEBORAH WEINSWIG Executive Director – Head of Global Retail & Technology
Beauty Retail & Technology
AppS
Displays Augmented Reality
PCS
Gaming Beauty
Science
Technology Beauty
Global Beauty Market Overview
€124 €128 €135
€141 €145 €147 €153 €160
€167 €174 €180
$154 $159 $169
$193
$213 $204 $203
$223 $215
$231 $239
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EUR Converted to USD
Source: L’Oréal and OANDA.com
Global Beauty Market (Millions)
Global Beauty Market Overview
Source: L’Oréal
2014 Beauty Market: Geographical Breakdown
35%
22% 21%
13%
7% 3%
Asia-‐Pacific
Western Europe
North America
LaKn America
Eastern Europe
Africa, Middle East
35%
23% 17%
13%
11% 1%
Skincare
Haircare
Make-‐up
Fragrances
Hygiene Products
Other
2014 Beauty Market: Breakdown by Product
Source: L’Oréal
The Convergence of Digital Beauty 1. Facial Mapping
• Virtual Makeovers and Try-Ons
• ModiFace is a Toronto-based company with a background in building 2-D and 3-D facial simulations
• L’Oréal Makeup Genius
The Convergence of Digital Beauty 2. Magic Mirrors
• Attracting customers with visual suggestions and options
• Expediting the fitting-room process
• Theft protection
• Data collection
The Convergence of Digital Beauty 3. Magic Displays for Shopper Engagement
• Immersive, interactive experiences
• Affordable price is making large panels and custom displays more affordable
• 3D motion detection has moved into the consumer sphere
The Convergence of Digital Beauty 4. Color Matching Goes High-Tech
• Sephora + Pantone = Color IQ
• IMAN Cosmetics determines one’s “color signature” after taking a headshot
• The apps offer a wide range of product and look recommendations
Digital Beauty Lifestyle 5. Smartphones Double as Personal Beauty Consultants
• Smartphone apps are capable of:
– conducting skin analysis
– making product recommendations
– performing virtual cosmetic testing
• Allure + SkinBetter = App that applies dermatologist-grade scanning technology to identify skin issues
• The apps offer a wide range of product and look recommendations
Digital Beauty Lifestyle 6. Social Selling Beats Online Ads for Beauty Products
• 50% of beauty shoppers rely on beauty videos on YouTube when making a purchase (source: Google)
• With YouTube’s help, beauty content creators provide beauty products to website owners in exchange for links to their website
• The site generated 40% of traffic from YouTube links and conversion rates increased to 15%
Michelle Phan’s E-‐tailers
Digital Beauty Lifestyle 6. Social Selling Beats Online Ads for Beauty Products
Digital Beauty Lifestyle 7. Subscription Models • Consumers find value in avoiding the
drudgery of shopping for everyday commodity items
• They appreciate the benefits of curation
• Many consumers use subscriptions to treat themselves to a monthly gift
• Consumers love the convenience and dependability of the services
• Retailers love subscription models as a source of recurring revenue
Digital Beauty Lifestyle 8. At-home Beauty Devices Gain in Popularity • Home beauty devices are expected to be a
key growth area
• Hair removal devices account for one-third of the total beauty device market followed by a tie between cleansing and anti-aging devices
• US leads the beauty device market
• China posted 92.6% year-over-year growth in the category
• Europe’s growth in the at-home beauty sector is poised to outpace that of the US, with a 25% sales increase
Digital Beauty Lifestyle 9. Genetic Testing for Customized Treatments • Technology has enabled consumers to
obtain tailored anti-aging products based on DNA analysis
• Information transparency demands hypercustomization from beauty brands –products that are adjustable to the daily changing needs of an individual’s skin and hair
Geneu skincare lab in London offers skin profiles based on a DNA sample
from a simple mouth swab
Convergence of Science, Medicine And Beauty 10. Biotech Invades Beauty • The line between medical research and
beauty is blurring
• For products and therapies, particularly for anti-aging remedies:
– biotech materials
– genetic profiling
– stem-cell-based
Convergence of Science, Medicine And Beauty 11. Medical Tech in Beauty • Japanese brands Shiseido and MTG have used minuscule needles to
deliver product deep into the skin
• The beauty-essence liquid and eye patches developed by BIGENDO also deliver wrinkle-targeting ingredients deep into the skin
The Future Is Here 12. Wearable Tech in Nail Art and Makeup • Early areas of research include
– nail decoration
– tattoos and conductive makeup
– combining beauty and technology to empower the disabled
The Future Is Here 13. 3D Printing of Cosmetics • Desktop printer with a sub-$200 price tag that can print
makeup such as lipstick, lip gloss, eye shadow, blush, nail polish and brow powder
The Future Is Here 14. Organic and Environmentally Friendly Products
• Consumers have become increasingly concerned about chemical additives
• Environmental concerns surrounding the packaging of cosmetic products
• Retailers offer subscriptions and sales of products with packaging that’s organic, natural and environmentally friendly
The Future Is Here 15. On-demand Beauty Services • The app Beautified allows users to search for nearby salons
and book last-minute appointments using geolocation-based technology
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THANK YOU!