The U.S. beauty industry collected over 24B in 2022 from eager buyers of skin care products and related creams, lotions, lipsticks, and the like. The staggering statistic suggests that skin care is of paramount importance to consumers, especially in light of the fact that consumers purchased only 6B of fresh produce in 2022. What is going on in the skin care business?
In the past few years, “beauty tech” has entered the cosmetics aisle of many premium retailers and most retail stores are beginning to follow suit. So, what is beauty tech? Simply put, it is an emerging new technology that uses artificial intelligence (AI) and artificial reality (AR)-powered virtual try-on technologies and diagnostics. Beauty tech has become the newest form, minus the white overcoat and lipstick, of your neighborhood beauty consultant. The popularity of the tech-assisted experiences has driven the industry value to the highest levels due to consumer reaction to the tech and the resulting purchases of skin care products.
With AI and AR creating virtual try-on technologies and customer engagement driving toward the ceiling, how can a retail skin care business possibly hope to compete? We’re glad you asked!
There are several ways in which you can emphasize the qualities of your personal business alongside the AI or AR-assisted beauty tech you may purchase for your business.
The first way to emphasize the strength of your own business is to create a business plan that looks to the future, even as work continues in the present. If you don’t have a business plan, use this comprehensive skin care business plan to direct your progress every step of the way. In this plan, you’ll find marketing strategies, operations plans, financial projections, and a number of additional tools to help guide your steps in building your business plan.
With your business plan in hand, you can represent your business to lenders, investors, banks and financial institutions for funding, as needed. Further, you can offer presentations to other interested parties who may want to franchise your business model or partner with you to add locations to your business. Review and refresh your business plan as your business grows; it will become your roadmap for long-term growth and success.
What are your options when you consider beauty tech for your own business? You’ll find mirrors that enhance a face via software programs, augmented reality employed by beauty brands to emphasize certain facial areas that may need improvement, and skin care brands that will indicate which color palettes are correct for each customer via a tech sensor that details the customer’s face and features. These AI and AR-assisted tech tools are still prohibitively costly to purchase; however, with time, they will be offered at retail market pricing for everyone.
If you employ beauty tech in your business or plan to, let’s discuss ways to strategically market the features or benefits of these beauty tech tools. Because the appeal of beauty tech is found in the visual improvements of the “after” image, you will want to emphasize those images on your home page. Consider using a “before” and “after” collection of images, particularly if the images are considerably improved. You’ll want to consider explaining the process to customers via an email announcement, along with any cautions or medical limitations (such as irritated skin caused by light or intense sun). You’ll also want to offer demonstrations in-store and provide experienced employees to oversee the use of beauty tech, as well. Personal demonstrations will prove to be the primary way customers will buy-in to the products sold and AI or AR will demonstrate either perfectly.
Another marketing strategy would be to offer at-home skin care parties, where participants could try products with beauty tech before purchasing the products. Groups will sometimes assist in overcoming the more cautious individuals and the gatherings could prove to be very positive for acquiring new customers. Other efforts could include advertising a special introduction package with a blend of AI or AR tech and certain products packaged together, or seasonal specials when skin tones change and additional skin care is needed.
Finally, you’ll want to enhance your business by including the newest skin care products that conform to the beauty tech that supports the products. Ensure employees are well-trained and work on an operations guide from your business plan to cover the usage of the beauty tech within your retail business. Finally, it would make sense to employ metrics after 6 months to determine whether the beauty tech increased the rate of sales and paid for itself along the way. We guess it does and will continue to do so. Wishing you every success with your beauty tech!