Recently, the beauty industry has experienced an adjustment period, accommodating new shopper habits and priorities. As beauty brands and retailers evolve strategies, some have proven effective.
 
Following are highlights of some of the best practices and how these trends are moving the industry forward:

1. Personalization Is Essential

As 71% of consumers demand more personalized content and interactions, brands are trending toward leveraging AI-powered platforms, utilizing algorithms to analyze purchase patterns and consumer behavior to deliver a personalized experience, develop trust with consumers and influence purchase decisions.

2. Hybrid Beauty Experiences and Tech Integration

93% of Gen Z consumers are interested in interacting with AR and AI while shopping. Beauty brands and retailers are reaping the rewards with virtual popups, immersive screens, augmented reality filters, and virtual consultations. For example, Shiseido, in collaboration with Revieve, launched the AI Makeup Advisor, recreating the in-store product evaluation experience.

3. Digital Natives Need Digital Skincare

Our data found that users who engage with the Revieve selfie analysis take more purchase-related actions than non-selfie takers by 60%. Digital shopping experiences are trending given how they engage powerful shopper categories like Gen Z and Millennials.

4. Relationships Are the New Currency

Retailers and brands have birthed a new strategy, the “trust circle.” 57% of consumers are willing to spend more when they feel connected to brands, and two-thirds of consumers equate feeling connected to brands through trust. However, consumers are protective of their personal information, so if businesses want to reinforce a trusting relationship and gather customer data, transparent communication is key.

5. Staying Ahead of the Curve with Zero- and First-Party Data

More than 80% of marketers rely heavily on third-party cookies. The future where third-party cookies are no longer king is near and brands are getting ahead of the curve. With first-party and zero-party data, brands track consumer behavior better, enhance the experience and improve opportunities for cross-selling and upselling.
 
As brands diversify strategies to adjust to consumer behaviors and the digital age, anticipate more businesses across the industry adopting these trends to better understand consumer behaviors and outperform the competition.
 
About the Author
Sampo Parkkinen is CEO & Founder, Revieve, a technology company delivering consumer-centric personalized digital brand experiences powered by AI/AR.
 
Also read Parkkinen’s previous article for BP: “2023 Beauty Tech Trends.”