There’s no denying that pre-pandemic technology trends in the category accelerated as brands shifted to cater to a more digital consumer. AR and AI are driving the development of new category experiences that integrate digital and physical elements.
Mixed-reality shopping
The COVID-19 pandemic changed our relationship with retail forever. Sector lockdowns limited access and steered consumption of certain categories on the internet. Expectations for the category were reset by online experiences. For some, ongoing concerns about contagion are deterring them from returning to physical shops.
To address the trend of people preferring e-commerce over in-store shopping, category retailers are developing ‘digitally enhanced’ locations to entice customers back into stores, transforming in-store beauty retail into an omnichannel brand experience. It’s all about combining the finest of the physical and digital worlds.
Smart Sampling
In recent years, market leaders such as L’Oréal have invested in AI and AR-powered virtual try-on solutions. With expanding e-commerce and rising hygiene concerns, the opportunity for individuals to digitally test products prior to purchase is becoming increasingly important. It’s also becoming profitable, as customers begin to test goods they wouldn’t ordinarily try or purchase in a store. Armani has debuted AR at scale in China via WeChat, using L’Oréal’s ModiFace technology. Customers may use the app to virtual experiment on makeup and purchase it right away.
Tmall’s e-commerce portal has also included an AI experience to assist buyers in trying before they buy from online flagship stores such as Tom Ford.
E-expertise
When COVID-19 wreaked havoc on the retail beauty industry, companies turned to virtual platforms like Instagram and FaceTime to perform their services and share their knowledge. Mecca Brands began delivering virtual events and complimentary consultations over FaceTime in Australia. Others used Chat Box technology, such as Bobbi Brown and The Inkey List, to answer questions and provide product recommendations via online chat.
Commerce in the Post-COVID Era
COVID-19 is attributed to hastening the adoption of e-commerce. Beauty shoppers went online, and even as stores reopened, many continued to shop online. Ecommerce was a lifeline for a pandemic-stricken business. The popularity and sales of direct-to-consumer brands and pureplay internet platforms have increased. Ecommerce activity allowed major firms like L’Oréal to offset more than half of revenues lost in physical locations around the world. With online shopping growing more common, e-commerce trends are more crucial than ever for brands. Major market players are prioritizing social and live commerce, which has grown in popularity in digitally sophisticated economies such as China.
Live Commerce
The live experience is one of the most intriguing features of social commerce for brands. Live commerce is a practice that is gaining hold in China. It involves an influencer live streaming while they try out different things, connect with their audience, and then sell those products. It has also demonstrated its ability to transfer products at a large scale.