How AI is Boosting the Growth in Beauty Industry
Artificial intelligence (AI) is progressively transforming into a general-purpose technology that permeates virtually every aspect of human life and society. AI is known to mankind in medical diagnosis, stock trading, robotics and various other fields, while less popular is the application of AI in the beauty industry. The entire human race is in the pursuit of beauty since generations and ageing is the biggest issue. AI has the perfect solution for the beauty industry, to quantify beauty using biometrics and analyse the data with the help of an AI platform.
The Market and Trends
The global cosmeceuticals and cosmetics industry has an overall market of USD 274 billion. Cosmetic manufacturers and retailers are busy building their online channels for the tech-savvy generation who prefer to shop everything online. This trend is rapidly picking pace in Western countries where people want an AI personal stylist these days. Companies are suing AI chat-bots to answer queries from the beauty enthusiasts and this is resulting in great outcomes to the brand. The sales of the brand are also witnessing a rise as the customers are being nicely guided by the AI system and the platform provides apt recommendations that can be executed blindly.
Leading by Examples
To give you an example published in Forbes, My Beauty Matches is known for being the world’s first personalized beauty product recommendation and price comparison website using proprietary machine learning and AI technology. Founded by Nidhima Kohli, My Beauty Matches and its Beauty Matching Engine technology allows users to compare prices on over 400,000 products from over 3,500 brands. The brand’s algorithm was built using proprietary machine learning and artificial intelligence by crunching data from all of its website users. The Beauty Matching Engine looks at data from the brands, clicks and consumer profiles over the last three-and-a-half years. Plus the advice is tailored by beauty experts. As a result, the recommendations become smarter and smarter every day. The consumers are turning to the use of mobile and other devices during their shopping voyage. Besides shopping, the usage of mobile also allows consumers to share their experiences, whether good or bad, with other consumers on the internet. People share views on social media channels namely Facebook, Twitter, Pinterest and others which influences potential consumer’s purchase decisions.
Further, designing and packaging beauty products will be a cakewalk once AI is adopted in full swing. Online shoppers have to primarily like the ‘look’ of the product which has given rise to innovative packaging in the skincare and cosmetic industry. According to a report released by Research and Markets, the global cosmetic packaging industry market is projected to reach $31.4 billion by 2020, an annual growth rate of 4.3%.3 Retailers package products using chicer green alternatives, incorporating natural or colourless closures while keeping the charm constant. Interactive and identification methods such as quick response codes, advanced barcode technology, and near-field communication (NFC) labels are being used in packaging to actively engage consumers with the brand.
To make the most of this digital wave, cosmetic retailers should embrace the innate capabilities of their digital touchpoints and integrate with AI platforms where their customers are already interacting. From customer service to e-commerce management, an AI system is capable of handling things very easily in less time. AI, as a concept, taking on a variety of forms and appearing in a range of applications, implies a new and possibly a deeper way of looking at beauty in 2018 and years to come.
This article has been authored by Irfan Memon, Director, Olivia Cosmetics.
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