Beauty brands exploring innovative ways to enhance customer engagements in 2023

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Beauty brands have seen an opportunity to explore the digital space with NFTs and the metaverse, allowing them to access new audiences and drive further engagement from their current ones. These can bring a new level of visibility, allowing brands to showcase their products in a way that produces never-before-seen return on investment (ROI). TechInsight360 expects more brands to enter the metaverse space over the next few years to capitalize on this trend to increase popularity and brand recognition through enhanced customer engagement in an immersive environment.

Brands are now beginning to build entire collections around NFTs to gamify the experience and make it more engaging for beauty fans. These collections also create opportunities for exclusive rewards and discounts for those who have completed certain challenges or collected certain NFTs. Some brands vouching for NFT collections include:

• Shiseido and the British Web3 firm Cult collaborated to develop the #AliveWithBeauty campaign, which includes a limited-edition line of 150 NFTs. These NFTS were created using a tool powered by artificial intelligence that processed a list of phrases connected to beauty to create a number of artworks that matched the words. Additionally, customers have the chance to join Shiseido's private NFT community, where they can gain access to incentives, tickets to brand-sponsored events and product samples worth US$1,197 in a year.

• Another fashion brand that collaborated with digital 3D artist Marc Tudisco for the launch of its NFT collection of 300 digital artworks in February 2023 was France-based Mugler. The collection known as We Are All Angel is designed as a metal bottle resembling its fragrance brand Angel.

As beauty brands expand their reach outside the physical world, they are turning to a new form of marketing - avatar ambassadors. Avatar ambassadors allow brands to connect with people in virtual environments and represent the brand's messaging around the metaverse. These avatars can appear at events, in games, and even on virtual billboards, giving brands access to an entirely new set of influencers and customers. 

• Leading cosmetics label Maybelline, for instance, unveiled its first avatar ambassador May as part of its newest Falsies Surreal Extensions Mascara campaign. May will appear in a forthcoming commercial with the company's worldwide brand ambassador Gigi Hadid. The company plans to utilize the avatar beyond a digital model of its mascara line. The avatar is expected to appear in a number of upcoming launches of virtual goods and events on metaverse.

The possibilities of innovation through metaverse for beauty brands go beyond these digital assets.  Beauty and cosmetics companies are increasingly using metaverse gaming platforms to promote their products. NYX Professional Makeup is one such example that rolled out its digital wearable collection for brand engagement through Roblox. The digital avatar of the users can purchase the accessories in the The House of NYX Professional Makeup that can be used for.  Brands in the iHeartland on Roblox. The wearables include Heart Lip Backpacks, Cute Pink Face, Glowing Heart Wings, Retro Hair Clips and Pink Varsity Jacket. The user winning the obstacle course in iHeartland can complete time trials to earn a chance to win hoverboard skin of the brand for use in the game.

The digital realm is a unique opportunity for beauty brands to roll out product releases with features like limited editions, rare or exclusive items, or custom-made products that are only available inside the virtual world. This provides beauty brands with the ability to offer their customers something special that they can't get anywhere else. Beauty brands are increasingly tapping onto these opportunities to provide their customers with exciting, unique experiences while also gaining exposure in the digital world.

The latest to dive into the metaverse space is the hair care brand Living Proof. The company in collaboration with e-commerce platform ByondXR has launched its virtual store, which is categorized into four immersive virtual spaces and an unique AI quiz.

• The visitors pass through the Dry Shampoo Centre to browse through the featured products to take up the AI Hair Quiz, built by Reveive, to determine their unique hair routine. They can also receive a behind-the-scenes tour of the Living Proof salon's Boston headquarters and see how to recycle cosmetics using Terracycle.
• The users, before uploading a selfie for analysis, can use an AI hair quiz to personalize their hair regimen by taking into account their existing hair routine and intended outcome. The brand will assess the results of the quiz to suggest a customized set of products and treatment solutions that promote healthy hair.
• Additionally, gamified components were included by ByondXR for retaining customer interest by awarding free samples for discovering a 3D Fortifying Tech Easter egg buried within the area. 

Beauty brands through metaverse are able to interact with their customers in real-time in the virtual world, get feedback on products while creating more awareness about the brand as a whole. Collectible virtual items, avatar ambassadors, and digital accessories and wearables create new forms of consumer participation and connection. This creates an entirely new source of engagement with fans and encourages loyalty by creating more personal relationships between them and the brand.