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Pervading virtual reality into every aspect of life, artificial intelligence has gradually transformed into a common technology disrupting every industry. Personal care industry is no exception. The scope of advancement that these advance technologies open up for the companies in improving their product offerings is certainly unquestionable. TechInsight360’s Q4 2018 global survey reveals that leading personal care companies are leveraging AI to predict future direction of the market, reduce time to launch new products, and drive innovation. AI is making its way into the physical and online stores of personal care and cosmetic brands by enabling them to offer virtual reality platforms for differentiated shopping experiences. With technologies such as recommendation engines, virtual mirrors and augmented reality, and Natural Language Processing (NLP), cosmetics and beauty brands in collaboration with tech start-ups have adopted innovative selling and marketing techniques in their businesses.
Artificial Intelligence (AI) spend in personal care industry is expected to record a CAGR of 33.4% over the forecast period.
One of the significant factors driving the increased adoption of AI technologies by the industry is the rapid growth in online shopping, especially in the APAC region. Leading personal care companies are increasingly investing in AI to allure the young and tech-savvy consumers who prefer to shop online. Cosmetics and beauty market products continue to be sold more through traditional stores since customers prefer to sample the brands personally before making a purchase. To overcome this factor and increase the online sales, the cosmetic and beauty brands are adopting innovative technologies to replicate the in-store shopping experience online. Moreover, the online data is also being used for creating personalized solutions.
Along with the rising demand for Korean beauty products, there has recently been considerable rise is the demand for Japanese beauty products. To expand the market for Japanese products globally, brands are enhancing their sales through adoption of advanced technologies. Japanese personal care company, Shiseido, has been making investments in acquiring tech-companies to develop its AI capabilities. With customers preferring to shop online than visiting stores, the company is enabling its customers to see their appearance with various products by applying and removing makeup virtually through their mobile devices or desktops. The company has acquired US-based technology firms specializing in personal care industry and artificial intelligence such as Giaran and MatchCo.
Also, increasingly personal care companies are collaborating with technology companies to drive innovation. The leading French personal care company, L'Oréal, acquired the Canadian start-up ModiFace that is pioneering the growth of augmented reality and AI for personal care products. ModiFace is a Canadian tech company that is trying to disrupt the global beauty industry, especially the hair care market. The company’s make-up app allows customers to visualize hairstyles and make-up on themselves virtually. Similarly, European firm Symrise, a leading manufacturer of fragrances, has collaborated with IBM Research to initiate project Philyra which will use the AI technology of IBM for product design and creation of two fragrances for O Boticario, due for market launch in 2019.
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