Personal Care Spotlight

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Brand Engagement Strategies in Personal Care Across categories, consumers respond to helpful and personalized brand What’s in this experiences that improve their lives. As a category, Personal Care gets this right. eBook?

Granted, it’s a product category that lends  How personal care brands are winning itself to customer trial and is grounded in customers by delivering experiences self-improvement. But recently a number that boost confidence. of Personal Care brands are using new technologies that encourage trial and  What new technologies brands are experimentation, which empower using to bridge the gap between trial consumers to make their own choices. and purchase, both online and in-store. There’s a lot that other categories can  Why in-store and retail experiences learn from confidence-boosting brand engagements. should help customers be their best. Beauty and Personal Care (BPC) brands are focusing on enhancing consumer experience and engagement to win consumer confidence and drive sales.

Experience will overtake price and product

Increases the After having a positive experience with a company, 77% of customers would Intrinsic Value of recommend it to a friend the Product

When it comes to making a purchase, 64% Drives of people find customer experience more Sales important than price

Companies with best-in-class customer Boost experience management achieve year-over- year customer profit margin improvement Growth 527% higher than their peers, and 359% greater company revenue growth

Brand Engagement Strategies in Personal Care | PAGE 1 By leveraging augmented reality and concentrating on consumers’ personalized needs, brands are enhancing the customer experience in-store and online.

Allowing shoppers to virtually try products before purchase via AR and Artificial Intelligence (AI) technology 72% of shoppers said they want the in-store beauty experience to be a mixture of physical and digital elements, to make it feel more “real” and “believable.” The use of AR technology solves issues of testers not always being available, alleviates hygiene concerns and AUGMENTED prevents shoppers’ lips from becoming REALITY (AR) stained (A survey of shoppers by Coty, 2018)

Selling tailor-made products according to customer skin and hair needs We foresee customized products and experiences growing rapidly to about 15% of total sales over the coming years as we launch some innovative ingredients and PERSONALIZED/ consumer experiences. This percentage TAILOR MADE doesn’t sound much but we have grown PRODUCTS 300% annually for the last two years and growth will remain in triple digits for the next three years (Founder of Beauty Kitchen, 2018)

Brand Engagement Strategies in Personal Care | PAGE 2 New apps and devices are helping customers make informed decisions about what works for them.

Hair health analysis and SCHWARZKOPF’S customized shampoo by HAIR ANALYZER & the SalonLab Analyzer CUSTOMIZER system from Schwarzkopf

SHISEIDO’S MATCHCO SKIN TONER ANALYSER

THE NEUTROGENA SKINSCANNER

Create customized foundation with pictures taken on the MatchCo mobile app Product suggestions based on zoomed-in images captured by a lens tool (12 LED lights and a 30x magnification lens)

Brand Engagement Strategies in Personal Care | PAGE 3 Consumers are getting personalized consultations from brands, in the form of AI and AR experiences.

P&G ORAL B AI based personalized dental G E N I U S X care coaching. Real time feedback guidance to better brushing and oral health

NEUTROGENA M A S K I D – 3 D PRINTED FACEMASK

PHILIPS AR GROOMING

Personalized 3D printed face mask created by the users from a smartphone selfie. Virtually try styles with the AR and Neutrogena Skin 360 system facial mapping. AI-enabled facial analyses the skin needs and analysis provides personalised recommends ingredients style advice (launching soon)

Brand Engagement Strategies in Personal Care | PAGE 4 L’Oréal Case Study Here’s how a leader in the BPC space is winning customers by delivering personalized experiences. In March 2018, L’Oréal acquired ModiFace, an AR beauty company

Expected to bring additional AR and AI tools to its 34 international brands

Sales in first nine E-commerce sales months of 2018 growth in 2018

Try-On Online website that allows shoppers to try different L’Oréal make-up products virtually

Smart Mirror for In-Store Interaction L’Oréal in-store mirror allows shoppers to try make-up looks virtually in-store

Virtual Try-on Looks Platform through which shoppers can virtually see the look of various beauty products and dyes on their hair through a 3D artificial intelligence based technology

Brand Engagement Strategies in Personal Care | PAGE 5 PERSONALIZED SKINCARE EXPERIENCE

L’Oréal Technology incubator partnered with SkinCeuticals to provide a personalized skincare product – Custom D.O.S.E

In person one-to-one consultation with a professional who advises shoppers on the ingredients to suit their skins

After the assessment by the professional, all the collected data is transferred to a D.O.S.E machine that mixes and dispenses the serum ready for use

Platform through which shoppers can virtually see the look of various beauty products and dyes on their hair through a 3D artificial intelligence based technology

“At L’Oréal, we are poised to leverage technology to respond to the rising wave of consumer demand for personalized products and services, D.O.S.E acts like a mini skincare laboratory, combining lab grade formulation and factory grade manufacturing into a machine that sits on the counter. As we pursue our mission of beauty for all, we are inspired by the challenge of using technology and design to create innovative beauty experiences custom made for each consumer.” – Guive Balooch, Global Vice President of L’Oréal’s Technology Incubator

Brand Engagement Strategies in Personal Care | PAGE 6 PERSONALIZED HAIR COLOR EXPERIENCE

a new brand by L’Oréal, has…

In person one-to-one consultation with a professional who advises shoppers on the ingredients to suit their skins

Platform through which shoppers can virtually see the look of various beauty products and dyes on their hair through a 3D artificial intelligence based technology

In the UK, 23% of young female consumers are interested in digitally viewing their desired hairstyle/colour before a purchase

- Mintel

Brand Engagement Strategies in Personal Care | PAGE 7 In 2018, L’Oréal grew by 7.1%

Ecommerce accounted for 11% of the total sales

Driven by the success of its La Roche-Posay and SkinCeuticals brands, the Active Cosmetics Division grew by 9.2%

L’Oréal attributed its success to innovation and digital prowess

"Digital is at the center of everything we do at L'Oréal. It's not something which is 'nice to have' but something that is going to profoundly change the way we do business"

Lubomira Rochet, L'Oréal Chief Digital Officer

Brand Engagement Strategies in Personal Care | PAGE 8 Need help delivering a needs-based brand experience for your customers?

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