The beauty industry has long been known for its one-size-fits-all approach to skincare and makeup products. However, with the rise of hyper-personalisation, that is quickly changing. Hyper-personalisation refers to the creation of customised products that are tailored to an individual’s unique needs and preferences. 

 This trend is revolutionising the cosmetics industry.   According to one study, 72% of consumers are willing to pay more for customised cosmetic products. An IFOP study found that 42% of consumers are interested in personalising cosmetics, up from 30% in 2016. In an ultra-competitive world, personalisation has become a right rather than a privilege for consumers. 

At SwiftERM we ensure that exactly the same technology is applied to each individual consumer’s product offerings, including the timing of that presentation. This can’t be done online when visiting your site, as it represents such a time sliver of time in the life of your customer.

Therefore the only medium able to present what the algorithms have calculated from the data collected that each individual is mostly likely to purchase next by their own buying and navigation habits is email. AI hyper-personalisation or individualisation, of communication with each individual consumer relegates software, that only a few years ago was cutting-edge, to history.

Hyper-personalisation: A growth opportunity for the global cosmetics market 

As an emerging trend in the beauty industry, hyper-personalisation is a driver of customer relationships, based on 3 pillars: efficiency, speed and quality service. For 9 companies out of 10, this concept is considered to be strategic, and it is essential to capitalise on its added value.  Indeed, it is about establishing an efficient and sustainable strategy to ensure customer satisfaction and loyalty, to increase the volume of sales and strengthen brand image. But the key to it all is relevancy.

• Driving sales growth: With a personalised product offering, companies can increase their conversion rate and sales, as consumers appreciate being able to feel unique and have access to products that meet their specific needs. In addition, hyper-personalisation can help target potential consumers more accurately and encourage them to buy.
  
  According to Forrester, 77% of consumers chose, or were willing to pay more for, a brand that offered a personalised customer experience.
  
   
• Enhancing satisfaction and customer relevancy: The hyper-personalisation of cosmetics offers a unique and personalised shopping experience to consumers. As a result, it appears that 36% of customers are more satisfied with this new approach, and 47% are more likely to remain “loyal” to the company. 
  
  There are two distinct elements of hyper-personalisation in this industry i. the marketing element individualising the selection of products specific to their wants, needs and desires to present to each consumer on a perpetual basis and ii. the innovation of product manufacture devised specifically for the individual.
  
  
• Gaining a competitive advantage: Hyper-personalisation helps companies stand out from their competition by offering product selections that meet the specific needs of each customer. This gives switched-on (early-adopters aware of the diffusion of innovation theory) in cosmetic strong and efficient means to compete against the giants of the industry in a strong position in an increasingly competitive market. 
  
  
• Improving brand image: This can encourage consumers to consider the brand as a reference in personalised cosmetics and to recommend it to their friends and family, thus becoming true ambassadors. According to Mintel research, three out of five French consumers want brands to help them find products that suit them. 

Tech-driven personalisation: revolutionising cosmetics industry 

With the explosion of Big Data and the massive use of Artificial Intelligence, cosmetics leaders are investing in Beauty Tech to meet the new consumers’ needs. Thanks to these technological innovations, cosmetic brands are offering increasingly personalised experiences to their customers. 

Virtual-Try-On: Transforming online cosmetics shopping 

Today, more and more consumers are more susceptible to buying personalised cosmetic products online because the offerings are nurtured by retailers that care enough to serve each customer as different and unique. It was always thus, but now technology offers it too.

This new technology allows users to digitally preview and test products through an augmented reality system, helping them make informed buying decisions. According to a study by The NPD Group, consumers are 6 times more likely to buy personalised cosmetics online than in physical stores.

Virtual-Try-On removes the final barriers to purchase, and allows customers to benefit from an experience like the one in store. For instance, thanks to its “Lipscanner” application, Chanel allows consumers to virtually test lipstick shades or to find the color closest to their preference from the entire catalog. As for Nyx Cosmetics, consumers can test their favorite products, but also, new product combinations that will seduce them.  

A new dimension: Personalised beauty routines thanks to technology 

Cosmetic brands can meet an emerging need: a personalised routine. They use cutting-edge technologies to analyse each customer’s skin in detail and develop customised formulations. For example, L’Oreal offers a device called “Perso” that instantly produces personalised skincare formulas and cosmetic products using artificial intelligence.

Other brands such as “Function of Beauty” offer personalised shampoos and conditioners based on consumers’ specific needs. Finally, Allergan’s “Custom D.O.S.E” brand also uses AI to create personalised serums for consumers based on their skin care needs, adjustable to their lifestyle. 

Hyper-personalisation: What are the limits and challenges of this growing trend? 

Despite the benefits of hyper-personalised cosmetic products, this approach has challenges for companies. This new business model requires profound changes in organisation and production for companies, which must rethink their marketing mix. 

High production costs 

The production of personalised cosmetic products can be quite expensive due to the need to use high quality ingredients and advanced technologies. As a result, companies may limit their custom product line or raise prices to cover the additional costs. For smaller players in the industry, the task is more difficult: they need to grow fast, without slowing down delivery times to avoid frustrating customers. 

An overly restrictive regulatory system  

Another obstacle is the regulation on cosmetics, which is particularly demanding in Europe, as toxic ingredient combinations are banned. In addition, hyper-personalisation requires the collection of sensitive customer data, such as product preferences and usage history. Companies need to be transparent about how this data is used and ensure customer privacy, which is now on the consumer’s terms, to avoid confidentiality issues. 

Technical and technological complexity 

The production of personalised cosmetic products can be complex and requires specific technologies and processes. Therefore, companies must be prepared to invest in the right technologies and processes to deliver a quality personalisation experience. According to one report, few French companies are using AI in data collection and analytics tools. 

An organisational transformation

The internal organisation of the company is strongly impacted. To successfully implement it, the development of individualisation must be considered throughout the customer journey and constructed with the customer. It is a subject that must also be supported and monitored by general management. Thus, 65% of managers consider “the management, quality and availability of data a major difficulty”. The strategic vision is lacking, as is the support of the hierarchy. 

The future of hyper-personalisation 

Hyper-personalisation is a trend that is reshaping the beauty industry by offering consumers a high level of customisation and personalisation. By using advanced technology to analyse customer data, companies can create products that are uniquely tailored to an individual’s needs and preferences.

This trend is leading to increasing customer satisfaction, loyalty, and sales, while also enhancing brand image and reputation. As technology continues to advance, it is likely that hyper-personalisation will become even more prevalent, so it’s important for companies to be supported by experts.