The global Artificial Intelligence (AI) market in beauty and cosmetics is projected to reach $13.34 billion by 2030, with a robust CAGR of 19.7% from 2021 to 2030, according to InsightAce Analytic. To stand out in an increasingly competitive market, beauty retailers must harness predictive and generative AI to drive discovery and revenue. With consumers becoming less proactive in seeking out new products, it’s crucial for brands to innovate and deliver their offerings directly to potential customers.
How Beauty Retailers are using AI:
Sephora: Virtual Artist: Sephora’s Virtual Artist app uses AI to allow customers to try on different makeup products virtually. It generates real-time simulations of how various products will look on the user's face.
Function of Beauty: Custom Haircare and Skincare: Function of Beauty uses AI to create personalized haircare and skincare products. Customers input their specific needs and preferences, and the AI generates custom formulations tailored to their requirements.
Proven Skincare: Data-Driven Formulas: Proven Skincare utilizes AI to analyze data from skin types, environmental factors, and user preferences to create personalized skincare formulas. Their system generates custom skincare products based on extensive data analysis.
L'Oréal: ModiFace: L'Oréal’s ModiFace uses AI and augmented reality to provide virtual try-on experiences for makeup. The technology creates realistic simulations of how different products will appear on users’ faces.
Estée Lauder: AI-Powered Chatbots: Estée Lauder employs AI chatbots on their website and mobile apps to offer personalized beauty advice and product recommendations. These chatbots use natural language processing to interact with customers and guide them through their purchase decisions.
Olay: Skin Advisor: Olay’s Skin Advisor platform uses AI to analyze users’ skin conditions through uploaded photos. It then generates personalized skincare routines and product recommendations based on the analysis.
Fenty Beauty: Shade Finder: Fenty Beauty’s Shade Finder tool utilizes AI to help customers find their perfect foundation shade. The AI analyzes user input and matches it with the closest available shades in their product range.
Major beauty brands are already leveraging AI to customize products and experiences. Are you ready to boost engagement and build stronger customer loyalty with a more personalized approach? Discover 3 AI strategies beauty retailers can leverage for a successful holiday season:
Strategy 1: Use Generative AI to Enhance Product Discoverability
Generative AI transforms how beauty products are discovered online by creating detailed, personalized content and enhancing search capabilities. Especially when it comes to improving the product discovery process, instead of using filters or keyword search, products can be discovered by replicating the in-store shopping experiences online when a sales association helps you discover the right products.
Example:
Beauty retailers can leverage AI to generate optimized product descriptions and summaries for their detail pages, making it easier for customers to find and understand products. For instance, a customer could search for “long-lasting lipstick for a formal event,” and AI could dynamically create relevant product recommendations and descriptions.
Strategy 2: Use Generative AI to Elevate Sales
Retailers use generative AI to create smoother, more personalized interactions by curating offers and enhancing online and in-store digital experiences. In Salesforce’s Connected Shoppers Report (Fifth Edition), 92% of retailers say they are investing in AI more than ever to improve shopping experiences, and nearly 60% of retailers say they are already using AI to help store associates make product recommendations to shoppers. More than half are creating a conversational digital shopping assistant to help shoppers find what they are looking for, creating personalized product bundles, and creating virtual models for product detail pages.
Example:
Beauty retailers can use AI to create virtual try-ons or personalized product bundles. For example, AI could offer personalized skincare routines or makeup combinations based on a customer’s preferences and past purchases. For instance, Sephora uses AI for virtual try-ons and chatbots to enhance customer interaction, L'Oréal’s ModiFace uses AI and augmented reality to provide virtual try-on experiences for makeup, and Estée Lauder employs AI chatbots on their website and mobile apps to offer personalized beauty advice and product recommendations.
Strategy 3: Use Generative AI to Accelerate Content Creation
Generative AI is increasingly used to create engaging content across various marketing channels, including social media, influencer campaigns, and video ads. Salesforce Research indicates that 58% of retailers are using AI to produce creative assets, while 39% are exploring its potential.
AI can automate content creation, optimize customer segmentation, and tailor messaging based on user behavior. It also enables the generation of text, images, and videos, enhancing both content quality and relevance.
Here are ten ways generative AI can be leveraged for content creation:
- Text generation: Generative AI models can create high-quality written content, generating blog posts, articles, and product descriptions.
- Multilingual content: AI can translate content into multiple languages, making it easier to reach a global audience without manual translation.
- Content enhancement: Generative AI can improve existing content by suggesting edits, refining language, and making it more engaging. It can also help maintain consistency in tone and style across different pieces of content.
- Chatbots and virtual assistants: AI-powered chatbots and Vas can generate responses to customer inquiries, provide information, and even engage in natural language conversations.
- Video and image generation: AI can generate images, videos, and animations for product images and video advertisements.
- Content personalization: AI can analyze user behavior and preferences to deliver personalized content recommendations, enhancing user engagement and retention.
- Social media content: AI can generate social media posts, hashtags, and captions, recommending the best times to post for maximum engagement.
- Content curation: AI algorithms can curate content from various sources, helping creators find relevant articles, images, and videos to share or reference in their work.
- Automated transcription and subtitling: AI can transcribe spoken content in audio or video files and generate subtitles, making content accessible to a wider audience and improving SEO.
- Content metrics and analytics: AI can analyze content performance, providing insights into what works and doesn’t. This data can inform future content creation strategies.
Ready to harness the power of AI strategies for your business? Contact OSF Digital to explore how our expertise and innovative solutions can guide you through the evolving landscape of AI.
As Salesforce’s only AI-powered partner, OSF Digital has been leveraging AI tools since 2018 to drive efficiency and innovation. Our AllAi Productivity Platform has proven to boost development output by 42%, reduce ticket closure time by 40%, and cut task time by 11%. Let us help you unlock the full potential of AI to deliver personalized, impactful customer experiences and achieve faster, more effective results. Discover how we can help you implement cutting-edge strategies, enhance customer experiences, and achieve remarkable success in today’s dynamic market. Reach out to us today and take the next step towards transformative growth.
