How Beauty’s “Big 6” are winning in beauty tech

In the highly-competitive world of beauty and cosmetics, every company needs to up their social media game to survive and stay relevant.

But to be on top, becoming digital goes above and beyond social networking sites. Today’s new battlefield is investing in breakthrough technologies that redefine and personalize customer experience and conquer new markets.

Here’s a look of what the Top 6 global beauty companies have been busy with this 2018:

1. L’Oreal

The top global beauty company is pursuing “a better customer experience through the combination of data and personalization.” In March, it acquired major augmented reality beauty tech company ModiFace. The tech start-up creates customized apps that allow users to put on make-up and try different hairstyles virtually. At the Viva Technology Paris Convention last May, it showed off its AR and VR-driven services and products that bring new beauty experience in the bathroom, hair salons, and boutique. For its yearly incubator program, L’Oreal partnered with Founders Factory to support start-ups and innovators.

2. Unilever

Unilever’s digital strategy reflects the direction the company is taking towards sustainability. Recently, it acquired majority stakes in Equilibrate and Schmidt’s Naturals — companies which carry personal care products made from organic and natural ingredients. They disclose information on the components of its products a level higher than what’s stipulated by law.

Aside from transparency, the company’s digital media promotes the values of sustainability over convenience to its customers at the forefront. In the field of new tech, Unilever has started using blockchain technology to run efficient and safe advertising.

3. Estee Lauder

With the company’s push for its digital-first approach, we saw the appointment of Samsung’s Digital Marketing Department Kelly Solomon as Senior Vice President of Consumer Marketing for M·A·C.

Estee Lauder has also been aggressive on YouTube. They’ve been uploading several videos giving its followers a detailed tutorial on how to properly use their beauty and cosmetic products. Customers can also chat with Estee Lauder’s beauty advisers online.

In 2017, Estee Lauder made a strategic partnership with virtual makeup app YouCam. This is to release their AI Look Transfer that allows users to virtually try-on different make-up.

Most importantly, the company’s digital shift starts from within the company. Estee Lauder’s staff of 2,500 including its executives underwent training in digital marketing, online shopping, and social media in cooperation with Facebook, Google, and Instagram.

4. P&G

Like Unilever, P&G is taking crucial steps towards transparency and disclosure of information of its products at the forefront of its digital media strategy. This is in response to the increasing clamor for natural and organic beauty products. The company’s investment in digital technology is focused on personalized customer experience with the launch of Olay skincare advisor apps and experimental stores that offer next-generation experiences.

5. COTY

COTY’s digital strategy is aimed at achieving a seamless customer experience through personalization. In the last two years, they’ve been focusing on AI, skin and DNA Analysis, augmented reality, voice support, and 3D printers. Their “I am what I make-up” Cover Girl campaign is a celebration of diversity in beauty regardless of age, gender, and race. This concept is in line with their pursuit of personalizing beauty services through technology.

This fall, COTY will open a flagship store and feature an experimental beauty playroom with a state-of-the-art digital interactive experience. Reeling from the resounding success of their Accelerator Program last year, they are also set to re-launch this project this 2018 to continuously discover and nurture new technologies.

6. Shiseido

The Japanese beauty powerhouse is now midway in its three-year plan to become the world’s most digitally advanced beauty company in the world. They’re in the process of digitalizing all existing services, integrating customer data and strengthening CRM. Shiseido has been acquiring start-ups focusing on AI technology to personalize its beauty services. Last December, it released Optune, a revolutionary personalized skincare system that creates a customized serum depending on the user’s specific needs.

Early this year, it opened “SHISEIDO THE STORE,” their flagship outlet in Ginza, Tokyo, where visitors can try their advanced beauty products and sustainable cosmetics.

Shiseido has also put efforts into open innovation by conducting joint development projects with high school students to capture new markets.

Text: Christine Roque
Original text ( Japanese ): Yukari Akiyama