How Tokyo is disrupting beauty tech
When it comes to the world’s leading nation in technology and innovation, we wouldn’t expect anything less… even in beauty tech.
From pushing the boundaries of Artificial Intelligence or AI to redefining the market beyond age groups, the Japanese are already on top of it.
This was the core discussion when, for the first time, beauty and fashion industry leaders, investors, start-up founders, and entrepreneurs came together at the first @BeautyTechSF community meet-up in Tokyo（@BeautyTechTokyo） last April 13.
Personalized experience
The event featured AI-driven companies like NewRope Inc. who independently developed their AI technology to level up the online shopping and clothing retail business experience for corporations and people alike.
NewRope Inc. CEO Satoshi Sakai presented their AI image recognition technology which can match or coordinate clothes with other items, show apparel to users which they previously showed interest in, and introduce similar items the user may like. He explained that it’s still up to the user whether the selected items suits them or not.
“AI is good at having one index, in this example that would be the goal of finding what the user likes. However, humans won’t be satisfied with just that.” Sakai said.
“If the range expands to a vague area where it can’t be said definitively if something is liked or disliked, such as with things someone’s been fond of for a long time or changes in the mood for that day, the AI will become confused,” he added.
Human and AI relationship
SENSY CBO Tomoko Minagawa, who shared the stage with Sakai, agreed that factors such as what one wants to wear depending on their mood of the day, or so-called “fluctuations,” is still not possible.
She predicts that in the future, once AI is able to gather data like facial expressions and tone of voice to identify emotions, learning of such “fluctuations” is possible.
“AI is what humans have inputted, so what is not thought of by humans is also not thought of by AI,” said Minagawa.
She added that, in the end, AI is simply a tool to process information faster than humans can. What gets ‘inputted’ and ‘outputted’ depends on what one wants to use AI for. If AI doesn’t have a clear goal of what to learn and what problems to fix, it becomes difficult to use in business.
“This is an aspect that needs to be well thought-out from a business perspective,” she said.
SENSY provides corporations with the AI technology to analyze each individual’s likes and dislikes in fashion. These clients also use this information to communicate effectively with their users.
The beauty tech company also developed an app called “SENCLO.” It uses images so that anyone can easily manage and coordinate clothes in his or her closet.
Sakai added that the way to utilize AI lies in “cleverly combining it with people.” He said that the good thing about AI is how it can tell us what can sell much faster and more precise than humans can, so AI it has a big role in gauging feasibility.
Customized content
According to Chloe Takahashi, one of the event’s organizers and CEO of Cosme Hunt Inc , AI is especially relevant in countries like the US that is overflowing with diversity in race and physical attributes such as hair, eye, and skin color. She said that with AI, there are lots of possibilities for modifying content to match with such diverse users.
Cosme Hunt Inc. is in the business of selling Japanese cosmetics targeting the North American market through a subscription program.
SENSY’s Minagawa, meanwhile, raised another example of effectively customizing content by using a chatbot feature.
Kyowa Co. Ltd, a company selling placenta-based undiluted solution and supplements, is able to collect voices of online shoppers which are usually difficult to obtain. Users might buy the same product even though their concerns about their lifestyles and skin care are individually different.
Through a chatbot, the AI learns all the concerns and requests of each person. This company uses this information in its product development and direct marketing.
Authenticity
Alongside the rise of AI, what remains to be universal for beauty and fashion companies in Japan and across the world, is the human touch and the value of authenticity.
Ken Watabe of video commerce app “Noin” said the most effective content featured women with whom the viewers could sympathize with. He said videos of women who fit society’s concept of beauty easily received negative comments.
Shiseido, on the other hand, went all the way by involving a team of high school girls in developing a product from concept to reality.
“Play Color Chip” is a multi-use color cosmetic for the lips, cheeks, and eyes designed to be shared with friends. This concept displays the current trend in Japan’s younger generation where they would rather spend their money on experiences rather than things. If the product doesn’t have the added-value of “experience,” it is simply not worth the purchase.
Transcending generations
HowTwo Inc. COO Asami Koshizuka, on her part, is challenging the norm of categorizing their customers by their age groups or demographics.
What worked well for HowTwo Inc. in their communications and marketing strategy is to focus more on people who like to buy beauty products and at the same time, active in collecting and sharing information about make-up.
“We give importance to values and preferences that users have rather than which generation they belong to,” said Koshizuka.
She said anyone, whether in their teens or sixties, can be targeted as long as their values and means of evaluation are similar. This enables the company to cater to a bigger audience.
HowTwo Inc. practices a “high sense of benefit” service wherein customers may avail of a free 30-day trial of cosmetics from different brands. In exchange, the user will have to write a review of that product online. What’s great is that they give away regular-sized cosmetics, not mere product samples, that are delivered straight to their homes.
Next big thing
With the stimulating exchange of beauty tech insights and strengthening of Tokyo’s beauty tech entrepreneur network through @BeautyTechSF, we’re sure all eyes will be on Japan for the next big beauty innovation the world has never seen before.
@BeautyTechSF is the leading community in beauty and fashion technology for and by entrepreneurs. It was founded by angel investor and former Lancome CEO Odile Roujol. Aside from Tokyo, it has branches in San Francisco, New York, Seoul, and Paris. It’s looking at expanding its reach into other regions.
Text: Christine Roque
Original text (Japanese): Shidu Kumon
