Add Blockchain To Your Beauty Routine
Blockchain and beauty go together and entrepreneurs should take note
Beauty as a business (BaaB)
It is no secret that the beauty industry has been booming for years. As of 2018, the beauty industry reached $18.8 billion according to the NDP group. Skincare has grown by 13 percent and contributed 60 percent of the industry’s total gains.
Makeup is the largest category based on sales and who is surprised? Rihanna and the Kardashians have built their empires on makeup. Hair is the smallest fastest-growing category with a 25 percent increase in sales. The beauty industry is synonymous with the word disruption. Technology has drastically changed the way we consume beauty, and as continued growth in makeup, skincare, and hair is expected well in 2019 and beyond, technology will have to disrupt this giant disruptor.
Today’s Trends and Themes
There are several trends contributing to the growth of the beauty industry. Let’s face it, until we all find the fountain of youth we are looking for this industry will never go away. Per Jennifer Hessel, L’oreal alumna and industry consultant featured in Forbes, the following are the fastest growing trends many young brands are keen on:
The Instant Fix
Any product that shows immediate improvement in bags, brightening, or lines.
The Doll Look
Heavy makeup or surgery for porcelain and smooth effect. Think … flawless!
Skincare from the Earth
This category is high in attention and growth and directly associated with consumers prioritizing health and wellness across their lives and products they use (note that the transparency into these products is possible with blockchain)
Customization and Personalization
The luxury of creating a product that is unique and as special as you are
Other important trends in this industry have nothing to do with beauty, but technology. Social media has transformed the way we create, market, purchase and consume beauty products everywhere. More than ever, entrepreneurs in the beauty industry continue to surface. Young, independent, brands are making a name for themselves across social media platforms, online stores, and even in physical stores. Half the growth in the beauty industry is coming from online stores, meaning the other half is likely physical growth. While the online presence is great there are some concerns around the scalability, sustainability, and market reach as young, and independent brands continue to grow and expand on their own with limited resources. While most entrepreneurs will go for the online platform vs the physical stores, expansion and customer experience is essential. Large beauty conglomerates are looking to emerging tech to support their initiatives around corporate sustainability, supply chain, and the customer experience in the beauty industry as well.
How Disruption Helps The Disruptor
While popular and in demand, the beauty industry has been slow in the adoption of digital transformation. There are a number of challenges associated with the beauty business that stretches from companies to consumers. For example, payment and processing times, ordering/booking appointments and products, product integrity, supply chain distribution, and tailored/unique customer experiences. Thank goodness we have blockchain.
Blockchain-based systems provide product transparency, traceability, and integrity through an immutable ledger that utilizes cryptography to validate and record each and every transaction/event. This technology is really powerful in proving authenticity, and creating an immutable trail and history of what has gone into that product and that products’ lifecycle from origination/conception to point of sale and delivery. Blockchain has amazing potential for entrepreneurs who won’t have resources such as a procurement department, supply chain/logistics department, delivery company, and a payment processing department. An entire business can easily be run on a blockchain-based platform that can be expanded and sustained well into the future.
There are a few blockchain-based platforms targeted towards the beauty industry already, and this will only continue to grow from here.
JOLYY — online booking platform that utilizes blockchain technology to provide an innovative and effective beauty booking system.
COSMEE — a blockchain-based beauty platform that aims to create shared values for customers and companies. This is the first project of Cosmochain, that rewards cryptocurrencies to the users for creating beauty contents and community participation.
MANEcoin.io — provides on-demand beauty and wellness services globally. This is an e-commerce platform that leverages blockchain technology to provide consumers with on-demand wellness solutions.
A Custom User Experience
I recently went into Sephora and was able to try on fifty different lipstick shades, eyeshadows, and foundations… digitally. I didn’t have to walk out of the store with color stripes on my hand or use a bunch of tissue to try and take makeup off my face. It was all digital. Unique, custom experiences are becoming essential to the beauty industry. Today, there is an app for everything and this space is no different. One of the best ways to provide unique experiences to customers… data, information, visibility. Without data and information and visibility into your processes and consumers, you can try to provide a unique experience, but good luck. Blockchain offers transparency and visibility across products, payments, supply chain, and most importantly, customers. By utilizing data and analytical tools on top of the blockchain, you can visualize, decide, and create these so desired unique experiences, adding real value to consumers and creating brand loyalty in the process.
“The needs, values, and expectations of beauty consumers will continue to evolve in tandem with behavioral shifts stemming from more health-conscious lifestyles, ethical consumerism, digital connectivity, and a more authenticated brand experience” — Irina Barbalova, beauty and personal care global leader
An ecosystem of beauty or a beauty ecosystem
“50% of the reason your clients come to you has nothing to do with a comb, brush, or a color bowl” — Eric Fisher
I picture a world where my Sephora points are their own stablecoin, and I can trade beauty crypto for real crypto and vice versa. I picture going to a spa and the esthetician knows all of my preferred products and my skin type. I picture beauty companies refilling my orders based on product ratings and being able to tell when I am going to run out of a product and it is time for more. All while paying in crypto, of course. Blockchain is a key differentiator for the beauty industry and specifically entrepreneurs. The beauty industry is busting at the seams with countless entrepreneurs, and blockchain has the ability to transform their business and make them stand out from a saturated market.
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