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Customers want more personal, customised beauty products in their regimens. Why aren’t more companies delivering?
According to the 2023 Vogue Business Beauty Index, 76 per cent of respondents say they desire personalised product options, yet only 23 per cent of brands currently have these offerings available.
Some brands are coming to the table with bespoke beauty products. Skincare brand Drunk Elephant sells “skincare smoothies”, which let customers choose products and ingredients to blend together to create a more personalised skincare product. Makeup brand Hourglass has a line of Curator Palettes that lets consumers select their eyeshadow shades, while K-beauty brand Clio paired limited-edition cat stickers with their makeup, so buyers could customise the packaging. Cosmetics brand Charlotte Tilbury and luxury fragrance line Diptyque are among those offering product engraving.
“Personalisation is becoming table stakes for beauty brands, meaning it’s becoming a new minimum expectation for the industry,” says Audrey Depraeter-Montacel, managing director and global lead for Accenture’s Beauty Industry Practice Group. It also helps companies create a more intimate relationship with their audience. “[It’s] one way beauty companies can make consumers feel recognised as individuals, by enabling them to connect with a brand in a unique way.”
According to a 2022 report published by Research and Markets, the personalised beauty industry is expected to reach a value of over $51 billion by 2026, up from $37.72 billion in 2022 — giving companies an incentive to provide these types of offerings.
But personalisation in beauty has yet to scale. According to Depraeter-Montacel, many beauty brands have struggled to build close relationships with consumers due to lack of insight, making it difficult to create customisable offerings. However, audiences today are more willing to share personal information than ever before — and companies are jumping at the opportunity by creating zero-party data profiles through mediums like quizzes with consumer buy-in, she adds. Another key barrier is the financial investment required to make customisable and personalised products right.
“The economies of scale are still difficult to achieve for personalised products, especially in the formulation arena,” says Manola Soler, senior director at Alvarez Marsal’s Consumer and Retail Group. “Although on the rise, personalisation alone is not enough to build an entire brand promise, [but] it can be a value-added element that brands incorporate selectively into their strategic roadmap.”
Creating a better experience by meeting specific needs
Drunk Elephant founder and chief creative officer Tiffany Masterson says the skin smoothies — explained online in the “Smoothie Glossary” — work for results as well as brand engagement. She slowly started to feed the concept to consumers around 2016. By the next year, consumers had latched on. “I got the results of our clinical studies that proved what I knew intuitively was true: not only was mixing faster and easier, but it was great for getting real results,” Masterson says. On TikTok, there are thousands of videos of users posting their blends, which is a fun way for customers to engage with the brand.
“[There’s a large] opportunity around personalised product curation,” shares Soler. “Crafting experiences that can pair consumers to the right products is still a big unlock in the beauty space, especially in functional categories like skincare.”
Diptyque, meanwhile, lets customers personalise packaging, offering both engraving and embossing. Customers can personalise products on the Diptyque website or in New York’s upcoming Madison Avenue store, set to open in early December. “Personalised products feel special to our clients, and we see many of our clients mark special occasions — such as birthdays, life celebrations, wedding anniversaries — with their personalisation,” says Julien Gommichon, president of Americas at Diptyque.
Experts say that giving customers a choice to tailor their products, be it formulations or appearance, can drive brand loyalty. It can also give brands further insight into their customers. If they have a reason to share their data, like through a quiz, they often will. “Consumers are choosing to take surveys and questionnaires so that they can get more personalised products and experiences in beauty,” Depraeter-Montacel says. “For example, the exact right shampoo and conditioner formulation for a hair type or climate.”
With this type of insight, newer companies like Prose — an online customisable haircare brand that recently entered the skincare space — could offer personalised formulations from its inception, and find quick success. New technological advancements in AI are also enabling companies to equip customers with the right tools to care for their skin.
“From the initial consultation, our AI algorithms consider a multitude of factors — from skin and hair type to personal beauty concerns — ensuring that every recommendation is highly tailored,” shares Arnaud Plas, co-founder and CEO of Prose. “This approach not only enhances customer satisfaction but also simplifies their choices in an otherwise cluttered market.”
Beyond AI and insights, there’s also a psychological aspect of personalisation that’s important for companies to consider. Especially when aiming to target consumers whose needs have long been excluded from the general beauty narrative.
“People have [different needs and] preferences, which require specific products and routines,” says clinical psychologist, hair expert, and founder of PsychoHairapy (a platform connecting the effects of hair care to mental health) Dr Afiya Mbilishaka. “Beauty routines also have a psychological impact on our self-esteem and overall well-being, hence why it is important for individuals to personalise their routines to feel nurtured, taken care of, and like they belong.”
Why aren’t more beauty brands offering personalisation?
To overcome the scale problem, Depraeter-Montacel says that one solution could be to test out the concept with smaller product ranges before scaling through the business.
But for those who are ready to take the plunge, and want to create custom formulas, Plas suggests leveraging the power of AI. “Our data shows a strong resonance of our AI-recommended routines with our customers — 73 per cent follow the prescribed routine with minimal variation,” he says. Furthermore, he shares that Prose sees a 66 per cent customer return rate within six months, when the average repeat rate is around 25.9 per cent. “This not only reflects the success of our customised solutions, but also the deep trust our consumers have in our brand,” he notes.
In order to bring the personalised experience to brick-and-mortar stores, Diana Peinado, general manager and vice president of custom lip colour brand Lip Lab, shares that while mapping out the best locations and extensive staff training can take some time, it’s all a part of creating an unforgettable experience. “Offering customisation, working directly with our guests, and getting to be with them in person often results in them returning with friends and family,” she says.
Still, there’s no need to follow a traditional model. Entering this category will look different for each company. “Personalisation does not always have to come from unique formulations,” Soler shares. “There could be customisation opportunities around packaging or personalised experiences. For example, a brand knowing your purchasing history to make compatible product recommendations.”
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