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April 30, 2015 DEBORAH WEINSWIG Executive Director – Head of Global Retail & Technology

Beauty Retail & Technology

AppS  

 

Displays  Augmented  Reality  

PCS  

Gaming  Beauty  

Science  

Technology  Beauty  

Global Beauty Market Overview

€124   €128  €135  

€141   €145   €147   €153  €160  

€167  €174   €180  

$154   $159  $169  

$193  

$213  $204   $203  

$223  $215  

$231  $239  

0  

50  

100  

150  

200  

250  

2004   2005   2006   2007   2008   2009   2010   2011   2012   2013   2014  

EUR   Converted  to  USD  

Source:  L’Oréal  and  OANDA.com  

 

Global  Beauty  Market  (Millions)  

Global Beauty Market Overview

Source:  L’Oréal  

2014  Beauty  Market:  Geographical  Breakdown    

35%  

22%  21%  

13%  

7%  3%  

Asia-­‐Pacific  

Western  Europe  

North  America  

LaKn  America  

Eastern  Europe  

Africa,  Middle  East  

35%  

23%  17%  

13%  

11%  1%  

Skincare  

Haircare  

Make-­‐up  

Fragrances  

Hygiene  Products  

Other  

2014  Beauty  Market:  Breakdown  by  Product    

Source:  L’Oréal  

The Convergence of Digital Beauty 1. Facial Mapping

•  Virtual Makeovers and Try-Ons

•  ModiFace is a Toronto-based company with a background in building 2-D and 3-D facial simulations

•  L’Oréal Makeup Genius

The Convergence of Digital Beauty 2. Magic Mirrors

•  Attracting customers with visual suggestions and options

•  Expediting the fitting-room process

•  Theft protection

•  Data collection

The Convergence of Digital Beauty 3. Magic Displays for Shopper Engagement

•  Immersive, interactive experiences

•  Affordable price is making large panels and custom displays more affordable

•  3D motion detection has moved into the consumer sphere

The Convergence of Digital Beauty 4. Color Matching Goes High-Tech

•  Sephora + Pantone = Color IQ

•  IMAN Cosmetics determines one’s “color signature” after taking a headshot

•  The apps offer a wide range of product and look recommendations

Digital Beauty Lifestyle 5. Smartphones Double as Personal Beauty Consultants

•  Smartphone apps are capable of:

–  conducting skin analysis

–  making product recommendations

–  performing virtual cosmetic testing

•  Allure + SkinBetter = App that applies dermatologist-grade scanning technology to identify skin issues

•  The apps offer a wide range of product and look recommendations

Digital Beauty Lifestyle 6. Social Selling Beats Online Ads for Beauty Products

•  50% of beauty shoppers rely on beauty videos on YouTube when making a purchase (source: Google)

•  With YouTube’s help, beauty content creators provide beauty products to website owners in exchange for links to their website

•  The site generated 40% of traffic from YouTube links and conversion rates increased to 15%

Michelle  Phan’s  E-­‐tailers    

Digital Beauty Lifestyle 6. Social Selling Beats Online Ads for Beauty Products

Digital Beauty Lifestyle 7. Subscription Models •  Consumers find value in avoiding the

drudgery of shopping for everyday commodity items

•  They appreciate the benefits of curation

•  Many consumers use subscriptions to treat themselves to a monthly gift

•  Consumers love the convenience and dependability of the services

•  Retailers love subscription models as a source of recurring revenue

Digital Beauty Lifestyle 8. At-home Beauty Devices Gain in Popularity •  Home beauty devices are expected to be a

key growth area

•  Hair removal devices account for one-third of the total beauty device market followed by a tie between cleansing and anti-aging devices

•  US leads the beauty device market

•  China posted 92.6% year-over-year growth in the category

•  Europe’s growth in the at-home beauty sector is poised to outpace that of the US, with a 25% sales increase

Digital Beauty Lifestyle 9. Genetic Testing for Customized Treatments •  Technology has enabled consumers to

obtain tailored anti-aging products based on DNA analysis

•  Information transparency demands hypercustomization from beauty brands –products that are adjustable to the daily changing needs of an individual’s skin and hair

Geneu  skincare  lab  in  London  offers    skin  profiles  based  on  a  DNA  sample    

from  a  simple  mouth  swab    

Convergence of Science, Medicine And Beauty 10. Biotech Invades Beauty •  The line between medical research and

beauty is blurring

•  For products and therapies, particularly for anti-aging remedies:

–  biotech materials

–  genetic profiling

–  stem-cell-based

Convergence of Science, Medicine And Beauty 11. Medical Tech in Beauty •  Japanese brands Shiseido and MTG have used minuscule needles to

deliver product deep into the skin

•  The beauty-essence liquid and eye patches developed by BIGENDO also deliver wrinkle-targeting ingredients deep into the skin

The Future Is Here 12. Wearable Tech in Nail Art and Makeup •  Early areas of research include

–  nail decoration

–  tattoos and conductive makeup

–  combining beauty and technology to empower the disabled

The Future Is Here 13. 3D Printing of Cosmetics •  Desktop printer with a sub-$200 price tag that can print

makeup such as lipstick, lip gloss, eye shadow, blush, nail polish and brow powder

The Future Is Here 14. Organic and Environmentally Friendly Products

•  Consumers have become increasingly concerned about chemical additives

•  Environmental concerns surrounding the packaging of cosmetic products

•  Retailers offer subscriptions and sales of products with packaging that’s organic, natural and environmentally friendly

The Future Is Here 15. On-demand Beauty Services •  The app Beautified allows users to search for nearby salons

and book last-minute appointments using geolocation-based technology

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THANK YOU!