AI bringing the Revolution in Beauty and Cosmetics Retail
Because of the continued and growing use of products by women and, increasingly, men around the world, beauty brands are largely unaffected by economic ups and downs. In the event of an economic slump, such as the COVID-19 pandemic, other companies’ overall sales are impacted to a large extent. Cosmetics sales, on the other hand, are seen to maintain a consistent volume.
A question that arises here is how can beauty and cosmetics firms differentiate themselves from the competition in order to suit the needs of the quickly bored 2021 shoppers? AI in beauty and cosmetics is evolving so 360-degree dynamic customization is the answer!
Orbis Research estimates the global cosmetics market to be worth around $805.61 billion by 2023.
What Customer’s Need- Convenient Shopping Experience
People have become wary of “touch and feel” shopping, which was formerly the most popular way to purchase cosmetics before the pandemic. Consumers demand contactless shopping in and after 2021, which the beauty and cosmetics sector is starting to provide with artificial intelligence-powered technology (AI). In addition, in the coming years, income will be driven by the usage of augmented reality, social media community engagement, and highly customized experiences.
Are you interested to read more? Check out: Ways D2C Retailers can use AI to Drive Revenue
AI Beauty Supply and Demand Forecasting
AI leverages machine learning algorithms- the most advanced technological techniques for forecasting supply and demand. Machine learning algorithms examine previous data to forecast sales and shipment quantities. Supply chain apps, on the other hand, can forecast future demand in a different way.
When past data is no longer valid, predictive analytics creates forecasts. Predictive analytics algorithms look at a variety of external elements such as weather, seasonality, and public holidays to determine whether or not you need to order additional red lipstick for the holidays. Predictive analytics aid beauty businesses in adapting to changing demand conditions in this way.
AI-Powered Beauty Product Search
It’s difficult to make individualized skincare and beauty product suggestions via the internet. AI search engines, on the other hand, make this process much easier. AI search engines do not resemble a standard search box. Instead, during a brief quiz, such algorithms interact with buyer data.