Augmented Reality in the Cosmetic Industry:A Powerful Marketing Tool

While most organizations have adapted to the digital age and others are preparing for their takeoff, Augmented Reality (AR) has already landed and is mature enough to play a catalytic role in a corporation’s digital journey. An industry that has already started to leverage AR as a part of their digital strategy is the cosmetics industry. Global beauty brands like L’Oréal, MAC, Estee Lauder, Smashbox Cosmetics, and Bobbi Brown Cosmetics have already announced their collaboration with the Canadian tech company ModiFace (acquired by L’Oréal) and have launched their own beauty apps. The combination of face tracking and AR visual overlay allows users to virtually try a variety of beauty products before buying them by scanning their face with a camera and applying products in real-time conditions.

One of the primary parameters that determines the success of a brand and a product is the consumer experience, and AR can boost this experience and engagement level. More companies are identifying novel ways to personalize customer relationships, maintain customer loyalty, make the customer feel unique, and leave the customer with a memorable experience. Introducing AR technology such as real-time face analysis and overlay in the cosmetics industry enables companies to offer customized recommendations to their buyers in accordance with the buyer’s face shape, symmetry, and features at any time, without visiting a store. This automatically enhances a customer’s experience, because they can identify a product that matches perfectly with their unique face characteristics in real time.

Another impact of this AR technology is that it increases website traffic and online shopping while decreasing the chance of buying the wrong product or showing inaccurate product imagery online. Consumers are less reluctant to buy online cosmetic products; they should feel more confident about their decisions with this new technology. Undoubtedly, the introduction of AR in retail does not mean that traffic in stores and face-to-face communication will suddenly disappear; instead, it can also add value. MAC has introduced a virtual beauty mirror into stores—something that allows consumers who visit stores to try a range of products in less time while also being able to receive expert advice. In accordance with company’s announcement virtual mirror increases sales by an average of 31%.

Another crucial impact of AR is that it allows organizations to attract and embrace younger generations who are enthusiastic on exploring novel technologies and adopt them in their lives. For most companies it is vital to gain the appreciation and the loyalty of consumers early, with the hope of keeping them as customers for years to come. AR technology can support cosmetic companies to win youth target group and join them in their digital journey.

ABI Research understands that AR is a promising marketing tool and will play an increasingly important role in the customer experience. Buying decisions are closely associated with consumer’s feelings and perception, both about the brand and the product. The relationship between feelings and product is especially strong with cosmetic products because the products and choices reflect an individual’s identity. A similar idea applies to clothing, furniture, and other lifestyle items, which lends credence to the early AR efforts also seen in these areas.

Users that have experimented with AR apps and devices tend to have positive feelings and show enthusiasm and curiosity to discover and spend more time in the experience’s applications and virtual store. AR increases consumer engagement by making the user an active, rather than a passive, part of the experience—something that positively affects a user’s feelings toward the product.

Another factor that affects customer experience is the customer’s expectations. On the one hand, this means that consumers are aware that technology is not always realistic and is more prone to errors, so they are more lenient. On the other hand, this does not mean that customers will not be critical at all with the results and will not experience negative feelings that may deter them from purchasing a product. To avoid this risk, organizations should invest in technological quality while being aware of what customers expect from using the app and of what kind of information or guidance they will need to include.

Overall, this AR activity in the cosmetics industry fits nicely with the strong retail and marketing narrative being explored. The growth in capability and maturity of AR on mobile devices is a catalyst, bringing high-quality AR to millions—and eventually billions—of users on a well-understood, mature platform. The appeal behind AR marketing can be applied almost universally; it just requires some time and research on the part of marketers to understand and to capitalize on this new technology.