This month, artificial intelligence (AI) and augmented reality (AR) brand experience platform Revieve released its latest report titled “Navigating the Future of Retail: Connecting the Dots for Success in 2023 and Beyond.” The report focuses on the most important in-person and online retail trends and provides comprehensive offerings.”Highlights strategies and technologies that are reshaping customer engagement in the beauty industrysaid Sampo Parkkinen, CEO of Revieve.
CosmeticsDesign spoke to Parkkinen for his insight on the highlights from the report, the report's most surprising findings, and the best applications of the report's findings for manufacturers and suppliers to the cosmetics and personal care products industries.
Report and key takeaways
To compile the report, the Revieve team collected data “Through a rigorous process that includes accessing industry insights and collaborating with various brands and retailers“The data was then analyzed into results,” said Parkkinen.Comprehensive analysis, incorporating information obtained from Revieve's partnerships with brands, ensuring a rich and diverse data set that contributes to the report's depth and credibility.He explained.
These findings are particularly important for the beauty and personal care product industries because “Cosmetics manufacturers and ingredient suppliers who invest in innovative technology solutions and foster a culture of adaptability will be well positioned to thrive in the ever-changing landscape of 2023 and beyond.He explained.
“The results reveal”Strategies and technologies that are reshaping customer engagement in the beauty industry“, said Parkkinen. For example, one of the main points of the report is that ““Customers continue to look for seamless experiences online and in-person.”Data appears while22% of consumers are attracted to virtual shopping, retailers are responding by expanding their digital presence across different channels, and 81% of retailers plan to enhance their online presence in the next 12 months.”
Another revelation from the report focuses on the “physical” approach to consumer engagement, an innovation where “Brands are integrating their digital experiences with physical stores“, He said.”Now more than ever, brands and retailers are focusing on tapping into the unique interests of their customers, with nearly 60% of consumers envisioning more than half of retail spaces dedicated to immersive encounters by 2025Parkkinen added.
Automation is another trend.”Within the retail landscape that can be a pivotal force in elevating retail operations and enhancing the shopping experience“, he shared, and the report revealed that”75% of consumers embrace automation, and 23% tend to shop where modernization is welcomeThis result is noteworthy because “Although there are still some misconceptions, the purpose of automation is to revolutionize the retail industry by simplifying time-consuming tasks, allowing employees to focus on delivering memorable brand experiences with a personal touch.He explained.
These resultsProviding an opportunity for beauty and personal care product manufacturers and suppliers to embrace the power of technology to enhance customer loyalty and gain a deeper understanding of consumer needsParkkinen said.
“By leveraging third-party data, self-reported preferences, behavioral and psychographic data – retailers can Create a complete picture of their customers to make informed decisions regarding inventory, product offerings and promotions, enhancing revenue generation and customer retention“, summed up.
Surprising results
Of all the report's findings, three findings stood out that were unexpected or surprising to the Reviev team. The first surprising finding relates to text shopping and self-service alternatives. This upward trend is noticeable and unexpected because it represents “The significant shift toward text-based shopping and an emphasis on self-service indicates shifting consumer preferences, challenging traditional shopping normsParkkinen said.
The report’s data revealed that 19% of consumers expressed great interest in shopping via text messages, and “More than half of retailers (57%) see the importance of self-service alternatives such as checkouts or chatbots“, which is a strong indicator that retailers are likely to embrace more accessible customer service options in the coming months.
The second surprising finding was related to consumer acceptance of automation, and the data reflected that 23% of consumers were more likely to shop in automated retail stores. This is unexpected because “Despite concerns about job displacement, positive consumer perception of automation indicates a willingness to integrate technology into the retail experienceParkkinen explained.
This finding also reflects that for beauty brand manufacturers and suppliers, the path to integrating technological advances into the supply chain to provide more in-depth product information to create a more seamless shopping experience may be clearer than previously expected.
The final surprising finding in the report concerns generational AI and conversational AI in beauty technology. Parkkinen saidA transformative advance in the world of AI is the emergence of Gen AI and Conversational AI“,” And “The depth and diversity of AI applications in the beauty industry, transcending traditional boundaries, reveals an amazing level of innovation and customer engagement.” This can include immersive experiences such as virtual try-on technology and other digital options for personalization in the consumer shopping experience.
Next steps
Moving forward, Revieve's next steps include leveraging the report's findings to inform more in-depth research into retail consumer engagement. For example, “In response to the transformative role of Gen AI highlighted in the report, Revieve is poised to explore deeper integration of Gen AI technologies into its solutionsParkkinen said.the objective is harnessing the power of Gen AI to increase personalization, particularly in the beauty technology sector, providing customers with more immersive and tailored experiences..”
In addition, due to the report’s findings, the platform now has more “Clear understanding of the pivotal role of data-driven strategies“He is planning.”“Intensify efforts to obtain additional first-party and zero-party data.”
“This strategic move is designed to enhance the depth and breadth of customer insights, enabling brands to improve their approaches based on a more accurate understanding of customer preferences and behaviors.” he added.
He finally concluded by saying:Based on the importance of data-driven personalization, underscored by the report’s findings, the platform plans to focus more intensely on creating more comprehensive customer profiles moving forward. “By collecting and analyzing a wide range of data points.” He said“The company aims to empower brands with the insights needed to more accurately design products and marketing strategies to suit individual customer preferences.”.”
In the coming months, Revieve will release the second part of the report, which includes “Additional valuable data, digital insights and customer profiles from Europe, the Middle East and the US.”Parkkinen said. Regarding this second report, he explained:This next section promises to provide a more comprehensive understanding of Revieve's strategies and their impact on helping brands build and enhance customer loyalty in diverse global markets.Such as beauty and personal care products.
