What opportunities does tech present to Africa's beauty Industry

1. Beauty, Tech and Distribution Channels:
Opportunities and Possibilities for Africa
Region
Presented by Raymond Chimhandamba,
Handas Consulting

2. 3 key themes to explore
• Beauty meets tech
• Beauty meets mobile
• Mobile Tech as a potential driver for Africa’s beauty
industry

3. “We want to be the
number one beauty
company.”
L’Oreal 2018
Beauty meets tech

4. 1. AI (Artificial Intelligence) 2. AR (Augmented Reality) 3. Voice
Tech drivers in beauty

5. • 50% of women complain that they
cannot find their right shade of
foundation (BBC)
• Women of darker skin tones want
more choice
• Impractical to put thousands of shades
on the shelf
• 66% of UK women 16-24 believe they
can get new beauty tips from the
internet (Mintel)
• More personalised and more precise
beauty products
Technology has created a more demanding consumer

6. • Sephora’s Visual Artist got 8.5M users
• Visual Artist App grew revenues by
11% (Source: Adimo.co/news)
• 200m shades tried on its Visual Artist
since its launch in 2016 (BBC)
• AR and Influencers give consumers
greater access to innovative beauty
products
Technology and Personalised beauty

7. • 61% on consumers’ online time is on
mobile (Econsultancy)
• Mobile screen time more personal than
TV/Computer
• More attentive when consuming media
from mobile
• 46% share results of what they bought on
social media (BBC)
Beauty Meets Mobile : Consumer and screen time

8. • Appointment apps for beauty brands and
shoppers
• Subscription based orders and alerts
(11% of female cosmetic consumers
subscribe to a beauty box) (Predictspring)
• Europe’s leading online beauty retailers
report 50% of their business from mobile
devices (Econsultancy)
Beauty Meets Mobile: Shopping

9. • Make-Up tutorials and influencers are more
authentic than glossy mags
• Beauty brands fueled by growing
communities. Make-up tutorials most popular
Youtube beauty content (Predictspring)
• Age of selfies gives brands millions of
advocates
Beauty Meets Mobile: Sharing and Online Communities

10. • Rihanna’s Fenty earned $72M in first
month
• Rihanna used 66M followers on her
personal Instagram
• Kylie Jenner converted her 121m fans
into customers
• Kardashians have done the same
Social Media drives earnings
Source: Adimo.co.

11. • Virtual Cosmetics try-on
Note messy
Saves time
• Micro-fulfillment
Too compact for humans
Fast accurate delivery and in-store
execution of purchases
• Mobile training (BYOD) By Your Own Device
Make-up tutorials on mobile
Beauty Retail Tech Trends of 2020

12. • Loyalty-based apps most sought after mobile
tech
• Tiered loyalty programs to boost adoption
• Drives repeat purchase and conversions
• Engaging functionality (similar to gaming)
AR +Subscription service = Repeat purchase
Anchoring Loyalty with beauty rewards
Source: Predict Spring

13. • Rich or poor, almost everyone has a
mobile phone in Africa
• Feature phones for the lower end and
smart phones for middle to top end
• Mobile phones are a key promotional
tool for consumer brands in Africa
Mobile Phone and MobileTech as potential drivers of Africa’s
Beauty Industry

14. • Transsion’s Tecno brand dominates
Africa’s smartphone market (130m
units by Dec 2019) (DW.com)
• Tecno cameras are optimised for
African complexions
• Even keyboards are optimised for local
languages
• Smart phones and data in Africa are
reducing
Transsion’s Tecno and Itel brands dominates Africa

15. • Mobile phones as promotional tool as
used by other FMCG brands
• Cheaper smart phone prices offer
opportunities for hi-res images of your
brand
• Leverage growing e-commerce trend
and smart phone functionalities
• Be ready for when personalised beauty
tech becomes cheaper
Mobile Phone Opportunities for beauty brands in Africa

16. • USSD functionalities for feature
phones
• Offer airtime against purchases for the
lower end
• Offer points system and more
expensive offerings to middle to higher
end
• Smart phones will trickle down to lower
end, be ready
Adapting Beauty Mobile Tech to African conditions

17. • Africa is beginning to manufacture
smart phones locally
• Mara Group manufacturing in Rwanda
and in South Africa KZN)
• First Egyptian made smart phone (Nile
X) has plans to export to Rest of Africa
Future of mobile and beauty brands on the continent

18. • Avon Justine (SA’s largest beauty
company) just launched Avon App
• Increase reps productivity and manage
their business better
• Reps will harness power of their
networks through social media
• Product promo notifications
• Orders
Beauty Tech Developments in South Africa

19. Thank you
Mobile : +27 81 487 6785
Email: ray@raychimhandamba.com
Skype: ray.chimhandamba