The document discusses trends in the global beauty market and the convergence of beauty and technology. It notes that the global beauty market has grown steadily over the past decade to $239 billion in 2014, with Asia-Pacific making up 35% of the market. It then outlines 15 emerging trends in digital beauty, including facial mapping, magic mirrors, color matching apps, social media influencing, at-home devices, genetic testing, biotech applications, 3D printing of cosmetics, and on-demand beauty services. The trends reflect the growing intersection of beauty, science, and mobile/digital technologies.

1. 1
April 30, 2015
DEBORAH WEINSWIG
Executive Director – Head of Global Retail & Technology

2. Beauty Retail & Technology
AppS
Displays
Augmented
Reality
PCS
Gaming
Beauty
Science
Technology
Beauty

3. 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)

4. 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

5. 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

6. The Convergence of Digital Beauty
2. Magic Mirrors
• Attracting customers with visual
suggestions and options
• Expediting the fitting-room process
• Theft protection
• Data collection

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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!