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Research Outline
Prepared for Deleted 5. | Delivered July 30, 2020
Cosmetic Companies' Digital Transformation/AI Adoption
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Goals
To provide case studies of digital transformation or AI adoption by cosmetic companies. The case studies will inform market research.
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Early Findings
Estee Lauder
Estee Lauder has introduced virtual services such as the "
30 Shades of Lipstic
k in 30 Seconds." This and other campaigns are part of the company's embrace of the industry's increasing adoption of technology.
S
o
w
m
y
a
G
o
t
t
i
p
a
t
i
, the company's Vice President of Global Brand Technologies, says that her job is to i
dentify and champion such technologies
, helping re-imagine how consumers can experience, buy, and use beauty products from the company's brands such as MAC and Too Faced.
The lipstick try-on service has been made possible through the company's partnership with A
rtificial Intelligence and YouCam Makeup.
E
s
t
e
e
Lauder continues l
ooking for new ways
to use the virtual try-on approach for lipsticks to other products to boost overall performance. These experiences are deemed important by the company now that few customers can travel to department stores to test makeup and fragrances because of the COVID-19 pandemic.
The company is also deploying tech behind the scenes such as
new data analytic
capabilities for launching and refining consumer engagement, leveraging in-store experiences, and marketing channels.
Over the next few years, Estee Lauder is planing to expand
o
m
n
i
-
r
e
t
a
i
l
capabilities,
develop futuristic distribution
and manufacturing centers, and make use of predictive analysis for the optimization of supply and demand planning.
The company is also piloting
AR glasses
in manufacturing facilities to enable employees to perform activities using remote instruction through the glasses.
E
s
t
e
e
Lauder is planning on developing a new digital paradigm that is
here to stay,
enabling it to adapt accordingly.
MAC, one of the company's brands, has a try-on that has experienced a "
threefold increase in consumer engagement
" during the pandemic. The fact that these
t
r
y
-
o
n
s
have no residues left from testers makes realistic AR for the company a game-changer for color cosmetics.
E
s
t
e
e
Lauder revealed that in June 2020, usage of the virtual try-on tool on the website increased by
133%.
In summary, the company continues to integrate AI and AR technologies to improve customer experiences across
all digital touchpoints.
These include:
The
e-commerce website.
Virtual try-on.
The
YouCam Makeup app
that allows customers to browse, shop, and experiment internally through the private education channel. Brand and beauty advisers can also stay updated about launches and news.
Summary of Early Findings
Our first hour of research was spent scanning for information surrounding digital transformation and AI adoption by cosmetic companies and beauty brands to determine whether the information is publicly available, which it is.
In the early findings, we have provided a case study of Estee Lauder.
We can continue with research and provide more case studies. Please select one or more of the options provided in the scoping section below.
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