The beauty industry is undergoing a significant transformation as artificial intelligence and the metaverse intersect. We find out more at Cannes Lions. The beauty industry is on the verge of a transformative change as artificial intelligence (AI) and the metaverse join forces. New technologies are already reshaping customer interactions with beauty brands, ushering in immersive and personalized experiences. Shiseido — the famous Japanese beauty brand and parent company of brands including NARS, Drunk Elephant, and Tory Burch — is a prime example of the future of the industry. From virtual makeup try-ons and AI-driven products to augmented reality applications, tomorrow’s beauty is “alive and well,” says Angelica Munson, Shiseido’s chief digital officer, adding that AI technologies are “already ingrained” in their processes. integrated”. By using AI, Shiseido is not only fueling its own research, but also empowering consumers to anticipate and address skin care concerns before they become problems.

The beauty industry is undergoing a significant transformation as artificial intelligence and the metaverse intersect. We find out more at Cannes Lions.

The beauty industry is on the verge of a transformative change as artificial intelligence (AI) and the metaverse join forces. New technologies are already reshaping customer interactions with beauty brands, ushering in immersive and personalized experiences.

Shiseido — the famous Japanese beauty brand and parent company of brands including NARS, Drunk Elephant, and Tory Burch — is a prime example of the future of the industry.

From virtual makeup try-ons and AI-driven products to augmented reality applications, tomorrow’s beauty is “alive and well,” says Angelica Munson, Shiseido’s chief digital officer, adding that AI technologies are “already ingrained” in their processes. integrated”.

By using AI, Shiseido is not only fueling its own research, but also empowering consumers to anticipate and address skin care concerns before they become problems.

The company’s longest run of success began in 2019, when Shiseido launched a groundbreaking collaboration with ReVive – a leading innovator in AI/AR experiences.

AI as a skin advisor

The companies introduced a state-of-the-art AI tool known as Skincare Advisor.

A simple selfie and interactive questionnaire can set beauty goals, and empowers a Skincare Advisor to comprehensively analyze a user’s complexion and ultimately provide a list of recommended products that best suit the user’s individual needs.

“Your undertone is warm, your complexion is olive, your face shape is long,” the software ends after analyzing a selfie—which it commits to deleting immediately—before offering a tailored proposal.

Finally, the AI-powered advisor – available both online and in physical stores – allows for virtual try-ons, allowing users to virtually try out products before choosing, for example, their ideal lipstick shade.

Shiseido describes it as a tool “to enable a discourse between the consumer and the personal beauty professional”, providing alternatives to customers who may feel more comfortable trusting technology.

The company is currently working to identify insights from user-generated content in both social media and the metaverse to inform their decisions about which products to offer, such as “small batch production of customizable colors”. Munson said.

Beauty in the Metaverse: An Ocean of Insight

As users create their own digital avatars and choose how to present themselves to the online world, the metaverse also offers a significant opportunity for beauty brands, Munson says.

“The metaverse is under construction, and amazing pilots and experiments are happening to get us into that Web3 future, but we have seen a lot of traction on users adopting certain experiences and technologies,” he said.

Shiseido has already deployed “more than 20 Metaverse activations across our color brands and skincare brands,” positioning itself “at the forefront of that experimentation.”

Makeup’s digital assets are alive, claims Munson.

“We have some activations where people are buying lip color or eyelashes, you know, merch and gear, and they’re really expressing themselves that way,” she said.

“I think the opportunity in the future is how you take [this] — and we see this with fashion brands, where people are co-creating or creating something, and then it’s being sold as real life.

“I think that bridge is where beauty is going to be experimenting next,” she predicts, identifying “what’s interesting” to people and ultimately figuring out “how you can create that product in real life.” Can you?”

NFTs are also seen as an opportunity for brands, especially as a means of getting closer to Gen Z.

In 2022, the beauty market is expected to generate approximately $430 billion (€394 billion) in revenue. Today, the industry is on an upward trend across all categories – skincare, fragrance, makeup, and haircare – and is projected to reach approximately $580 billion (€531 billion) by 2027, according to the recent State of Fashion reports by McKinsey.

Consumers, particularly the younger generation, will drive this change, and the influence of Gen Z is identified as a “key dynamic”.

Gen Z is the world’s next biggest generation, and according to Adecco Group, 62 percent of Gen Zers have heard of the Metaverse, and 46 percent of them believe it will be part of their jobs in the future.

nft campaign

In February this year, to celebrate its 150th anniversary, Shiseido launched a campaign to give away 150 NFTs.

The NFTs were created using AI technology, which used a language processing system to transform words related to beauty and Web3 into artistic creations, which were then interpolated by Cult, a Web3 agency based in the United Kingdom. To add a human element to the process.

Owners of the NFT were promised £1,000 (€1172) worth of skincare products and samples throughout the year, exclusive access to online and in-person events, and additional rewards as the program developed over time.

Additionally, Shiseido has partnered with NFT Platform Exclusive, which facilitates the creation of a wallet for consumers, enabling even those without prior knowledge of NFTs and Web3 to participate in the campaign.

Shiseido’s approach is focused on strategically integrating AI tools, says Munson, ensuring they serve a purpose and enhance the customer experience, rather than just becoming a gimmick.

As technology continues to advance and consumer preferences evolve, the integration of AI and the metaverse with the beauty industry will become even more prevalent.

Brands now face the challenge of balancing innovation and brand identity, said Euronews Next Chief Digital Officer at Cannes Lions, the annual international festival and awards ceremony that celebrates creativity in advertising.