With the recent surge in e-commerce and a consumer reluctance to visit physical stores due to pandemic-related safety concerns, brands and retailers need to rethink how they can entice consumers back to brick-and-mortar locations in a post-crisis world. To do this, we are seeing the global beauty industry launch innovative store formats and turn to technology to offer convenience, increase sales and drive consumer excitement. This Coresight Research x CEW report presents select examples of such innovations including:
- Beauty companies including MAC Cosmetics and Shiseido are utilizing different technologies—including digital wristbands and QR codes—to keep track of consumers’ offline shopping journey, build customer profiles and implement personalized marketing to increase conversion.
- Augmented reality (AR) and virtual reality (VR) technologies facilitate a contactless and frictionless shopping journey in pandemic-impacted environment, reducing consumer caution about returning to stores. Virtual try-ons are becoming a must-have to provide consumers with an alternative to physically trying on beauty products.
- Experiences are one way for beauty brands and retailers to attract consumers back to stores. In-store innovations that we are seeing in China—which we expect to gain traction in the US amid Covid-19 recovery—include gamification features, livestreaming or entertainment events, social media- stations, beauty classes and other add-on services.