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DEBORAH WEINSWIG Managing Director, Fung Global Retail & Technology [email protected] US: 646.839.7017 HK: 852.6119.1779 CHN: 86.186.1420.3016 JUNE 14, 2016 Mobile Apps Transforming Beauty Shopping Mobile technologies have revolutionized how consumers search for, try on and shop for beauty products and services. Beauty brands have gained traction by using smartphone applications to engage consumers and introduce products, as well as enhance the in-store shopping experience. Smart devices are functioning as personal beauty consultants, enabling consumers to virtually try on products and analyze their own skin. Users can even schedule on-demand beauty services and virtual consultations with dermatologists via mobile apps. Source: Modiface.com
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Page 1: Mobile Apps Transforming Beauty Shopping - fbicgroup.com Take on Mobile... · Mobile Apps Transforming Beauty Shopping ... colors of Maybelline’s Color Show Nail Lacquer. ... profile.

D E B O R A H W E I N S W I G M a n a g i n g D i r e c t o r , F u n g G l o b a l R e t a i l & T e c h n o l o g y d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m U S : 6 4 6 . 8 3 9 . 7 0 1 7 H K : 8 5 2 . 6 1 1 9 . 1 7 7 9 C H N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

JUNE 14, 2016

Mobile Apps Transforming Beauty Shopping • Mobiletechnologieshaverevolutionizedhowconsumerssearchfor,tryonandshopforbeauty

productsandservices.

• Beautybrandshavegainedtractionbyusingsmartphoneapplicationstoengageconsumersandintroduceproducts,aswellasenhancethein-storeshoppingexperience.

• Smartdevicesarefunctioningaspersonalbeautyconsultants,enablingconsumerstovirtuallytryonproductsandanalyzetheirownskin.Userscanevenscheduleon-demandbeautyservicesandvirtualconsultationswithdermatologistsviamobileapps.

Source:Modiface.com

Page 2: Mobile Apps Transforming Beauty Shopping - fbicgroup.com Take on Mobile... · Mobile Apps Transforming Beauty Shopping ... colors of Maybelline’s Color Show Nail Lacquer. ... profile.

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JUNE 14, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

EXECUTIVESUMMARYSmartphonesarethehubofourdigitallivestoday.Enablingeverythingfrommobileshoppingtoentertainmenttoinstantmessagingtoaugmentedreality,mobiletechnologieshaverevolutionizedhowwesearchfor,tryonandshopforbeautyproductsandservices.

Beautybrandshavegainedtractionbyusingsmartphoneappstoengageconsumers,introduceproductsandenhancetheshoppingexperience.Inaddition,appshavehelpedbeautybrandscollectdataaboutusers’preferencesandbehavior.Andtherehasbeensignificantgrowthinmobilebeautyappusageoverthepastfewyears.AccordingtoEuromonitorInternational,e-commerceandm-commerce(salesmadeviaappssuchasInstagramandsocialmediasitessuchasTwitterandFacebook)arethefastest-growingretailplatformsglobally.In2015,theytotaled6.4%ofsalesinthebeautyspace.

Technologicaladvancesmeanbeautyappscannowbeusedaspersonalbeautyconsultants,enablingconsumerstovirtuallytryonproductsandanalyzetheirownskin.Consumerscanalsoscheduleon-demandbeautyservicesandvirtualconsultationswithdermatologistsfromtheirmobiledevices.Inthisreport,weexaminethelatestdevelopmentsinbeautyappsandhowtheyaretransformingbeautyshopping.

Facial-MappingandAugmented-RealityTechnologiesBeautyproductcustomizationisagrowingtrend,andthenumberofappsthatallowconsumerstovirtuallytryonproductsandanalyzetheirownskinhasgrownrapidly.ModiFaceisaToronto-basedcompanyprovidingaugmented-realitytechnologyforthebeautyindustry.Thecompany’spatentedtechnologycanshowmakeup,hair,skinandantiagingchangeslivein3D.ModiFaceclaimsthatitstechnologyisusedinmorethan150onlineandmobileappsthathavebeendownloadedmorethan60milliontimes.

ModiFaceisafacial-mappingandbeautypioneer,anditlaunchedtheVogueMakeupSimulationiPhoneappin2013.TheappenablesuserstovirtuallytryonhundredsofcosmeticproductsfrompopularbrandssuchasAddiction,Chicca,Clinique,EstéeLauder,RMK,ShiseidoandShuUemura.Oncetheuserisdonewithhervirtualmakeover,shecanpurchaseproductsonherphoneorsharetheresultsviaFacebook,Twitteroremail.InMay2016,ModiFace,unveileditsmedicalARtechoffering,whichincludesskinhealthanalysis,heartbeatvisualizationanddermalmeasurement—extendingitscapabilitiesintomedicaluse.

Facialmappingandaugmentedrealityhavebeenusedinhaircareandnailcareaswell.Lastyear,VidalSassoonlauncheditsVSShadeapp,whichallowsuserstovirtuallytryonhairstyles.Onceausersnapsaphotoofherselfanduploadstheimage,shecanvirtuallytryon24differentshadesofhaircoloringofferedbythebeautybrand,andseehowthecolorwouldlookonherbeforeshebuys.HairColorbyModiFaceisafreeappdownloadthatalsoallowsuserstoimaginewhattheywouldlooklikewithadifferenthaircolor.Anditdoesnotjustoverlayapreconfiguredhairstyleontothephoto.Usersuploadaselfie,traceahairstyleandthenchoosefromover30stylesinblonde,redorbrunette.

ForitsMatrixbrand,L’OréalteamedupwithGoogleGlass(whichiscurrentlyonhiatus)toprovidein-depthhairstylingtutorialsfromstylists.ColoristMadisonReedoffersavoice-operatedvirtualrealityappthatletsusersshopforthebesthaircolorandguidesthemthroughtheprocessofeithertouchinguptheirgrayhairorperformingasalon-qualitycoloring.AndMaybellinepartneredwiththemakersofUK-

Source:ModiFaceApp

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JUNE 14, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Source:SkinBetterApp

basedimage-recognitionandaugmented-realityappBlippartoletconsumersvirtuallytryondifferentcolorsofMaybelline’sColorShowNailLacquer.TheappalsoletsuserstakeaphotoandsharetheirresultsonFacebook,TwitterandPinterest.

SmartphonesDoubleasPersonalBeautyConsultantsSmartphoneappstodayarecapableofconductingskinanalysis,makingproductrecommendationsandperformingvirtualcosmetictesting.In2014,L’OréallauncheditsMakeupGeniusapp,whichturnedasmartphoneintoamagicmirror.TheappallowscustomerstoseeL’Oréalproductsandviewtheminvideoinrealtime.Thistechnologyisastepforwardfrompreviousmakeupsimulatorsthatdisplayedproductsonstaticpictures.TheMakeupGeniusappreliesonapatentedtrackingalgorithmsystemthatenablesprecisefacialrecognitionviaalivemirrorcamera.Itcancapture64facialpointsandupto100expressionswhiletrackingheadmovementsofupto60degrees.L’Oréal’sMakeupGeniusapphasbeendownloaded6.3milliontimes.

InApril2016,CoverGirlenteredtheaugmented-realitygamebyintroducingitsBeautyUapp.BeautyUusesfacialscanningandtrackingtoidentifyusers’skintonesandapplymakeuplooksinrealtimeusingafront-facingcamera.Togetasenseoftheindividualuser’spreferences,BeautyUusesamobileconsultationtoaskaseriesofdetailedquestions,suchas“Whatisyourskintype?”;“What’stheonemakeupitemyoucan’tlivewithout?”;and“What’syouridealgirls’nightout?”Itsfeaturesfocusonutilityaswellaseditorialcontent,andtheapphasutilizedinfluencerssuchasKatyPerryandSofiaVergara.Theappwas1.5yearsinthemakingandwasadesigncollaborationbetweeninternalandexternalpartners,includingGirlsWhoCodestudents,whorepresentedthecollege-ageddemographic.

BeautymagazineAllureteamedupwithdeveloperSkinBettertocreateanappthatappliesdermatologist-

gradescanningtechnologytoidentifyskinproblems.Theuseruploadsaselfieandanswersabriefquestionnairedevelopedbyadermatologist.Theappthenanalyzesthephotoandtheuser’sanswerstoidentifyskinconditionssuchaswrinkles,spotsandredness.Theresultsareavailablewithinseconds.Afterprovidingapersonalskinanalysis,themobileapprecommendsproductsbasedontheindividual’sneeds.

Visadaisanotherinnovativeappthatmakesuseoffacialrecognitiontechnology.UsersuploadaselfietotheVisadaapp,andtheapp’scomputervisiontechnologycreatesapersonalized,comprehensivebeautyprofile.Theappevaluatestheuser’sskinandeyecareneeds,andofferssuggestionsforimprovements.Asformakeupandhair,Visadaalsooffersproductsuggestionsinspecificcolorsandshadestohelpusersperfecttheirbeautyroutines.Inaddition,Visadaprovidesapersonalizednewsfeedthathelpsusersstayinformedaboutthelatestbeautytrendsandnewsfromtopbeautyinfluencersandexpertsworldwide.

Source:MakeupGeniusApp

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JUNE 14, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

WhenColorMatchingCollideswithSmartphoneAppsForshopperswhodonothavetimetogotothemakeupcounter,IMANCosmetics,thepremierlineofmakeupandskincareforwomenofcolor,hasdevelopedanappthatdeterminesauser’s“colorsignature.”Theappusespatentedcolor-matchingtechnologytoanalyzethecoloroftheuser’seyes,hair,skinandlips.Afterananalysis,theappofferscustomizedproductandlookrecommendationstomatchtheuser’scomplexionandstyle.

NailcarebrandOPIlaunchedtheGwenforOPIapp,whichallowsuserstovirtuallytryonanynailpolishcolorfromitscollectionandanynailaccessorycombination.Throughtheapp,userscanselectavirtualhandthatmatchestheirskincolorandnailshape.Iftheyaresatisfiedwiththeproduct,theycanusetheapptofindanearbymanicurist.AccordingtoSephora,theaveragewomanbuysthewrongcoloroffoundationseventimesbeforeshefindstherightone.Inordertohelpcustomersbuytherightmakeup,SephoracollaboratedwithstartupMapMyBeautytolaunchthePocketContourapp.Byusingaproprietarybeautyanalysisandmakeup-mappingtechnology,theappidentifiestheuser’sfaceshapeandanalyzesthesymmetryofherfacialfeatures.Basedontheanalysis,usersreceivepersonalized,step-by-stepmakeupapplicationinstructionsalongwithproductrecommendations.Theappaddressesthechallengingtaskofcontouringandprovidesscientific,individualizedguidanceonhowtoapplyanymakeuplook.

BeautyAppsAreRedefiningtheIn-StoreShoppingExperienceMobilebeautyappsareusingnewtechnologiestoredefinethein-storeshoppingexperience,too.Virtualrealityandaugmented-realitytechnologiesenablemorecustomizationandtheopportunityforbrandstoengagecustomersviagamification.Sephoraisapioneerinadoptingnewmobiletechnologiesthatenhancethein-storeshoppingexperience.InApril2015,thecompanylauncheditsfirstaugmented-realityinitiativeforshoppersviatheSephoratoGomobileapp.Consumerscaninteractwithcustomcontentontheappbyhoveringoverthefacesofninebeautybrandfounders,includingLauraMercier.Whentheuserscansafounder’simageontheapp,contentoptionssuchasinterviews,productvideos,YouTubeplaylistsandproductpagespopup.Theappmakesin-storeshoppingmorefunwhilealsoenablingshopperstofindtheinformationtheyneedwhentheyareinSephora’sstores.Additionally,Sephoraplanstorolloutbeaconsinitsstorestodelivermorecustomizedinformationtoshoppers,suchasbirthdayalertsandloyaltyprogramdetails.

InJune2016,superappYouCamMakeuphitthe100milliondownloadsmarkonGoogleplay,andithasbeendownloaded250milliontimesglobally.YouCamVirtualMakeover&BeautyStudioallowsuserstotryonmakeupwithanaugmented-realitytechnologywithsmartdetectionandrealisticresults.Ithasearnedover1.27millionfive-starreviewsandisoneofthetopGooglephotographyapps.

Source:YouCamApp

Source:Sephora.com

Source:OPIApp

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JUNE 14, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

BeautyonDemandMobileappsenablebeautyserviceproviderstooffertheirtreatmentsanywhere,anytime.Forexample,theBeautifiedappallowsusersintheUStosearchfornearbysalonsandbooklast-minuteappointmentsusinggeolocation-basedtechnology.Itwaslaunchedin2013andisavailableinNewYork,LosAngelesandSanFrancisco.

AmericanbeautyservicecompanyVênsetteistheUberofbeautyservices.AfterauseranswersafewquestionsaboutmakeupandhairstyleinspirationsonVênsette’swebsiteormobileapp,thecompanyfindsaprofessionalstylistwhocangototheuser’shomeorofficewithinafewhours.On-demandbeautyappTheGlamAppallowsuserstochoosestylistsbasedontheirlevelofprofessionalexperience.Thestylistsprovidehair,nailandmakeupservicesoftheirhomes.

Differentfromotheron-demandbeautyapps,thePRIVappisafull-serviceplatformforbookingat-homebeautyandwellnessappointments.Userscanarrangeappointmentsforalltypesofbeautyservices,includinghaircutsandblowouts.

VirtualSkincareConsultation

Consumerscanalsonowusemobileappsforvirtualconsultationswithdermatologists.TheSpruceappallowsuserstobookdermatologistappointmentsandvirtualskincareconsultationsviasmartphone.Userscansharetheirinformation,skinissuesandphotoswithacertifieddermatologist.Within24hoursofsubmittingtheirmedicalinformation,theycanreceiveapersonalizedskincaretreatmentplanandprescriptions.Theappallowsuserstogettreatmentforskinconditionswithouthavingtovisitadermatologist’sofficeinperson.Sprucerecentlyreceived$17millioninfundingfromGV(formerlyGoogleVentures)andotherventurecapitalfirms.

ConclusionThankstothecontinuousevolutionofmobileapplicationsandtechnologies,smartphoneshavebeentransformedintobeautyexperts.Beautyappsnowallowuserstovirtuallytryonproducts,analyzetheirownskinandevenvirtuallymeetwithadermatologistforaconsultation.Allofthesenewdigitalbeautyservicesarenotonlyenhancingconsumers’shoppingexperiences,butalsoenablingthemtomakesmarterpurchasedecisions.

Source:SpruceApp

Source:VênsetteApp

Page 6: Mobile Apps Transforming Beauty Shopping - fbicgroup.com Take on Mobile... · Mobile Apps Transforming Beauty Shopping ... colors of Maybelline’s Color Show Nail Lacquer. ... profile.

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JUNE 14, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@[email protected]

MarieDriscoll,[email protected]

JohnHarmon,[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

HONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988FBICGROUP.COM