Author: 
Perfect Corp. recently held a Global Beauty Tech Forum with industry experts on artificial intelligence (AI) trends in the beauty industry and how AI is changing consumer engagement. Expert panelists included:
- Ian Michael Crumm, celebrity esthetician (moderator)
- Theresa Cowing, Tarte’s VP of eCommerce
- Anna Mayo, Nielsen IQ’s VP in the Beauty Vertical
- Sarah Potempa, Founder and CEO of Beachwaver Co.
- Yarden Horwitz, Co-founder of Spate
This session explored the latest consumer research around the newest AI technology and how mega beauty brands are incorporating beauty tech in 2024 and beyond to increase consumer engagement.
TikTok Shop, Beauty Tech, and Consumer Engagement Trends
Anna Mayo from Nielsen IQ — which sees over $100 billion in sales across beauty and personal care — says the organization stays up to date on how consumer shopping and the retail landscape are changing with the introduction of new innovations. This knowledge helps beauty brands improve their consumer engagement strategy.
TikTok Shop is a significant player despite barely being around for a year. Mayo says it’s proving to be the fastest-growing beauty retailer ever. It sits at number nine in the U.S. for beauty and wellness ecommerce retailers, while it's number two in the UK for cosmetics and in China for personal care.
Beauty is the top category for sales on TikTok Shop, and under that umbrella, vitamins and supplements are the best-selling products, followed by skincare, lip cosmetics, and fragrances.
TikTok appeals to younger and more diverse shoppers, but this platform also drives sales from older consumers; brands can reach across demographics in this space, Mayo says. It isn’t just for young people. Consider how certain products aren’t sold anywhere else, which helps explain why sales are soaring.
Shared Materials by Strapi
*Adjust the size of images ONLY. Please go to Strapi to edit the materials info.
How Brands Can Leverage AI To Keep Up With TikTok Consumers
It isn’t easy to keep up with the TikTok consumer, as numerous videos are uploaded daily, and new trends are taking off all the time. To stay current, data has become even more valuable. Understanding what users are viewing and seeing online is key.
However, instead of having someone manually view what’s trending, brands can use generative AI and tap into that information. Generative AI can even provide summaries of post comments so brands understand the conversations around products and trends.
Yarden Horwitz from Spate says their platform currently has this generative AI comment summarization feature in beta, helping them save time when reviewing trends and understanding customer engagement.
Spate is a machine-learning platform that relies on AI to predict the next big consumer trend. Over the last decade, the platform has already uncovered trends — before they became trends — such as turmeric and face masks.
Spate also focuses on TikTok and Google data to understand how customers make decisions. They’re experimenting with convergence scoring, examining how TikTok and Google overlap. How are consumer behaviors converging? Are they similar or different? This information provides valuable insights to brands.
How Tarte Leverages Social Commerce To Connect With Consumers
Tarte Cosmetics is a leading beauty brand providing high-performance natural makeup, with customers known as “Tartelettes.” The brand already uses new tech to help customers find their perfect makeup match, and they were one of the first brands to join TikTok Shop in 2023.
Tarte has been a social-first brand since its founding. On TikTok Shops, Tarte has seen over 250,000 purchases of its best-selling trio. Over 90% of Tarte's TikTok Shop customers are new to the brand, so the company has proven it can broaden its reach. TikTok Shop also drives over 50% of the growth of Tarte's direct-to-consumer channel (year-to-date).
Theresa Cowing from Tarte says their technology strategy is closely tied to their brand strategy and features two key components:
- Flexibility: Beauty brands need to pivot with trends, even trends that shift within a moment during a campaign. The Tarte team learned that lesson during their recent Cyber Week, which drove record-breaking revenue and new customer acquisition.
- Innovation: As increased sales drove more traffic, Tarte’s call volume skyrocketed during that week, too. The customer service team saw triple the number of contacts but reduced call handling time by 50 by leveraging AI tools.
Consumer Engagement Through AR and AI
Sarah Potempa invented the Beachwaver, a rotating curling iron that brings celebrity hairstyles to the masses. Founded 12 years ago, the brand is still female-owned and independent. Beachwaver’s mission is to empower women to feel connected with their hair and ensure they have the tools to get their desired looks. The brand prioritizes innovation, with 12 patents, 21 trademarks, and nine patents pending.
Social engagement is critical for Beachwaver. The brand has used TikTok for an ongoing packing show, which has seasons like a reality TV show. And it's using AI and social media to film an avatar of Potempa that can answer questions in real time.
Potempa says hair has always been challenging for the consumer, which is why she started the company. Now, people want more information than ever — and they want it live. Beachwaver is proof that brands don’t need a lot of equipment. They just need a phone and a livestream, and people will come.
Beachwaver incorporates augmented reality (AR) and AI to let consumers "try on" different hairstyles and colors. Using a simple app, customers can try on the “Potempa Pink” hair color or see what they would look like with bangs before going to the salon. These AR experiences engage customers in fun ways.
Shared Materials by Strapi
*Adjust the size of images ONLY. Please go to Strapi to edit the materials info.
AI Pitfalls for Beauty Brands To Consider
Many beauty brands — and brands in general — think that since they can generate so much content with AI, they should. However, the panel advises brands not to latch onto every new trend. They don’t have to create content for everything just because they can.
The more important takeaway is for brands to continue being authentic to their mission, creating content relevant to their purpose and customer base.
Another tip is to make sure the entire team is using AI, even in simple ways. AI should be incorporated across the business, from drafting emails to setting up meeting notes to marketing. With the behind-the-scenes components supported with AI, teams can work faster, putting time and energy into tasks that require human intel.
How AI and Other Technology Will Continue To Evolve
Trends in the beauty industry happen quickly. TikTok Shop is a good example, with the brands that jumped on that platform first being rewarded. However, brands need to be diligent about what will work for them and be able to leave other tools behind.
With tools like AR and virtual try-ons, customers can lean in and rely on immediate testing. These technologies make people feel more comfortable with how they look or the purchase they want to make. They also foster a sense of community because consumers don't feel like they are trying new things alone. AR and AI present unique opportunities for brand connection and education.
In the data realm, many tools are already available that use AI to answer customer questions immediately, increasing customer engagement. In the next few years, younger generations like Gen X and Gen Alpha will dictate much of what happens in the beauty world.
To watch the full panel session visit, https://www.perfectcorp.com/business/global-beauty-tech-forum/detail/195
Brands can transform how their customers shop with Perfect Corp., the leading SaaS AI and AR beauty solutions provider. Get expert advice from Perfect Corp. and get ahead of the beauty tech trends. Start a free trial or contact us for details on beauty tech solutions trusted by over 600 brands globally.
Shared Materials by Strapi
*Adjust the size of images ONLY. Please go to Strapi to edit the materials info.
Read our “Beauty Tech: The Complete Guide” to unlock powerful ROI secrets.
