Transcript

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

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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

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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]

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[email protected]

[email protected]

[email protected]

[email protected]

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


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