What does it mean to be a beauty tech company today?

The beauty industry as we know it today would not exist without technology. What we use every day on our skin is based on scientific studies, technological advancements, and continuous discoveries to make products more effective, pleasant, fragrant, and easy to apply. The same logic applies to beauty treatments. Our fillers are increasingly natural, procedures are less invasive, and the machines we find in our trusted beauty centers resemble wonderful spaceships with out-of-this-world effectiveness. Just a few years ago, we could never have imagined this. How are companies responding to these changes?

Beauty tech is all around us

Given this premise, it's impossible not to notice how everything has become more tech in recent years, including beauty, in all its aspects. Products have never been so safe, production processes so optimized and efficient, and online sales sites - aided by Artificial Intelligence - offer us virtual trial experiences and shade matching that make going to a physical store almost unnecessary. Online shopping methods have improved significantly. Not to mention all the devices we can buy and try at home, from laser masks to beds for various treatments, including tanning. Start-ups, as you might expect, are diving headfirst into this new, hybrid, constantly evolving world. They are not alone, but the challenges are numerous.

The open questions mainly concern Artificial Intelligence

During the latest WWD CEO Summit, technology was the star. Nick Howard, who deals with global strategies at EveLab Insight, an artificial intelligence-based skin analysis company, posed a question: where will this type of personalization technology go in an era where we are becoming increasingly fond of digital privacy? The question remains open, as it involves somewhat unpredictable factors - such as user behaviors and AI development - but Howard, while acknowledging a degree of surprise, believes that in 10 years consumers will be able to evaluate all different skin health issues such as colorization, allergies, autoimmune or immune deficiencies just through a photo. According to him, in light of this, brands need to strive more and become capable of better predicting consumer desires and needs with less and less information. A significant challenge and an interesting insight.

L'Oréal's transition

Guive Balooch of L'Oréal explained how he led the company's transition to beauty tech. "If the beauty industry used to be based on chemistry, in the last 10 years we have seen enormous advancements in technology. This mix of technology and science is moving incredibly fast, and consumer demands need to be met and satisfied." According to him, a beauty company that wants to keep up with the times - surpassing the boundary between cosmetics, beauty, and tech - must commit to making technology the driving force behind all future business developments, even from an organizational perspective, with resilience, investments, and a deep understanding of what's happening in the sector.

Consumer needs remain at the center

Another key to the success of a beauty tech company is focusing on consumer needs, which must be central even before technology, and actually drive it in its new creations to solve real and present problems. Balooch cites L'Oréal Paris Colorsonic as an example, a device billed to make hair color easy to use at home by automatically mixing and depositing formula at the roots with just one click. It took 8 years to develop. Another insight? According to Balooch, personalization will be the future of the beauty industry: "Everyone wants to have the perfect product that takes into account their environment, needs, and lifestyle. We call it precision beauty, and it's the next frontier." How is it achieved? By studying and measuring. The group has just started a clinical study in collaboration with Verily to track 10,000 people over four years to see if it’s possible to unlock some of the biomarkers showing whether a beauty product is right for an individual user.

And what about small brands?

From this examples alone, one might wonder: which companies and groups will be able to afford this transition? Developing new technologies is challenging, requiring investments, collaborations, failures, and a range of maneuvers that start-ups may not always be able to afford. What if this move towards technology further narrows the field for small brands? We'll see, but let's prepare for a future of beauty increasingly resembling a sci-fi movie.