Personalized Beauty

Part
01
of three
Part
01

Personalized Beauty: Key Players

The personalized beauty space is small but growing, and seems to be intent on disrupting typical sales channels for beauty products, such as department stores, pharmacies and brick-and-mortar retailers. These personalized beauty product providers are not one-stop-shops for hair care, skin care, perfume, and so on, like one might find in a department store; rather, they are focused on providing and tailoring products to the customer in one area, such as skin care or hair care, but not both. As these companies are privately owned, they are not required to list revenues or market share.

Function of Beauty

  • The largest company found in this research was Function of Beauty, which provides tailor-made hair products for women.
  • The company was founded in 2014.
  • Its estimated annual revenues are $2,000,000. This level of revenues makes it a top company within the scope of this research.
  • After first taking a hair care quiz, the company allows customers to choose the color, fragrance and name of their unique hair care formula. The answers are processed and the unique blend of ingredients required for that specific hair type is mixed and delivered.
  • Function of Beauty produces its own products and is online only.

Prose

  • Prose was another personalized hair care company that appeared in several locations during research, thus making it a top company, as hard revenue and market share figures are not available for these upstarts.

Curology

  • Curology is a personalized skin care company whose products fight breakouts and acne, improve skin texture, and reduce signs of aging.
  • Curology was easy to find in several sources, thus since revenues and market share are unavailable, it was considered to be one of the top companies in this personalized segment.
  • The company was launched in 2014, providing only online services.
  • Its revenues are under $1,000,000.
  • Customers must answer a series of questions about themselves, they must take a selfie, and their customized product will be sent to them.

RESEARCH STRATEGY

In a developing market of privately owned companies, finding hard data was a challenge. The first steps taken were to find out what companies are in the market to sell personalized beauty products, meaning products that are tailor-made for an individual. Numerous companies popped up in the Forbes Magazine article from 2018, and also in the Health.com article. Using the companies mentioned in those articles as the starting point, research then focused individually on those firms. After searching specifically for those companies, as well as other companies that popped up in databases along the way, it was found that many of those companies do not actually offer tailor-made products; their focus might be on organic products, or locally sourced products, or "pure" products, but not necessarily on individually concocted products.

Some companies offered "tailor-made" products, but they often ended up being products that were not actually made specifically for a person's individual needs. Thus, the size of the personalized beauty market shrank considerably. Upon further research, some revenue figures were found, although again, as these companies are not publicly listed, they are not required to publish their financial statements. Companies for which revenues numbers are available, that have numerous mentions in various databases and articles in well-respected publications, active functioning websites, and that have products that are truly tailor made, were used as three of the top companies.
Part
02
of three
Part
02

Personalized Beauty: Competitive Landscape

Curology makes customized skincare products for acne, zits, whiteheads, wrinkles, and blackheads. Both Function of Beauty and Prose make hair care products. The competitive landscape of the brands can be found in the attached spreadsheet.

Summary

  • Curology's target audience is 13-29 yr. old women with acne, zits, whiteheads, wrinkles, or blackheads. It is an online-only business with its own manufacturing facility. The personalization quiz questions pertain to goals, area of breakouts, skin type, and use of sunscreen.
  • Function of Beauty's target audience is 18-34 yr. old women in the luxury segment with hair care needs. It is an online-only business with its own manufacturing facility. The personalization quiz questions pertain to hair type, hair goals, appearance and fragrance, and size of the product.
  • Prose targets women of all ages in the luxury segment with hair care needs. It is an online-only business with its own manufacturing facility. The personalization quiz questions pertain to age, texture, type, length, thickness, and condition of hair; hair density, scalp condition, whether suffering from hair loss or not, location of the user, diet, stress, exercise, hair extension, fragrance, and goal of use.

Part
03
of three
Part
03

Personalized Beauty Trends

Trends in the beauty market are rapidly aligning with emerging trends in technological markets. As phone capabilities increase, such as visual scanning technology, advancements in the personalization of makeup and skin care also increases. Users can now scan their face to instantly get a perfect match foundation, or create custom skin care products. They can even take quick skin scans using a personal sensor, to monitor skin health and identify the exact type of skin care product needed.

Personalized Skin Masks

  • A personalized mask, made using technology built into the latest version of the iPhone, that scans the face for both contour and condition. This mask is then 3D-printed with a personalized formula based on six scanned zones, combining ingredients to treat the different regions of the face.
  • Consumers no longer have to choose skin products based off suggestion, they can actively order a personalized formula made for them, with ingredients that work to hydrate, reduce redness, and improve skin appearance, from the convenience of their phone.
  • Johnson & Johnson has combined their Neutrogena skin care line with advancements in 3D-printing, and at the 2019 Consumer Electronics Show, CES, introduced the patent-pending Mask iD, to launch in the third quarter of 2019.

Wearable pH Skin Monitor

  • When choosing skin care products, this small sensor is attached to the skin, and within 15 minutes reads the user's pH level. Identified as an indicator of healthy skin, monitoring pH levels can help to maintain skin health, and prevent conditions such as acne and eczema. This product not only identifies the user's pH levels, it also offers a personalized selection of skin care products to treat their skin type.
  • Although pH sensors are not innovative, new sensor are not only small and quick, they also require a lot less sweat contribution for accurate readings, due to the partnership of L'Oreal's La Roche-Posay brand and John Rogers, PhD, creating of multiple medically driven wearable devices.
  • At the 2019 CES, L'Oreal introduced the My Skin Track pH, the first of its kind to combine wearable sensor technology with customized skin products, and easy access to readings through a phone app, available on most new iPhone or android models. Not only can customers get an accurate pH reading, they will also have access to a selection of fully customized skin care products to fit their personal skin needs.

Foundation Matching Apps

  • Using a phone app, such as slapp, users are guided to take pictures or scans of several regions of their face, getting the best mapping possible. They are then paired with a selection of beauty products that best suit them. With apps that offer immediate matching results, users are no longer stuck guessing or trying different products.
  • Using the MADE-2-FIT app on both iPhone and Samsung Galaxy, BareMinerals is creating custom foundation. This app guides the user through visual scans taken over key regions of the face, and then formulates a unique foundation to match skin tone.
  • Partnering with Techkon, a color measurement solutions company, Avon has also launched an app to customized foundations. Their version applies math based algorithms to color selection, allowing women to no longer wear the wrong shade.

Research Strategy

To kick start research efforts, a google search was conducted to identify articles written in the last year about emerging personalized beauty products, and the article Beauty tech 2019, All about the Personalization, was identified and used as a foundation. While researching the advances listed in that article a trend for beauty technology introduced at the CES arose. Background searches to identify what the CES was indicated that it was a yearly convention for technological innovations, and was "the global stage where next-generation innovations are introduced to the marketplace." With this in mind the next strategy was researching beauty trends in relation to the 2019 CES. Finally, comparison searches were done for the beauty tech listed in the article, reviewing popular publications from the last year for references to these innovations. Articles by popular beauty brands, like Allure and Cosmopolitan, were analyzed for insights and comparison to 2019 CES reports.
Sources
Sources

From Part 02
From Part 03
Quotes
  • "Beauty’s embrace of tech was front and center at 2019’s CES in Las Vegas. "
Quotes
  • "The beauty technology trend of face masks continues in 2019 and Neutrogena has taken mass customization to another level with its Neutrogena MaskiD that it revealed at the CES 2019. "
Quotes
  • "the Johnson & Johnson 3D Printing Center of Excellence program has been advancing 3D printing and bioprinting technologies on many different levels. "
Quotes
  • "When the product launches later in 2019, consumers will be able to use 3-D imaging technology that's built into many of the latest iPhones—such as the iPhone X, XS and XR—with the Neutrogena Skin360 tool to take a high-tech 3-D selfie that creates a topographic map of their face, almost like a sculpture."
  • "For example, if you have fine lines around your eyes, that part of the mask will contain stabilized glucosamine, which helps reduce their appearance. If you have dry patches on your forehead and cheeks, hydrating hyaluronic acid will be placed in those areas. "
Quotes
  • "The My Skin Track pH is a small, flexible patch-like sensor that picks up trace amounts of sweat from your pores and promises an accurate skin pH reading in just 15 minutes."
  • "When your skin's pH level is thrown out of whack, whether from using certain personal-care products or even just from age, it creates an unhealthy environment that fosters harmful bacteria. This triggers inflammation in the body, which, in turn, can lead to skin conditions like eczema, rosacea, and even acne."
Quotes
  • "John A. Rogers, PhD, has created a fleet of wireless, wearable devices that have the potential to change the way physicians collect data and treat patients, from NICU preemies to stroke patients in recovery. "
Quotes
  • "The Personalized Beauty App allows Avon Products Inc. (NYSE:AVP) representatives to use a phone camera and a calibration card to match makeup regardless of customers' ethnicity, skin tone or type, the company said."
Quotes
  • "To get the truest reading of your skin tone, start with a clean face and take the scans under indoor lighting with no direct sun. Begin by steadily tapping the phone camera against a stack of white paper to "calibrate" your phone. "