The funding, co-led by Fika Ventures and Underscore VC, will help Hue expand its presence in the cosmetics and personal care space by delivering authentic video content aimed at increasing e-commerce conversion rates. is completed.
Hue’s funding announcement is especially important for manufacturers and suppliers in the beauty industry as digital engagement becomes increasingly important. We spoke to Janvi Shah, CEO and co-founder of Hue. He said, “This funding will not only accelerate our growth in beauty and wellness, but also expand our reach into apparel, accessories and footwear.”
The company plans to use the majority of the funding to expand its engineering and sales teams, and further develop its video technology platform for brands and retailers.
Tackling conversion challenges with AI-powered personalization
Cosmetic brands today are under pressure to differentiate their products in an increasingly crowded digital marketplace. Hue’s platform directly addresses this challenge by delivering AI-powered user-generated video (UGV) content that personalizes the shopping experience and mirrors in-store interactions.
Shah said, “Hue’s AI-powered platform addresses low conversion rates by incorporating authentic user-generated videos into the online shopping experience, which is especially valuable for beauty brands.” I explained. Shah said the platform tailors content to each consumer, showing them “relevant videos that highlight real-world results and product benefits,” ultimately driving conversion rates of up to 25%. This will increase engagement on the site and extend engagement with the site.
For brands in the personal care space, such as skincare and cosmetics, where consumers prioritize authenticity, Hue’s platform provides a unique way to present authentic customer experiences, which in turn builds trust. Hue addresses the growing “authenticity gap” in digital marketing by showcasing content from everyday users.
Success story: Strengthening engagement with key brands
Shah acknowledged that early adopters in the beauty industry, such as Laura Geller Beauty and Tatcha, have reported great success with Hue’s platform. For example, Laura Geller Beauty saw a 5.3% increase in conversion rate and a 2.6% increase in revenue per visitor after integrating Hue’s shoppable video.
Gladys Castro-Rezabek, vice president of e-commerce at Laura Geller, said in the company’s press release: “Hue has helped us increase the average order value for our brands, especially through product bundling. Through A/B testing, we saw a significant increase in conversions and sales, and based on the results, We are currently expanding our Hue solution.”
Skincare brand Tatcha is also benefiting from Hue’s technology, with plans to expand Hue’s video solution across its website. “Integrating Hue’s video technology has proven to improve Tatcha’s client experience,” said Andrea Carver, Tatcha’s senior vice president of DTC and technology, in a company press statement. Masu.
“Through A/B testing, we saw a significant increase in conversions and sales,” she shared, adding, “The customer journey has improved, and we will continue to add Hue to more touchpoints on Tatcha websites.” “We will continue to integrate video technology from across the world,” he added. Support product discovery and education. ”
Key metrics for evaluating UGV integration success
For beauty brands looking to measure the impact of user-generated video content, Shah emphasized focusing on metrics like increased conversion rate, engagement time, and ROI from video-driven sales. “Tracking individual video and creator performance metrics is essential, allowing brands to identify top-performing creators and optimize video placement to maximize engagement and conversions.” explained Shah.
Additionally, Hue’s personalized approach allows brands to effectively cater to specific audience segments. The platform increases relevancy by matching content creators to customer demographics such as age and skin type, facilitating deeper connections with target customers.
This is especially beneficial for brands that cater to specific demographics, like Laura Geller Beauty. Laura Geller Beauty used Hue to reach women over 40 by collaborating with creators who truly represent this age group.
Industry Trends: Meeting the Demand for Authenticity and Personalization
As competition intensifies in the beauty and personal care space, trends like authenticity and personalized marketing are coming to the forefront. “Consumers, especially Gen Z, increasingly want to hear from real people rather than influencers, and are seeking authentic experiences that reflect their own identities and needs,” said Shah. says.
Hue enables brands to integrate this authenticity into their content and deliver relevant stories that build trust.
Hue’s AI also powers product discovery and education by matching customers with creators who share similar beauty concerns, such as skin type and tone. “Hue creates a more relevant and engaging shopping experience by tailoring video content to each individual shopper’s preferences,” said Shah. It’s especially worth it.
In the long run, this approach increases product satisfaction and promotes customer loyalty by reducing return rates.
Supports clean beauty with transparent UGV
Clean beauty brands that prioritize transparency and ethical practices also stand to benefit from Hue’s platform. Hue supports the clean beauty movement’s focus on integrity by featuring user-generated content that highlights ingredients and sustainable packaging.
For example, SOSHE Beauty used Hue’s platform to introduce refillable packaging, a message that resonates with eco-conscious consumers. This approach aligns with clean beauty values and strengthens Hue’s ability to help brands in this space connect with consumers’ ethical preferences.
Hue’s recent funding is notable for cosmetics and personal care brands looking to succeed in a digital-first world where authenticity is paramount. Hue’s AI-powered platform prepares beauty brands to meet the evolving expectations of today’s online shoppers by driving engagement and improving conversion rates through user-generated video content.
Reflecting on the potential impact of Hue’s technology, CEO Janvi Shah concludes: Hue enables brands to bridge the authenticity gap and foster stronger connections with their audiences. ”
