Recently, experiential e-commerce platform Obsess partnered with market research firm Coresight Research to invest in immersive experiences for U.S. brands in fashion, home, CPG/FMCG, and beauty, as well as more than half of U.S. brands. We conducted an online survey on priorities. Brands and retailers surveyed said they would “definitely” increase their investment in immersive experiences over the next three years.
Immersive experiences such as virtual stores, live streaming, data- or AI-enabled content for personalization, and virtual reality (VR) or augmented reality (AR)-enabled virtual try-on options have become increasingly popular and particularly successful in recent years. It contains. Beauty brands recognized for their ability to better showcase finished products and connect consumers with product options that best suit their needs.
Learn more about this research and its potential impact on cosmetics and personal care product brands and how manufacturers and suppliers in these industries are applying immersive experiences to build better relationships with beauty brands. To find out more, CosmeticsDesign spoke to Neha Singh, founder and CEO of Obsess for. her insight.
About the survey
To conduct the study, Obsess and Coresight Research contacted 150 decision makers at U.S.-based brands and retailers. ”$100 million or more in annual revenue (including $10 million or more in online revenue) in fashion (61 respondents), home (41 respondents), household goods/FMCG (41 respondents), or beauty (7 respondents) Sectors investing in immersive experiences operating in the field of” said Singh. Additionally, to be considered for investigation, the decision maker must “Senior Manager or above who is familiar with your company’s immersive experience performance metrics” she added.
Respondents were then asked about potential investments in immersive experiences and ranked their priorities for that investment among other types of marketing investments, virtual stores, data/AI-enabled content. We were asked about the types of investments being made in various immersive experiences, such as: Personalization, gaming experiences, and social shopping.
Investigation result
Result of investigation,”55% of U.S. brands and retailers across fashion, beauty, CPG/FMCG, and home goods categories say they will “definitely” increase their investment in immersive experiences over the next three years.” said Singh. moreover,”On average, immersive experiences rank as the third-highest overall investment priority for these brands and retailers over the next 12 months.” she shared behind e-commerce and influencer marketing.
Further results are:Increased sales from investing in virtual stores is spreading across the fashion, beauty, home, household goods, and FMCG sectors.with “”At least 97% of respondents in each category reported an increase in overall and online sales” she said, adding:Most of these showed moderate or large increases”
Singh further explained that the result was data showing the superiority of immersive experience technology.Impacting their physical business, 88% of brands and retailers who have invested in virtual stores experience a significant or moderate increase in total sales as a result.“Additionally, she shared:77% of businesses that have invested in data/AI-enabled content for gamified shopping experiences and personalization report strong or moderate increases in online sales,”moreover,”78% of brands and retailers that have invested in social shopping see a significant or moderate increase in online sales as a result.”
Impact analysis
The results of the survey data are:Cosmetics and personal care product brands will become more powerful in the coming years by prioritizing immersive experiences such as virtual stores, data/AI-enabled content for personalization, social shopping, and gamified shopping experiences. We are poised to deliver meaningful, engaging and personalized shopping journeys.” said Singh.
The big positive outcome for investing in immersive experiences is that “It serves as your brand’s roadmap for what and how to invest in the types of experiences that ultimately lead to customer acquisition, customer loyalty, conversions, and business growth.” she added.
For example, she explained:Manufacturers and suppliers can create virtual showrooms to educate buyers about their products, their ingredients, and packaging.” As previously reported, global chemical manufacturer BASF has already embraced the idea. cosmetics design. ”Just like a virtual store” said Singh.These manufacturers and suppliers can integrate 3D products and interactive content within immersive experiences, giving shoppers new ways to learn about products and make purchasing decisions for next season.”
For beauty brandsImmersive commerce solutions are increasing across metrics across the board, further proving that they are true full-funnel solutions from acquisition to engagement to purchase.” she added. For example, as previously reported by CosmeticsDesign, Maybelline recently partnered with FFFACE.ME to launch the world’s largest AR mirror in Ukraine, allowing users to try out the brand’s latest mascara products and sparking interest. Increasing engagement with your target audience.
After 2024
Going forward, we can expect to see such immersive experiences implemented on a broader scale in the beauty industry, Singh concluded.Data/AI-enabled content for personalization and virtual stores,”which one”Both have shown promising results in improving metrics such as new customer acquisition, product click-through rates, time spent in store visits, and conversion rates.,”underscore”The potential for businesses to invest in personalization to drive conversion and reach” she said.
As cosmetics and personal care manufacturers, suppliers, and beauty brands evaluate their marketing strategies for the year ahead, they will use the results of their survey data to inform their decision-making process regarding more effective marketing techniques and systems. It is essential to consider. By leveraging complex data, beauty companies can spend their marketing budgets more efficiently and potentially increase year-over-year sales through more conservative investment opportunities.
