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What’s Next: The personalized beauty shopping experience

BY David Salazar

When you think of the “personal touch” in an in-store shopping experience, it may conjure an image of fawning sales ladies anticipating your every desire. Personalized shopping in the technology-driven age means something quite different. Millennials aren’t necessarily looking for an attentive sales person to befriend them and offer suggestions — in fact it’s quite the opposite. A new survey from Mintel indicated that 45% of beauty consumers prefer to search for product information in-store on their mobile device. The same survey said that 39% have used or would try doing research on a store-provided tablet. There’s a clear indication towards technology as a way for consumers to create their own personalized experience.

Kurt Jetta, CEO of TABS Analytics, believed that the beauty channel has the best chance in drug and mass market for enticing millennial buyers. The challenge is that they will have to compete with specialty channels like Sephora and Ulta to do so, and those channels had the highest cosmetics penetration growth in 2015 with 41% for Ulta and 25% for Sephora, but only 11% for Target and 6% for Walgreens, according to research from TABS.

Sephora is way ahead of the game with the rollout of their new initiative — Learn. Inspire. Play. It is a digital concept store that recently launched with a test store in San Francisco. This ambitious project features digital stations for communal tutorials, virtual cosmetic try-ons and a host of other tech-related experiences.

At the end of October 2015, Sephora also launched Sephora FLASH in France in conjunction with Worldline. “Sephora FLASH was developed in order to create a deep link between the digital and physical world,” Julien Decoster, business development manager for Worldline, said. “In a smaller store than the usual one, you will be able to shop the whole catalog of Sephora thanks to digital devices. It’s also a new customer experience since you’re doing an online order in a physical way: You can test the product, you can interact with the seller, you have all the advice that you need, you pay in store, but you don’t have your product immediately. It will be delivered at home, or you can come back the day after to retrieve it.”

“For each market, we know that the challenge of tomorrow is to create a personalized experience, and it’s even more true for cosmetics,” Decoster explained. “Today we have all the technology to know exactly what you’re used to purchasing, what kind of brands you like, what color is the most convenient for you. Brands just need to fill the gap between the digital and physical world, to have the perfect seamless journey. We’re able today to deliver the best of the digital services — all detailed information, an incredible choice (thousands of products), with videos, with high-quality pictures — combined with the best of a physical store —advice from the seller, testing the product, smelling fragrances etc. The main concern will be logistics, and the needed time for delivery.”

Could these types of initiatives translate to a drug or mass market retail environment? Digital kiosks have been attempted at the drug store level before, but they had limited function and were not engaging to consumers. However, in-store digital offerings that are more exploratory could be more appealing. Jetta is all for marketing that is informative and allows consumers to explore new trends, but he is somewhat skeptical of the idea. “They have to be extremely creative in their engagement strategy because of two competing constraints that beauty retailers don’t have to deal with:  1) Low overall traffic per store, [and] 2) Competing objectives from other sectors, primarily consumer health,” Jetta said.

“Beauty really is their opportunity to leverage their massive investments in their loyalty marketing database,” he said.  “Further, they will need to engage primarily in-store not passively (meaning waiting for people to come in), but actively (entice consumers into the store for specific events so that there is some efficiency in their efforts).  Digital can certainly enhance the experience, but it seems that there is still a human element of the engagement that needs to be considered.”

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Novo Nordisk breaks ground on $1.8 billion N.C. production facility

BY David Salazar
CLAYTON, N.C. — Novo Nordisk announced Monday that it had broken ground on its new facility where it will produce diabetes medicine. The $1.8 billion facility’s ground breaking event was attended by the company’s president and CEO Lars Rebien Sørensen, as well as N.C. Gov. Pat McCrory and more than 100 employees, policy makers and community members. 
 
“As the prevalence of diabetes has grown in the U.S., so too has the demand for effective treatments,” Sørensen said. “It gives me great pride to break ground on our new facility site in Clayton where we have an existing, strong organization. This site will play a vital role in enabling us to meet the needs of people living with diabetes in the U.S. for years to come.”
 
The 833,000-sq. ft. facility, which is adjacent to the company’s Clayton facility, will produce active pharmaceutical ingredients for Novo Nordisk’s GLP-1 and insulin medicines, and is expected to be fully operational in 2020. The company expects the facility will create some 700 new jobs once it’s complete. 
 
“Novo Nordisk's billion dollar decision to bring this landmark manufacturing facility to North Carolina underscores its commitment to our state and confidence in our state's talent,” McCrory said.” This expansion of the current site and workforce highlights our ability to be a leader in bio-manufacturing at the global level.”
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Klutz to launch new product line in 2017

BY Gina Acosta

NEW YORK — A leading brand of activity kits for kids is launching a new book and craft line for kids ages 4 and up.

Klutz says it plans to roll out four Klutz Jr. kits beginning in January, with four more planned for fall 2017 and four planned per year thereafter.

"For decades, Klutz has been the authority on creating award-winning and best-selling book and craft kits," says Stacy Lellos, mom of three and General Manager of Klutz. "Klutz Jr. combines that expertise with a line of products that support and empower younger children's natural instincts to create and play while nurturing useful skills."

Unlike Klutz products, which are typically for ages 8 and up, Klutz Jr. is developmentally appropriate for preschool-aged kids, ages 4 and up. Created with a team of early learning educators, safety experts, and kid-testers, each Klutz Jr. kit comes with a handle perfect for little hands to tote, a full color "idea book" for inspiration, and quality content and components to get started right away.

Klutz Jr.'s January launch will include four titles:

  • My Clay Critters ($14.99; Ages 4 and up). Made especially for little hands learning fine motor skills, this book and craft kit is ready for kids to dive right in and make 10 adorable ocean critters. 
  • My Egg Carton Animals ($12.99; Ages 4 and up). Children's imaginations run wild as they transform egg cartons into 6 barnyard animals. 
  • My Twinkly Tiaras ($14.99; Ages 4 and up). This book and craft kit contains 3 sparkling crowns just waiting for a special princess to design them. 
  • My Hand Art ($12.99; Ages 4 and up). This hands-on experience promotes fine motor skills as kids learn to draw 20 hand art designs.

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