Is personalization in luxury cosmetics a challenge for you?

Today, more than 62% of consumers are interested in hyper-personalized beauty products, and 28% of them are ready to spend more to benefit from them.

$74.71 billion is the estimated value of the personalized beauty market in 2028, representing an increase of 14.6%.

In an over-saturated luxury and cosmetics market, the emergence of AI and its many applications makes hyper-personalization an essential strategic lever for differentiation, but its implementation is a significant challenge for brands.

Mastering data management, from acquisition to insightful analytics is paramount for luxury beauty brands seeking to unlock the full potential of personalized customer experiences and products. 

One major common challenge is ineffective customer data utilization and unstructured data bottlenecks. Data warehouses hold potential, but extracting actionable insights feels impossible. 

• Sia can help Data Governance Directors, Marketing and Directors in establishing faster data acquisition and analysis. Our tool, Insights by Sia, allows users to collect a large amount of data worldwide to support and suggest recommendations for impactful decision-making.
• Sia can also support Data monitoring and analysis methodologies. We can help make data more reliable thanks our tool Smart Data Quality.  

Another common challenge for luxury beauty brands is aligning the personalization strategy between different data sources (CRM, Customer Data Report, campaign platforms), with a complex tool integration. This often slow down personalization strategy implementation.  

• Sia can support Data teams in establishing an effective Data Governance and organization for personalization.  

Personalization of luxury cosmetics require more agility and innovation from beauty brands. Traditional logistics models must be adapted quickly and efficiently. 

The main challenges for Operations are difficulty forecasting demand and scaling to meet increasing production and delivery needs for more personalized products.  

• Sia supports Operations teams in Inventory and delivery optimization with our Optiwise tool.

• We also support Operations teams in reducing waste and ensuring traceability with our Waste Tracker tool.

Adapting the sales process, training teams on new consumer expectations and driving satisfaction are key in personalization development. 

Personalization development leads to expanding product ranges and, consequently, more knowledge for sales teams. Luxury beauty brands also struggle to equip teams with the tools and skills to deliver a seamless experience to their clients. Training is often insufficient and not adapted, and sales teams become quickly overwhelmed. 

• Sia supports Retail Education Directors in designing training and knowledge assessment methodologies based on Design thinking expertise 

• We can also support the development of omnichannel proficiency, thanks to specific training strategies. 

At Sia, we support beauty brands in personalization transformation thanks to our catalogue of in-house solutions and the expertise of our consultants.

Let's work together to identify concrete ways of making hyper-personalization a major asset for your company.