“Informed Consumers Are More Likely To Stay Loyal”
How has the customer changed over the last few years?
The beauty industry has seen a convergence with wellness and self-care. Consumers today are not just looking for products to enhance their appearance but also for those that contribute to their overall well-being, including products that promote the same. Today, self-care is not a one-size-fits-all approach, but a personalised and holistic one that involves our mind, body and spirit.
Furthermore, the concept of less is more is becoming more prevalent. In this fast-paced world, consumers do not have time, are constantly on the go and looking for simplified solutions including minimal skincare routines that work. At 82°E, we have simplified the consumer’s skincare journey into three steps -- Cleanse, Hydrate and Protect. We have created high-performing products that are clinically and dermatologically tested for efficacy and safety.
How can brands in the beauty business ensure loyalty?
In the beauty business, loyalty is built over time through consistent efforts to meet consumer needs and expectations. Ensuring consumer satisfaction and loyalty is very critical for any brand. Some strategies that we follow are consistently delivering high-performing products which are rigorously sourced, carefully crafted and clinically tested that meet or exceed customer expectations. We believe in being open and transparent about our products, ingredients, and the benefits. Consumers appreciate honesty, and it helps in building long-term relationships. Additionally, providing valuable information through educational content about ingredients, skincare, beauty tips, and product usage is a powerful way to engage and educate your consumers. Informed consumers are more likely to stay loyal.
Lastly, it is essential for the brand to keep the consumer at the centre of everything and listen to them.
How has the brand fared in the last year?
Skincare, as a market segment, is growing at breakneck speed. This spurt can be attributed to numerous factors driving the demand for skincare and beauty products; honesty, authenticity, and simplicity being the key drivers as the consumer is more selective and aware.
Consumers are increasingly choosing to purchase premium products with a higher average sales price in the skincare market. They are seeking better value for money – upgrading their purchases to clean and organic product lines and those with more innovative formulations.
At 82°E, our journey and traction since November 2022 have been phenomenal as our products have been loved by consumers across the globe. Having dropped 12 products, the response that we have received for each of our drops from the community has been overwhelming. Within the first month of launch, we witnessed a remarkable response and have already served consumers in over 36+ countries. In less than a year, we are on track to achieve a 100-crore annual recurring revenue (ARR). We are consistently achieving above-industry-average repeat rates, with an average product rating of over 4.2 out of 5, based on thousands of ratings from our paying consumers.
How has the beauty market leveraged AI in the last few years? According to you, which aspect of this has been the most transformative?
In my view, AI in the beauty world is still at a nascent stage. Having said that, it possesses very high potential especially in the world of colour cosmetics where challenges such as shade matching persist as major issues. AI/ML, augmented reality and virtual reality (AR/VR), are being increasingly leveraged in the skincare industry to enhance consumer experiences, improve product recommendations, and streamline operations. For instance, AI-powered virtual try-on tools and algorithms have become increasingly popular. Not only do these tools allow consumers to try on makeup, hair colors, and skincare products virtually but also allow brands to suggest products tailored to each consumer's specific needs and preferences, thereby improving the overall shopping experience.
We employ AI to conduct comprehensive market research, employing data-driven decision-making through A/B testing and user behaviour analysis. By consistently enhancing user experiences with user-friendly navigation, we strive to make online shopping simple and smooth. Furthermore, we're actively exploring AI's potential to further our goals, encompassing smarter algorithms, chatbots for improved customer support, and predictive analytics. These initiatives are all geared toward exceeding customer expectations and solidifying our brand's position in the industry by delivering a highly personalised and enhanced shopping experience.
