How #beauty companies should scale generative AI in 2025 to boost marketing and unlock growth. Beauty brands and retailers, such as L'Oréal, SEPHORA, Beiersdorf, Douglas, Coty, E.L.F. BEAUTY, Estée Lauder or Ulta Beauty have all begun testing #genAI to become faster, more responsive, and better equipped to anticipate and deliver what consumers want. According to McKinsey & Company, four #generativeAI use cases are likely to have the greatest impact: 𝟏. 𝐇𝐲𝐩𝐞𝐫𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐢𝐳𝐞𝐝 𝐭𝐚𝐫𝐠𝐞𝐭𝐢𝐧𝐠 AI can analyze large consumer data sets, detect patterns, and create microsegments based on pattern recognition algorithms. From there, a beauty brand can train its gen AI platform to create hyperpersonalized #marketing messages, which could improve conversion rates by up to 40%. 𝟐. 𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐭𝐢𝐚𝐥 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐝𝐢𝐬𝐜𝐨𝐯𝐞𝐫𝐲 Gen-AI-powered #chatbots can help improve the shopping journey and decrease the likelihood of returns. And virtual try-on experiences, will also be enhanced with gen AI. 𝟑. 𝐑𝐚𝐩𝐢𝐝 𝐩𝐚𝐜𝐤𝐚𝐠𝐢𝐧𝐠-𝐜𝐨𝐧𝐜𝐞𝐩𝐭 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 Beauty brands typically spend months developing new branding and packaging concepts—a process that typically requires designers, copy editors, strategists, and packaging experts to iterate on ideas. Gen AI will dramatically accelerate this process. 𝟒. 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐯𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 A gen AI model trained on a beauty product’s bill of materials, raw material usage, process parameters, internal research data,etc —can identify the ingredients that may be best suited for a new product, predict the product’s benefits, and consumer acceptance. To outcompete in digital and #AI, cosmetics companies should 𝙖𝙡𝙞𝙜𝙣 𝙡𝙚𝙖𝙙𝙚𝙧𝙨𝙝𝙞𝙥 𝙤𝙣 𝙩𝙝𝙚 𝙫𝙞𝙨𝙞𝙤𝙣, 𝙫𝙖𝙡𝙪𝙚, 𝙖𝙣𝙙 𝙧𝙤𝙖𝙙 𝙢𝙖𝙥, 𝙨𝙚𝙩 𝙪𝙥 𝙘𝙧𝙤𝙨𝙨-𝙛𝙪𝙣𝙘𝙩𝙞𝙤𝙣𝙖𝙡 𝙩𝙚𝙖𝙢𝙨 𝙩𝙤 𝙙𝙚𝙛𝙞𝙣𝙚 𝙣𝙚𝙬 𝙘𝙖𝙥𝙖𝙗𝙞𝙡𝙞𝙩𝙞𝙚𝙨 and 𝙩𝙚𝙨𝙩 𝙜𝙚𝙣 𝘼𝙄’𝙨 𝙤𝙪𝙩𝙥𝙪𝙩 𝙞𝙣 𝙘𝙤𝙣𝙩𝙧𝙤𝙡𝙡𝙚𝙙 𝙨𝙚𝙩𝙩𝙞𝙣𝙜𝙨 𝙩𝙤 𝙙𝙚𝙩𝙚𝙧𝙢𝙞𝙣𝙚 𝙬𝙝𝙖𝙩’𝙨 𝙬𝙤𝙧𝙠𝙞𝙣𝙜.
Cool read 🙌 is Territory supporting many #retailers with direct marketing services?
Well said Rafael - thx for sharing this post!
HEY Rafael, Thank you so much for sharing these #beauty industry insights
Hyperpersonalized targeting sounds like a great way to connect more meaningfully with consumers
HEY Rafael, Keep up the great work
Thanks for sharing these #AI use-cases Rafael - I appreciate your #marketing best practices and recommendations
Found it interesting, thanks for sharing it.
It will be fascinating to see how quickly brands can innovate in product formulation using #AI insights
More insights how #AI technology is fueling opportunities for customer engagement and business growth in my latest podcast episode https://www.linkedin.com/posts/fmcgguys_will-gen-ai-usher-in-a-new-era-of-marketing-activity-7279081223220596736-X8P0?utm_source=share&utm_medium=member_desktop