Andrew Videira, senior brand manager, Beiersdorf, was one of the graduates who presented research on Digital Marketing.

The beauty executives enrolled in the Fashion Institute of Technology’s master’s program in Cosmetics and Fragrance Marketing Management (CFMM) presented “Beauty in a Digital World” to over 700 industry members during the class’s graduation event in June 2013. The event was sponsored by Beiersdorf North America.

Joe Rospars, CEO of Blue State Digital and chief digital strategist for President Obama’s campaigns, delivered the keynote speech at the graduation event.

The graduates’ research showed how digital technologies are changing the landscape for every business, especially beauty brands and marketers. There were three key areas featured – Digital Analytics, Digital Marketing, and Digital Commerce.

The takeaway message was the changes that we all might see industry-wide by 2020 – and how beauty brands should prepare for the ‘digital’ future.

Alexandra Hardyment, assistant global marketing manager, Aerin/Estee Lauder, is a graduate who was on the team that presented research on Digital Commerce.

Big Changes Ahead

The presentation began with an old familiar sound effect blaring through the auditorium – a dial-up connection accessing the internet. Presenters reminded the audience of how it wasn’t that long ago when you couldn’t get a phone call if you were checking email – and then shared overwhelming statistics that illustrated how experienced we’ve all become with digital technologies in such a short time.

One surprising stat – by 2020, there will be 31 billion devices used by the 4 billion people connected to the Internet.

The Packaging of the Future?

As part of the research on Digital Analytics, the presenters predicted that by 2020, packaging may play a critical role in helping beauty brands to collect information.

It was also stated that “focus groups are outdated.” The graduates’ research showed that although a consumer may say in a focus group that they typically apply 5 strokes of mascara – they really use 50.

A better way to collect information about how a product is used would be to mold sensors into a package – and we will see beauty companies doing this by 2020, the presenters stated. “A built-in sensor can show marketers when and where a product is being used, how much of it, and how often, and with accuracy,” one presenter explained.

For skincare, it was predicted that by 2020 we will understand biological data about consumers, to identify groups with specific needs.

Perhaps sensors will even be embedded into your cheek?
Sensors would be able to capture information about skin health, environmental pollutants, stress level, water intake – and export these measurements to calculate the anti-aging index of your skin.

Marketers and product developers will be able to create targeted solutions, to meet the needs of a specific group of consumers – resulting in more effective products.

The Future of Marketing and Commerce

During the parts of the presentation titled Digital Marketing and Digital Commerce, more changes were predicted. “The way we gather data and consumer insights will be revolutionized,” a presenter stated. Technologies such as facial recognition and predictive analytics will all be used to completely personalize the in-store experience.

Graduate Allison Robl of L’Oreal, presenting the research about Digital Commerce.

The presenters also firmly proclaimed that there will be a paradigm shift by 2020 – as human-centric marketing, and micro-marketing, becomes the norm. “All brands need to build interactivity into their communication plans,” stated one presenter.

Micro-targeting, enabled by data and technology, will allow brands to create highly personalized communications. The result, micro-engagement, will increase individual consumer lifetime value for brands.

When the future of shopping for beauty products was discussed during the last part of the presentation, Digital Commerce, it began to feel like we would all be shopping like Judy Jetson.
Giant images of store aisles were projected onto a big screen on the stage. The audience was asked to imagine a beauty store in your house – at the touch of a button.

Will motion-activated technology allow consumers to virtually browse aisles of products – located anywhere in the world – and make purchases directly from an interactive screen?

The presenters also suggested that consumers should be able to capture an image on a cell phone, locate the item, and buy it – with 1 click. They called this “Beauty on Demand” and predicted that the first beauty retailer to take existing technologies to this level will have an amazing advantage over competitors.

“Every medium could be a retailer…,” one presenter stated, also noting that Amazon and eBay have already “cracked the code,” so it would be a smart move for a beauty brand to partner with one of these leading ecommerce experts.

Last, but not least – what’s the new ROI? ROL – Return on Learnings, which will be the new real-time metric used to track and drive brand value.