The New Beauty Era

The beauty industry is estimated to be about$49 Billion as of 2022. Part of its explosive growth in the past decade is largely thanks to digital innovation and the rise of social media. Viral products are now quick to sell out, and beauty brands have more extensive reach than ever through platforms like Instagram and TikTok. However, a new era of growth is on the horizon, driven by Web3 technology and the potential of immersive virtual experiences to transform the way we shop, interact, and engage with brands.

What is an Immersive Virtual Experience?

Immersive virtual experiences, part of the evolving Immersive Web, bring together people, places, and activities from around the world through interactive and deeply engaging platforms. Although still in a relatively early stage of development, immersive experiences carry tremendous potential to transform how we communicate, shop, and experience daily life.

Imagine immersive worlds where users can explore, shop, play games, and communicate, but with the added dimension of augmented reality (AR) and rich digital experiences. For the beauty industry, these experiences are set to radically change the way consumers interact with brands through virtual try-ons and digital beauty consultations. Major brands like Clinique, YSL, and L’Oreal are already leveraging AR and immersive technologies to enhance customer experiences and provide new ways for users to engage with their products. View case studies

How the Beauty World Can Leverage Immersive Technology Across the Value Chain

One clear area where immersive virtual experiences are already making an impact is in virtual try-ons, allowing consumers to test makeup or skincare products from the comfort of their homes. While this is currently at the forefront of well-known brands like Clinique, YSL, and L’Oreal, the scope of virtual experiences spans the entire value chain of the beauty industry, from R&D to marketing and customer service.

Beauty brands can use immersive technology to not only reach new markets and inspire brand loyalty, but also to become more sustainable and efficient. For example, brands can conduct virtual simulations to test product formulations and packaging, reducing waste and energy use. This focus on sustainability is becoming a critical factor for beauty brands aiming to reduce their environmental impact.

In marketing, immersive platforms provide innovative ways for beauty brands to engage with customers. Virtual storefronts offer an immersive shopping experience, allowing users to explore products as they would in a physical store. At the same time, brands can leverage virtual influencers to reach wider audiences and create gamified interactions, adding new dimensions to customer engagement. This leads to entirely new revenue streams and marketing opportunities for beauty companies.

With immersive experiences, brands can also improve operational efficiency by using virtual environments to manage inventory, streamline production, and address Next-Gen CRM needs. Virtual platforms enable beauty brands to gather data on customer behavior while adhering to privacy regulations, helping brands better understand their customers.

Limitless Opportunities for Beauty Brands to Flourish in the Virtual World

Immersive virtual experiences are no longer an offshoot of a brand’s strategy—they represent the future of the beauty industry. With the potential to reshape business models, beauty brands can tap into omnichannel engagement strategies to provide customers with seamless, immersive experiences across platforms.

Key opportunities include:

• Sustainability: Digital products and virtual value chains reduce energy consumption and improve CO2 footprints.

• Next-Gen CRM: Immersive experiences allow brands to gather more customer insights than traditional websites.

• Innovation through Co-Creation: Brands can connect with customers by co-creating products through virtual collaborations.

• Hyper Engagement: Immersive technology allows for direct interaction and gamified brand activations.

How Are Beauty Brands Currently Leveraging Immersive Virtual Experiences?

Luxury and professional beauty brands alike have already made successful entrances into the virtual world. Notably, in the second half of 2022, Estée Lauder participated in Metaverse Art Week, hosted by Decentraland. At the event, the beauty brand provided visitors with POAP (Proof of Attendance Protocol), a type of NFT that grants access to upcoming Web3 virtual experiences. This campaign was a strategic soft launch into the virtual e-commerce space, building buzz for future Web3 initiatives.

At Journee, we’ve helped brands create meaningful immersive virtual experiences beyond traditional transactions by addressing the human need to explore, interact, and be surprised. For example, we collaborated with Clinique to launch the Clinique Lab, an immersive online store that offers a multi-sensory, gamified experience. The Clinique Lab combines education and entertainment, providing customers with a fun and interactive way to engage with the brand in a virtual setting.

Similarly, NARS Cosmetics recently launched an immersive experience where customers can explore interactive virtual spaces that reflect the brand’s iconic color palette and design ethos. This project showcases how beauty brands can use immersive technology to create sensory-driven, personalized experiences that go beyond traditional online shopping, offering customers an engaging and immersive journey.

In addition to customer-facing experiences, beauty brands are also using immersive technology internally. For example, Shiseido introduced its Intraverse Skytopia, a virtual platform for global employee training. This immersive environment allows the brand to train employees worldwide, ensuring consistency in engagement and learning while leveraging the power of immersive technology to educate teams in a dynamic and connected way.

The possibilities for beauty brands in the immersive virtual world are nearly limitless. With the ability to transform brand experiences, tap into new markets, and streamline internal processes, brands are poised to unlock new revenue streams and future-proof their operations through immersive technology.

How to Begin

Beauty brands have a world of opportunities when it comes to creating new and meaningful brand experiences and omnichannel engagement through Web3 technology and immersive virtual experiences. To properly integrate this exciting technology into your current business model, we first recommend creating a Web3 strategy.

This strategy should be comprehensive and include objectives, KPIs, and where along the value chain you will implement the technology. For example, is your goal to create a virtual showroom? Do you want to implement the ability for customers to design made-to-order pieces in an interactive, virtual store?

Once the strategy has been established, consider how you will execute it. For example, JourneeX offers brands the ability to create branded, interactive experiences and build premium virtual worlds while unifying developer and management workflows.

Finally, consider working with an expert team or platform that can support you through the process. At Journee, we’ve worked with internationally known brands to create their own unique immersive virtual experiences. Discover our enterprise services

Summary

Immersive technology and virtual experiences are positioned to transform the beauty industry and how customers interact with brands. This potential extends far beyond novel and educational experiences. Brands can leverage this technology to create more efficient, sustainable, and collaborative systems throughout their entire value chain. Plus, beauty brands can reach customers in new and meaningful ways, helping them expand their business and future-proof their operations.

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