February 7, 2023

Beauty has proven to be a resilient industry over the past year, holding up amid a challenging cost-of-living crisis that has hit other industries hard. Next year, beauty looks stronger than ever as rapid digitization and loyal consumers support the 4.64 percent annual growth rate predicted by Statista, with the market already reaching $528.6 billion by 2022.

FashionUnited has sifted through multiple reports to uncover the industry’s most definitive trends, each of which aims to drive consumer engagement, build trust and complete satisfying transactions.


Personalization has become a very important factor in beauty as more and more consumers expect personalized interactions from related businesses. According to a survey by McKinsey & Company, 71 percent of consumers expect such a service, while 75 percent are more likely to make a purchase if they receive personalized recommendations.

As part of its own report, Shopify highlighted several methods that have proven effective in personalization, including Sephora’s app, which allows shoppers to submit options such as hair and skin type and participate in quizzes to define recommendations.

However, according to Revieve, a digital-first solutions provider, this trend will be driven by the use of selfies, which, when optimized, can provide shoppers with personalized product recommendations prior to a purchase. In its report, the company said it found evidence that users who engaged in the self-analysis took 53 percent more purchase-related actions than those who didn’t, resulting in a completion rate that was 60 percent higher than other customers.

Brand loyalty

Loyalty programs and initiatives represent a huge opportunity for beauty brands, Shopify noted, allowing them to personalize their offerings and retain more long-term customers. In the coming year, the company added that consumers will continue to look for products from brands that offer rewards, as it found that 56 percent of consumers said they were more likely to buy from a brand with such a program. Many further mentioned that automatically applied rewards and personalized rewards were the main reason for using them.

Revieve also confirmed that building relationships with customers was one of the most important factors, despite the fact that the industry often leans towards facilitating transactions. In its own report, the company said building loyalty will be “key to the future success” of the industry, highlighting its own efforts of goal-setting initiatives and routine recommendations.

AI, AR and VR

Almost every industry has faced the need to digitize rapidly this year, a trend that will no doubt only intensify in 2023. More beauty brands will continue their efforts in artificial intelligence (AI), augmented reality (AR), and especially virtual reality (VR), with each offering a number of benefits to those who optimize them. AI is useful for helping online shoppers identify the right products for them, and can be used as a way to create consumer-specific formulas and drive individualization. Shopify highlighted Proven’s AI technology, which allows users to receive matching products for their own skin type and lifestyle on a seasonal basis.

In addition, a large number of shoppers have already encountered AR or VR features while shopping, as a greater number of social media platforms begin to implement such elements in their offerings. Beauty stores can use these features to showcase their products, allow customers to try on items virtually, and connect with audiences in their own homes. According to Shopify’s research, products with 3D/AR content had a 94 percent higher conversion rate than products without.

It’s these features that Revieve helps brands build on, as the company has already launched an AI Skincare Advisor and other AR-powered solutions that help brands build a loyal customer base. The company found that users are, on average, two to three times more likely to become repeat customers when they encounter such programs.

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