3. Beauty is the fastest-growing segment on Youtube. We show you how to cash in.
Beauty YouTube hit 168 billion views in 2018—nearly double the previous year’s—and investors pumped $303m into beauty tech startups in early 2018. Now, brands are investing in tech that lowers the barrier to online skincare purchases.
We’ve entered an era of “ultra personalization,” where technology can do everything from help you pick your own personal perfume to track when you’ve had too much sun, according to our Toronto-based correspondent, Karoun Chahinian.
The beauty industry, which is dominated by a few large companies, has welcomed a wave of upstarts in recent years. Since 2017, more than 70 beauty tech startups have popped up, netting more than $1.7B in sales.
What’s moving the needle?
Augmented reality and artificial intelligence have changed the game in cosmetic shopping by “decreasing the level of uncertainty or hesitancy women have in buying new products,” Chahinian says.
Among the big changes:
Olay’s Skin Advisor app has helped over 5 million women access a personalized skin-care routine by taking a selfie and filling out a quick survey.
P&G and L’Oréal have created hydration and sunscreen trackers to let you know whether you’ve had enough water or too much sun exposure.
Olay has also launched its Future You simulation, which helps customers see what their skin and face will look like in the future
Where the opportunities are:
Create a platform. There’s no single place that caters to the skincare community. Build a site where power users and influencers share tutorials and regimens, or schedule recurring product orders.
Mine the niches. There are an endless number of niches where you can gain a foothold: from personalized fragrances to custom curl creams to the tech that helps deliver them to consumers.