JOANNA STEPHENSON
Cornelius Group, Bishops Stortford, United Kingdom

Abstract

The article discusses the growing role of personalisation in the beauty industry, including the product and packaging. It outlines the fundamental changes in retail and consumer behaviour that have changed the power dynamic in retailing, including a need to forge new connections with shoppers. Personalisation is a format of experiential marketing – a growing phenomenon that has already caused waves in the cosmetics retail space, and will continue to do to as the industry continues to embrace digitalisation. The article considers the circular ecosystem of marketing, data and technology, and how data-driven marketing has tangible implications on purchase decisions, which makes personalisation a key advantage for brands. After outlining the factors at play including psychological influences on purchase behaviour, the article focuses on the cosmetics industry with examples of personalisation being leveraged for brand loyalty. The article takes a balanced view, also alluding to some of the current format limitations. Following this, the article makes a natural progression to the important packaging developments that accompany the growing need for personalisation, before forecasting the future of personalisation in cosmetics.

Iconic American author Maya Angelou once wrote that people will forget what you said, but they’ll never forget how you made them feel. This is the essence of experiential marketing, and it’s big business. The term itself is a relatively new addition to the retail and marketing lexicon, with origins in 1997. At the time, e-commerce was in its infancy, mobile technology was limited, and actionable data-driven marketing was still a pipe dream.

CREATING A CONNECTION

As the global retail environment continues to evolve and technology has advanced apace, experiential marketing has rocketed to the forefront and personalisation is the new standard. Reflecting a change in collective value-led purchasing, consumers today don’t just want throwaway one-off purchases; they want a connection. It taps into that fundamental human need for belonging, to feel part of something and to feel seen. The change has come about over recent years as the retail/buyer power dynamic has shifted. The global retail market is now consumer-led, and shoppers vote with their wallets.

Strip it back to the fundamental components and it’s a simple ...