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beauty project

Beauty during the pandemic – DIY beauty e-commerce app

A major Italian cosmetics brand. Eco-friendly raw materials from leading Italian manufacturers are used to create cosmetics. The products are manufactured by using modern technologies.
  • 27 years on the market
  • 600 items of goods
  • 2 branded stores

Since the beginning of the pandemic, the number of sales has decreased.

Management is looking for narrower and potentially new segments to increase sales. The global goal is to maintain a strong position in the market after the end of self-isolation.

diagnostics

The methodology of design thinking was used to work on the project. Conducted in-depth research and identified new segments. Here are some of them:

  • 1
    Fitness and beauty segment
    In conditions of isolation, women spend most of their time at home, so they prefer skincare cosmetics and conscious consumption.

    The survey showed that most of the regular customers buy makeup of the brand but do not know about the existence of skincare cosmetics. The company's advertising is mainly aimed at makeup.

    Makeup is also presented in most areas in the shop, so customers turned to stores of other brands to buy skincare products.

    For 54% of respondents, buying cosmetics is an opportunity to try new products and spend time with themselves.
    We have established that there is no brand in the country that works with fitness and beauty segments in the budget price category.
  • 2
    Makeup artists
    The makeup artists noted that they know the brand, love the variety of products and appreciate its quality. But only 2 out of 10 makeup artists use the brand's products when working with clients since cracks appear on the packaging after the first use and it quickly loses its presentable appearance.
  • 3
    Random buyers
    58% of respondents said that they do not use this brand, but at the same time, they found brand cosmetics in their cosmetics bag. The fact is that the appearance of the products does not stand out among the numerous no-name cosmetics. The brand's products do not have a recognizable appearance.

    The researchers also identified inefficiencies in business processes.
    All buyers note that they refused online purchases of brand products because of the long delivery and inconvenient method of receipt – only at the state post office, where there are long queues.
Sofya, 19 years
regular customer
"For me, makeup is generally irrelevant now, there is no need to go to the office, all events and trips have disappeared from life. Just the house. I go for a walk or run nearby the house. By the way, I started to use creams, serums and masks more often"
Sofya, 19 years
regular customer
"For me, makeup is generally irrelevant now, there is no need to go to the office, all events and trips have disappeared from life. Just the house. I go for a walk or run nearby the house. By the way, I started to use creams, serums and masks more often"

decision

  • Formed new customer segments
    To improve the basic level of service, we have formed a portfolio of initiatives for each segment – a total of 160 initiatives. We have prepared a project for implementation – a roadmap with a description of activities and recommendations.
  • Implementation of a personalised service
    Since the beginning of the pandemic, the habits of buyers have changed, so we have formed a new strategic product – a DIY subscription service with a daily beauty routine and a personal AI consultant for daily care and makeup.

    The next stage is testing hypotheses on the functionality of the application: subscription service, face scanning for analysis and suitable tips on skincare and makeup, virtual fitting of decorative cosmetics, ML for daily beauty routine, creating custom beauty boxes, sale of products in a live e-commerce format.

results

+ 6 new segments and +180% of sales from new segments

  • Increased sales from new segments
    Sales in new segments increased by 14-32%. Having identified the needs of new segments, we have defined a personalized customer approach to each group of customers and formed product lines that meet their goals and needs.
  • Increasing the number of new customers
    An increase in the number of new customers due to changes in advertising companies, product lines, and loyalty programs.
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