How D2C Personal Care Brands Are Personalizing Products to Win Consumers 

The cosmetic industry has all the time promoted a really homogenous concept of magnificence, advertising a typical product to very completely different clients. Most of the manufacturers have been bucketing clients with comparable issues and promoting them a typical product that comes with quite a lot of dangerous chemical substances, preservatives and infrequently did not resolve for his or her completely different issues. 

This has been a giant inspiration for a lot of personalized magnificence manufacturers like Bare Anatomy, SkinCraft, and Vedix to call just a few. These manufacturers are attempting to unravel particular, particular person issues for every buyer primarily based on their distinctive profile. 

“We initiated the brand to break this notion of ‘one size fits all’ and create real, effective solutions to work for our unique customers,” says Vimal Bhola, Co-Founder at Bare Anatomy.

“We have recently the launch of our first-ever campaign – #iammytype, to celebrate uniqueness and debunk stereotypes. We feel that every individual has their own distinct personality, set of religious beliefs, habits, lifestyle, philosophies, political instincts, and professions, why should their skin and hair care be generic and not tailored just for them. With this brand film, we are trying to imbibe the same ideology that just like a woman’s individuality, her skin and hair is also unique; hence requiring a beauty and wellness regime that has been created and curated solely for her,” provides Chaitanya Nallan, Co-founder and CEO, IncNut Digital.

Similarly, Vedix makes use of information of Ayurveda and leverage expertise to know doshas, which by the very advantage of our existence and habits proceed to fall out with one another. 

“Our approach is to understand every individual’s Prakriti, assess their doshas, and design a customized beauty regime for them. We have created ‘Vedix Personalised Questionnaire’ (VPQ), which is a set of detailed question designed by our in-house Ayurveda doctors to understand the concerns and problems of our customers in order to give them a uniquely crafted hair and skincare regimen,” Jatin Gujrati, Business Head, Vedix states.

Technology: A Game Changer

These manufacturers use expertise at numerous ranges. Their software of expertise begins from creating a private questionnaire and these manufacturers constantly refine it to assist their clients share helpful data to allow them to offer them with right evaluation of their pores and skin and hair issues. 

Bare Anatomy is a premium, beauty-tech model and leverages artificial intelligence to think about actual buyer knowledge by way of their hair and pores and skin quiz and construct this data into their formulations – by means of this, they not solely resolve a number of issues for his or her clients but in addition tweak their merchandise to go well with their life-style modifications. 

“Both our skin and hair ranges use algorithm technology to record the customer’s data points and then match those with clean, effective ingredients to work for their unique concerns. Our strong AI technology enables us to personalize product formulations as well as bring constant ingredient innovation to the market, helping us deliver tailor-made experiences to our customers,” explains Bhola.

“We thought it would be ideal to replicate a dermatologist’s way of solving an issue virtually. We are trying to identify how to make the skin healthier, instead of solving just the surface symptoms. SkinKraft relies heavily on the data collected from people, using that to build more sample ‘skin profiles’ for the brand algorithm, which are then matched to appropriate products. The variations in our products can happen at the base level and the activity level. For example, for the same base, we can vary the percentage of ceramide used. This alone gives rise to 150 variations, on top of that, there are variations of fragrance and color,” provides Nallan.

As clients full this primary step of their journey to interact with Vedix, the model makes use of AI and analytics to offer them with real-time evaluation of their doshas which they name ‘Dosha Profile’

“Once a customer signs up with Vedix as a subscription beauty service, we continue to engage with them on a regular basis. The first step is a detailed follow-up after 10 days of receiving the products to understand if they have seen any impact and benefit and if they would like further customization of the products that have been sent. This is followed up with another detailed assessment in 30 days to understand if efficacy is meeting their expectations or if product formulations are required to be changed further. This also helps us to get direct feedback from our customers and further improve our products. Such deeper engagement both from the brand and the customers has resulted in Vedix securing 60 percent plus repeat customer rate which is more than double of the industry standard,” asserts Gujrati.

Role of Data in Personalisation

The knowledge that these manufacturers accumulate from their clients varieties the idea of formulations and the issues they resolve for his or her clients. 

“The customization journey begins with a quick yet detailed skin quiz on our website. Here, we factor in 20+ different data points like your unique skin type, skin goals, lifestyle factors such as diet, stress, etc. This data then goes through our proprietary algorithm which matches it with clean beauty ingredients/ combinations to solve their specific concerns. All our products are freshly formulated in our state-of-the-art R&D lab once customers place their orders. Our product formulations follow stringent quality norms and are backed by a strong in-house R&D team of experienced scientists. A user can always modify his preferences as his lifestyle conditions or hair/ scalp profile evolve and the product formula evolves with that,” shares Bhola.

“Armed with the information that has been scooped out through artificial intelligence, machine learning along with data, algorithms, and programs, the user is classified into one of 72 broad profiles, generating an individualized recommendation, also known as, a hyper-personal beauty regime. Post this, the team moves on to follow-up with the customers to understand their progress and rejig recommendations and product concoctions accordingly. Backed by the extraordinary SkinID profiling system and dermatologically validated ingredients, the company strives to provide the best care for all skin types,” says Nallan resonating the identical ideas.

“Our customers’ feedback drives our product range at a macro level,” provides Gujrati.

Why Betting Big on D2C Strategy?

Opting for a D2C technique within the context of a rising digital financial system is a good way to seize an internet-driven viewers and has allowed these manufacturers to construct direct shopper relationships. A powerful digital presence is important to construct a high-quality personalization expertise for the consumer – from taking the quiz to product formulation to accumulating suggestions and addressing buyer queries.

“It has helped us build an authentic value proposition, identify customer pain points and deliver value-adding touches quickly. It has also been easy to resonate with emerging consumer trends such as toxin-free, organic, sustainable products, which is something traditional brands would find difficult. This in turn has helped us gain early traction and credibility with lakhs of users. A D2C model also allows us to leverage our in-house R&D capability for faster product innovation to launch products (speed to market) and collect customer feedback which further helps in fine-tuning the product formulations. Coupled with the rise of marketplaces like Amazon, Nykaa, and the audience shift from offline to online with the Covid scenario, a robust digital-first strategy has helped us scale faster,” says Bhola.

“D2C enables us to reach a large segment of our addressable market and make an impact at scale. Being digital-first has helped us to take our products across the country without investing large capital in setting up stores and operational costs of running offline stores. Secondly, being a customized offering, we are required to maintain multiple SKUs and D2C gives us the benefit to maintain it at a single location making it a more capital efficient business. Being asset light and capital-efficient, Vedix has been able to pass these benefits to its customers by keeping the price point as low as Rs 999 per month,” provides Gujrati.

How Bright is The Future?

The on-line magnificence and private care section have an enormous potential as it’s under-penetrated in India. Globally, the penetration of on-line BPC in international locations like China, the UK, and the US is between 12-18 % versus beneath 2 % in India. We are seeing many manufacturers throughout sectors adopting D2C as their GTM technique as COVID has accelerated the net procuring development.

“Specific to personalization in the beauty category, D2C is the most preferred route as by nature of being customized, the involvement with the customer is quite high to create specific products which are designed on regular and direct feedback from the customers. Personalized beauty products will find it difficult to scale in the offline world while being D2C business growth and scale-up will be at an accelerated pace,” states Gujrati.

“I think personalization represents a huge opportunity in the market right now – given how the Covid scenario has impacted digital consumer behavior. People are more aware and actively gravitating towards custom-made products for their specific needs. It is also a tremendous responsibility – as a brand, we want to make sure that we only offer the best possible quality to our customers and nothing less so R&D becomes a very time consuming and thorough process for us,” provides Bhola.

“I think every one in three women will opt for customized products by 2025 due to the confluence of three significant trends – mass Internet adoption enabling feedback loops and user input, AI-enabled understanding of ingredient effectiveness, and modern manufacturing technologies. I can also predict that in the next five to ten years will be phenomenal for beauty care companies in India,” concludes Nallan. 
 

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