21 Oct CONNECTED BEAUTY: Why cosmetic brands will adopt smart packaging?
“Smart packaging is a conversation between people, brands, and objects and that smart packaging enhances consumers’ experience with products” Moor Insights & Strategy
When you’re in a store and you pick up a product, the first thing you see and touch is the packaging. Since the beginning, the cosmetic and personal care industry have been using the packaging as a “marketing channel” to attract and educate the consumer. The ability to deploy positive information to consumer and the aesthetic design of the packaging is one way to add value to your product. However, today, in the new age of the Internet of Things, traditional marketing is not enough. Products are evolving. Through their packaging, they’re becoming interactive, aware and intelligent to enhance consumer experience.
The Internet of Things is growing. By 2020, more than 50 billion objects will be connected to the internet according to cisco. With this era, different technological innovations are emerging allowing brands to communicate with their consumers, to personalize their communication instantly, and to respond better to their consumers needs.
Following this trend, L’Oréal launched the Connected Beauty Incubator (CBI), an incubator based in Silicon Valley which is a lab focused on creating among other forward-thinking connected beauty products that disrupt the cosmetics industry.
Other sectors such as the spirit industry have also understood the importance of evolving their products in this new era of IOT. Recently, Rémy Martin launched the first 100% secure connected bottle with a unique opening detection technology and creating consumer engagement. In turn, Johnnie Walker developed a prototype of an NFC smart bottle last march.
Cosmetics are products that we use on an everyday basis, for every occasion. L’Oréal’s head of digital and media for Australia and New Zealand, Christophe Emery said: “There is a lot of development happening internally. There is definitely a big focus. These products, for most consumers, are in their bags every day and are almost as personal as their mobile device. You can imagine there’s a great opportunity to have make-up as connected devices as well, creating a territory for ongoing customer engagement.” When using a product, a consumer is no longer wanting to tell you what he needs, he expects you to know it. What if your product could become an anytime/anywhere innovative digital communication channel with your consumers? Is it a sector worth exploring?
Yes, it is. It’s called “Intelligent Internet of Things”. Intelligent packaging is a way of establishing a dynamic interaction with sensors on packaging such as NFC (Near Field Technology) tags.
Brands have understood the importance of anticipating their consumers needs and to step up a product and packaging digitalisation. With new platforms like Selinko, specialized in smart product solutions, brands can now:
- Prevent their products from being tampered by AUTHENTICATING them;
Do you ever second guess your lipstick? Or your moisturizing cream? Counterfeiting stays one of the main concerns in the cosmetic industry as it is the second largest sector impacted by fake goods. Being a frequent target, it represents 10% of the total counterfeit products. And it leads to important loss in profits. France losses up to $8.5 Billion a year to counterfeit goods. In the UK alone, it is estimated that consumers spend at least £90 million a year on fake goods. Fake products can not only damage your brand image, it can also harm consumers’ health.
By connecting cosmetics & personal care products and giving them a unique digital identity, brands will be able to guarantee a 100% authentic product purchase to their consumers. Indeed, the Selinko solution allows them to check product authenticity and detect opening by scanning their product with their NFC smartphone.
- Track their products from production to consumer, limiting the risk of gray markets and creating a trustworthy relationship;
- Create an ongoing long term and loyal relationship with their consumers;
By connecting your product with the Selinko solution, you will generate accurate data that can be directly linked to your CRM to improve your consumer intelligence. You will also maintain an instant and constant contact throughout the whole relationship. Instantly, you create trust, you engage with your consumers, you educate and most importantly, you develop loyalty.
- Secure their online sales;
Counterfeit cosmetics have been offered online since virtually the beginning of ecommerce. With the popularity of the internet and online shopping, the production and sale of fake goods on the web is only expected to increase. Certifying online sales is key to create trust between you and your consumer by allowing him to check authenticity at purchase and at delivery through a unique patented process.
So, what are the benefits of the the cosmetic and personal care industry to enter this new era of IOT and make their product/packaging SMART?
- prevent their brand from counterfeiting & gray markets;
- protect their costumers by allowing them to authenticate instantly their product and make sure it has never been opened;
- build customer confidence during the purchasing process in store and online;
- build brand loyalty by offering innovative customer experience;
- access real-time analytics and develop customer intelligence;
If you want to know more about Intelligent Packaging and how your brand can adapt the Solution, Selinko is participating at LUXEPACK Monaco and is revealing its solution to the cosmetic industry. Patrick Eischen, Selinko’s CEO will be participating, along with other industry experts, in a roundtable on Thursday the 22nd of October 2015 at 14h00. They’ll be discussing and debating the new trends and innovations in smart packaging,