Mirror, mirror on the wall, who’s the richest of them all? How can the beauty industry make money on blockchain technology? It’s hard to imagine things that are more incompatible with each other. They are like rainy London and sunscreen – don’t really match. Although the year 2023 claims the opposite. Turned out that blockchain and cosmetic corporations can build a bright future together!
Men are from Binance, women are from Dior
Analysts have found out that in the crypto industry, the percentage of men among entrepreneurs significantly exceeds the percentage of the female audience. According to the brokerage study, only 15% of women are Bitcoin traders. In the beauty industry, on the contrary: there are many times more women among clients. So how did these two sectors connect, if they attract different audiences? Looks like new technologies are interesting for everyone, regardless of gender.
Why does blockchain need the beauty industry?
The beauty industry is, first of all, a big business with rich investors. And where have all the views of investors been directed in the past few years? That's right, towards blockchain technologies and the Web3 space. Therefore, the penetration of one into the other was only a matter of time.
According to Precedence Research, the global cosmetics market was surpassed at $375.30 billion in 2022 and is anticipated to reach $560.50 billion by 2030. Not a bad prospect for profit, right?
Beauty technologies
Do not underestimate the capabilities of lipsticks, perfumes and highlighters manufacturers – they are not as simple as they might seem from the first glance.
The beauty industry always works hard on using different modern innovations in order to satisfy customers' needs. Online selection of cosmetics using 3D modeling, color correction, analysis of skin parameters and other similar technologies have infiltrated the sector. Just take for example the Sephora Virtual Artist – it is an augmented reality app that helps to try makeup on. The launch of such a service increased brand awareness by attracting the attention of bloggers.
How Cosmetic Brands Can Use Blockchain
The new era is starting to develop on the blockchain – the era of beauty! How does this partnership work and how blockchain technologies can help beauty corporations? Let’s see below.
- Blockchain will provide additional transparency
In the beauty industry, transparent relationships between suppliers and their consumers are valued more than anywhere else. Modern eco-trends only stir up the interest of the public in natural organic compounds. The environmentally friendly production is now a trend and there are many “green” projects in crypto space. Blockchain technologies help to monitor the integrity of manufacturers. The main advantage of the blockchain is that it stores all the data and it cannot be faked. The product supply chain becomes transparent.
The British online cosmetics hypermarket Cult Beauty was the first to use this technology. Company entered into partnership with Provenance, a firm that actively uses blockchain. Thanks to this collaboration, it is possible to check all supplier information at any time.
- Blockchain protects the authenticity of products
Fake products in the cosmetic world are a frequent phenomenon. Blockchain is helping to fight fraud in the beauty sector. It plays an important role in verifying the authenticity of not only supplies, but also the products themselves. Consumers can go to a specialized website and, with the help of new technologies, track all the production by batch number.
For instance, Purearth, a skincare brand, helps customers to discover the origins of its product based on blockchain. Customers can see the whole product journey from the very beginning through the QR codes printed on products.
- Brand promotion through NFTs
Non-fungible tokens help brands communicate with their customers in new ways. Berlin-based design studio Look Labs became the first to break into the Web3 space. In 2020, the company released the Cyber eau de parfum and tied 10 unique NFTs to it. Each token was designed by Canadian artist Sean Caruso. Perfume Cyber became the world's first digital fragrance.
The future of blockchain in the beauty world
The main policy of cosmetic brands is to promote their product on the market. For this purpose, various means and technological innovations are used. Blockchain can hardly be called a mass product, but it is “on trend” in 2023. For the beauty industry, the introduction of blockchain brings the following benefits:
- expanding the audience of customers;
- promoting smart consumption – buyers can be more selective in choosing products and purchase specific items online without fear of making the wrong choice;
- creation of a transparent system of supplies and production of beauty products;
- creating conditions that are comfortable for the client by developing new loyalty programs and crypto rewards.
In general, the cooperation of the beauty industry with the blockchain has a positive effect for everyone. With the development of new digital technologies, it will become much easier for people to enjoy the benefits of the world of beauty.
What do you think about using blockchain in the beauty sphere? Share your thoughts in the comments below! If you want to learn more interesting facts about crypto, then check out our blog! You might like our articles “Lacoste Web3 Portal: A New Era of Fashion and Fun” and “Gucci Got Inspired by the Metaverse”.
