BEAUTY CARE

Digital transformation: mastering the challenges of beauty.

Retailers and brands in the beauty and personal care industry are facing two main challenges: providing their customers with a seamless shopping experience by merging the digital and physical retail worlds, and ensuring the integrity of their supply chains.
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A new era for beauty and personal care.

Beauty retail channels such as curbside pickup and virtual stores are growing rapidly. More than ever, consumers expect to buy what they want anytime, anywhere, entirely at their own pace, creating a greater demand for seamless shopping experiences. Beauty companies are feeling pressure to protect their brand value, remain independent of distribution channels, and provide new ways for consumers to interact with their products safely and effectively. Digital support platforms like virtual trials are on the rise, and online shopping for beauty products is rapidly becoming the norm.
 

The new face of the beauty industry: enabling seamless sourcing and supply chain integrity.

The beauty industry is undergoing seismic shifts. From supply chain management to inventory visibility, richer consumer experiences, and more ethical practices – technology is at the heart of this transformation. By adding digital identification to every product, Avery Dennison's digital ID solutions like RFID can help brands maintain relevance while improving their profitability.
 
  • Inventory precision: Only by creating a seamless dialogue between what's in-store, what's in stock, and what's selling online can brands create a better, more seamless shopping experience and fully optimize their inventory.
  • Flexibility: The primary driver of sales in the beauty industry is its diversity, whether in-store or online. Product demand has grown significantly over the years, highlighting the lack of flexibility in brands' supply chains. Customers are becoming distrustful of channels and expect to be able to buy what they want anytime, anywhere. A flexible supply chain allows beauty brands to quickly adapt to new circumstances and appropriately respond to unforeseen changes in product demand. This is crucial for customer satisfaction and directly impacts brand reputation and loyalty.
  • Brand Protection: In 2018, 26% of the 6,000 Health, Safety & Security-related seizures by the U.S. Department of Homeland Security involved counterfeit personal care and beauty products. The gray cosmetics market poses a danger to consumers and a high risk to brand reputation and integrity. With the rise of e-commerce and social media, it has become easier than ever for counterfeiters to get their products into the hands of consumers. Thanks to RFID technology, brands can track and trace each item from the point of production to the point of sale and beyond. This helps limit diversion, reduce profit erosion, and ultimately create a higher level of trust between consumers and brands.
  • Sustainability: Beauty brands often overproduce products to ensure a constant supply. This frequently leads to unwanted excess – as trends change rapidly and not all inventory is sold in time or before its expiration date. The energy and raw material costs of producing, distributing, and often disposing of this excess can be very high, resulting in a significant cost to the planet and to brand assets. Fundamental improvements in inventory management provided by RFID allow brands to optimize their production, ultimately reducing excess and waste, improving both profitability and brand trust.
  • Innovation: Our beauty-ready RFID tags are specifically designed to work on metal and liquid-containing packaging, meaning they can be read in parallel quickly and reliably. Therefore, individual items can be identified not only in the dense trading environment typical of beauty retailers, but also at the carton level, as the product leaves the point of distribution and arrives at the receiving store. Avery Dennison is the first RFID media provider to offer in-metal tags with these capabilities at a price that makes bulk tagging feasible. Our product portfolio offers complete solutions for tagging beauty products, at the factory, distribution center, and in-store.
  • Consumer Engagement: As online beauty sales continue to grow, brands are looking for ways to diversify how they interact with their audience – without the need for ambassadors or intermediaries. With RFID, shoppers can interact with your products in ways that go beyond the point of sale; our Janela™ solution enables brands and retailers to connect and communicate with consumers through their products. By assigning each item a “digital personality,” brands can transform their marketing efforts, increasing customer engagement while gathering real-time data and consumer insights for every product, from production to the end of its lifecycle.

Our products & innovations:

 
In challenging environments for personal care and beauty products, the AD-163u8 coating provides optimal readability. Its slim form factor and rectangular shape further contribute to its versatility in retail-oriented applications to increase inventory accuracy, improve supply chain flexibility, and enhance visibility across all channels.
 
Meanwhile, the AD-456u8 On-Metal tag means it will eventually be possible to add RFID tags to items containing metal and liquids. These metal-based inlays help extend the benefits of RFID to cosmetics, perfumes, and skincare products.
 
For other challenging applications, Midas Flagtag® is designed for item-level tagging on diverse surfaces, especially metallic surfaces such as foil packaging, combined with excellent performance. Midas Flagtag features an innovative small form factor and its antenna utilizes the metallic surface as part of the antenna structure to enhance tag performance.
 
Midas Flagtag is so adaptable that it can be used to tag virtually any item in a retail store, enabling an automated shopping experience with completely contactless checkout – including small personal care and beauty items that are sometimes difficult to tag. This benefits shoppers in terms of time and convenience; and retailers, who can focus staff on more productive tasks, improve inventory management, and reduce shoplifting.
 
To learn more about available products and solutions, you can explore our product finder here. Contact us .

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