Beauty & The Tech: Technology Trends Transforming the Industry

With the ever-evolving technology landscape, the trends reshaping the beauty industry today can’t be overlooked. From personalisation to embracing new products and everything in between, Australia's intersection of technology and beauty has helped transform and elevate the AUD $5 billion beauty industry.

It continues to evolve with even more innovative products and services that cater to its consumers' changing needs, diversity and inclusion, and overall preferences. With a yearly 4.4% growth in the Australian market, businesses applying cutting-edge advancements and embracing technology trends offer owners opportunities to grow and capture new audiences. In this article, we look at five ways technology is transforming the beauty industry and opportunities to consider when it comes to tech advancements for your business.

Technology & the Rise of AI

AI, AR, VR—these are buzzwords that have been making the rounds lately across all industries. But can they assist your business in its day-to-day operations? The answer is yes, but they should be utilised in the right ways to enhance your business functions.

Artificial Intelligence (AI) has become a fundamental part of the beauty industry, enabling brands to improve operations and customer experience. By analysing beauty data such as skin types, hair trends, and other customer preferences, AI is assisting business owners in providing personalised product or service recommendations. It can also help with appointment scheduling and inventory management, increasing efficiency, customer retention, and increased salon profitability.

Augmented reality (AR) and Virtual Reality (VR) are also at the forefront when it comes to things like ‘virtual try-on tools’ for makeup or certain beauty products. These allow your customers to try makeup virtually, reducing the risk of buying the wrong colour or product. In a time-poor world and with the shift to e-commerce, customers will have the quality and confidence to make in-store purchases with online convenience.

The Digital Age of Beauty

On the topic of e-commerce, another stream of digital transformation in the beauty industry is focused on e-commerce and social media, which, for small businesses, is no longer considered a nice to have but instead, a necessity. A recent report by Shopify said that “online shopping will be the number-one way people shop for beauty products,” meaning the development of new marketing strategies is required to keep up with the competitive brand presence within the beauty industry. Influencer marketing is a popular way for beauty businesses to win customers. It is designed to build trust between a brand and consumer and capture audiences’ attention quickly by ‘stopping the scroll.’

With websites, apps, and various social media platforms being the primary tools for customer interaction, your beauty business needs to build a strong online presence. Various digital tools in the market are designed to capture customer data and feedback, which can also enhance your customer experience model.

Streamlining Business Operations

One way to streamline business operations is to review the tech currently implemented in your business. What is or isn’t working? Do you need to invest in different machinery to offer clients a better customer experience? What about your day-to-day business tech, like POS and EFTPOS? Does your provider need a switch up to help your business save on pesky fees?

There are a range of payment providers in the market; however, you need a best-in-class payment partner who understands you like a good skin care regime. Enter Smartpay. Their Zero Cost™ EFTPOS product is built for beauty businesses like yours, so you can spend more time with your clients and less time worrying about payments.

It’s simple: Add a small surcharge to the payment, and you’ll save on EFTPOS fees and keep service prices low for your customers, all while putting money back into your business to spend on other things, like casual staff or overhead costs. Plus, take the hassle out of managing your cash flow with no EFTPOS bill and no more end-of-month admin. That’s one way to streamline business!

Personalised Products & Experiences

For businesses competing in a crowded marketplace, hyper-personalisation is reshaping the beauty industry when it comes to beauty products. A recent report showed that 75% of consumers would spend more on a beauty product that met their customised needs, which highlights the importance of personalisation in the cosmetics, skincare, and haircare industries.

Not only is there a demand for personalised beauty products, but this also extends to the shopping experience, with AI-powered apps helping small businesses build stronger connections between customers and brands. Be mindful, though, that at the heart of your business is a human connection your customers crave, so don’t let AI practices replace this entirely.

Green Beauty Technology
New technology has changed the way beauty products are marketed and sold, but adding to that list is also how they are created. There has been a recent rise in the development of more sustainable products, with consumers realising beauty isn’t just skin-deep. A focus on ‘green beauty,’ which takes into account the environmental impact and health of the individual and planet, plus the increased accessibility of cruelty-free alternatives, allows beauty businesses to cater to the growing preference for eco-friendly options. Technology is also instrumental when it comes to the production of packaging and beauty products themselves, as well as the reduction of waste. The recent consumer realisation is that the balance between looking after ourselves and the planet is interconnected, and thus the shift towards a kinder industry operation as a whole.

In conclusion, incorporating new products and technologies can give beauty businesses a competitive edge. Staying ahead of the curve and offering innovative, tech-driven solutions will appeal to tech-savvy consumers who are always looking for the next big thing to try. As technology continues to evolve, it offers endless opportunities for growth in the beauty industry and the creation of unique, personalised experiences that build customer brand loyalty and, ultimately, your bottom line.

Want to save money on your EFTPOS bill to put back into your business? If you are an ABIC member who signs up with Smartpay, we’ll give you a $500 cashback! T&Cs apply.

This article was graciously contributed by Smartpay, a valued member of the ABIC community. We’re grateful for their insights and the value they bring to our members, community and readers.