Top 10 Ways Beauty Brands Are Leveraging Metaverse

The beauty industry has always been quick to embrace new tech, and now they’re setting up shop in these immersive virtual spaces. Here, customers can create their own personalized beauty experiences. Social media platforms like Instagram and TikTok took the beauty world by storm, but the metaverse offers a whole new level of interaction.

Beauty brands are diving headfirst into the metaverse. Big names like L’Oréal and Estée Lauder are leading the charge, seeing this as a game-changer for connecting with customers. With a potential market worth a whopping $800 billion by 2024, it’s no wonder they’re excited.

Especially for younger generations raised on digital experiences, beauty brands need to adapt and create spaces where individuality can truly shine. Fashion brands might have a head start with some cool NFT stuff, but beauty brands are catching up fast. Sure, there are some hurdles to jump over, but the metaverse holds immense potential for them to carve out their own unique space.

This virtual world lets them bridge the gap between reality and digital, creating deeper connections and truly immersive brand experiences. As the metaverse unfolds, beauty brands are set to play a major role in shaping how we interact with them in the future.

Market Growth Of Metaverse In The Beauty Industry

The metaverse market is on a steep growth trajectory, with estimates suggesting a compound annual growth rate (CAGR) of 41.6% from 2023 to 2030. This signifies a significant expansion in the coming years, primed to revolutionize various industries.

Additionally, the beauty & personal care industry is expected to generate a whopping USD 646.20 billion in revenue this year (2024)! And it’s only getting bigger, with a projected growth rate of 3.33% annually from 2024 to 2028. This steady growth suggests a strong consumer demand for beauty and personal care products worldwide.

According to another report by Technavio, the metaverse market is expected to explode by a whopping USD 12.65 billion over the next few years, growing at a scorching pace of 36.72% annually. This surge is fueled by a mind-blowing blend of AR and VR tech, creating shopping experiences that feel like you’re stepping right into the clothes. Plus, NFTs are adding another layer of excitement, letting you truly own your digital fashion finds. This is a whole new way to experience fashion, and it’s only just beginning!

Top 10 Implementations Of How Beauty Brands Are Embracing The Metaverse

Here are reasons why beauty brands are diving headfirst into the metaverse, along with real-world examples:

1. Personalization And Self-Expression

The metaverse allows for a new level of customization, where users can create unique avatars that reflect their style. Beauty brands can offer virtual makeup, hairstyles, and accessories to cater to this desire for self-expression. 

For instance, MAC Cosmetics launched a virtual lipstick try-on experience within Snapchat, allowing users to experiment with different shades and finishes before purchasing.

2. Hyper-Realistic Virtual Try-Ons

Utilizing advanced augmented reality (AR) and virtual reality (VR) technologies, beauty brands can provide hyper-realistic virtual try-on experiences that allow users to test out products in a virtual environment seamlessly. For example, this technology can facilitate trying on lipstick or eyeshadow without ever leaving your couch. Similarly, the metaverse here offers advanced virtual try-on technology that lets users see how products would look on their avatars before committing to a purchase. 

L’Oreal’s ModiFace technology is a prime example, allowing users to test out different makeup looks through their smartphone cameras.

3. Expanding Reach To New Demographics

The metaverse opens doors to a whole new audience, particularly younger generations who are comfortable in virtual spaces. Beauty brands can leverage this platform to target these demographics and build brand loyalty early on. 

For example, the popular game Fortnite has seen collaborations with beauty brands like MAC Cosmetics and Sephora to offer virtual items within the game.

4. Building Inclusive Beauty Communities

The metaverse is destined to cross the physical or traditional limitations, building a space where people of all backgrounds can connect and celebrate their individuality. Beauty brands are already embracing this diversity and inclusion by creating virtual communities that cater to various beauty ideals. 

Dove partnered with IMVU, a virtual world platform, to launch a campaign promoting body positivity within the metaverse.

5. Interactive And Immersive Shopping Experiences

The metaverse allows for the creation of virtual pop-up shops and interactive experiences where buyers of beauty products can explore products, engage with brand representatives, and even participate in virtual events. 

Nars Cosmetics hosted a virtual store within Roblox, allowing users to purchase limited-edition makeup for their avatars.

6. Metaverse Influencers And Brand Advocacy

Traditional influencers have dominated the beauty sector for years. However, the metaverse introduces a new wave of brand advocates: metaverse influencers. These are computer-generated characters strategically designed to resonate with specific demographics within the virtual world. Suppose you are keeping up with the trends, in that case, you will know that virtual influencers are trending already, so your beauty brands can partner with these metaverse celebrities to promote your products and reach new audiences more engagingly. 

For example, the world’s first virtual influencer, Lil Miquela, sported Fenty Beauty products in her social media posts, generating significant buzz for the brand.

7. Product Innovation And Experimentation

The metaverse acts as a playground for beauty brands to experiment with new product ideas and concepts. Virtual reality allows for the creation of fantastical makeup looks and effects that wouldn’t be possible in the real world. 

Maybelline New York launched a VR experience where users could virtually try on outlandish makeup looks inspired by the New York Fashion Week.

8. New Revenue Streams

The metaverse opens doors to exciting new forms of monetization. Beauty brands can sell virtual makeup items, accessories, and even NFT-based collectibles to generate revenue within the metaverse. 

Clinique’s “Metaverse Like Us” NFT project offered unique digital makeup looks as NFTs, attracting a new customer base.

9. Data Collection And Customer Insights

By analyzing user behavior within the metaverse, particularly how they interact with virtual beauty products, virtual try-on preferences, and avatar customization choices, brands can gain a deeper understanding of their target audience and tailor their offerings for maximum impact. 

Estée Lauder partnered with Decentraland, using user behavior data to gain insights. They analyzed virtual lipstick shades and makeup preferences and engagement with virtual events to understand user preferences in the metaverse.

10. Staying Ahead Of The Curve

Beauty companies have analyzed the fact that winning over loyal customers is more important than ever. By embracing the metaverse not just as a place to sell but as a growing community, beauty brands are leading the way, earning the trust and support of early fans. This head start lets brands shape how beauty works in virtual reality, guiding what people like and do as the metaverse grows. Plus, the metaverse gives beauty brands a special chance to really connect with customers, offering helpful advice and fun stuff that builds trust and brings people together. 

For example, NYX Professional Makeup teamed up with Roblox to make a virtual world where users can try out products, learn new tricks, and get rewards. By diving into the metaverse and focusing on making fans for life, beauty companies can stay ahead, building strong bonds with customers that go beyond the virtual world and into real life.

Top 10 Trends Beauty Brands Are Utilizing Metaverse

The metaverse is a growing digital world with immense potential for the beauty industry. Here are some most in-demand trends that are making beauty brands soar in revenue with the help of Metaverse

1. Virtual Try-On Experiences

Virtual try-on experiences have become a game-changer for the beauty industry in the metaverse. Users can experiment with a range of digital cosmetics, hairstyles, and even skincare routines in a risk-free environment. Brands like L’Oréal have developed virtual try-on apps that allow users to see how different products would look on their faces in real time, with over 600 million virtual try-ons conducted globally in 2023. This not only increases customer confidence in their purchases but also reduces the risk of buying a product that doesn’t suit their complexion or style.

2. Interactive Virtual Stores

The metaverse allows beauty brands to create immersive virtual stores packed with interactive displays and features. Several beauty brands have developed virtual stores, replicas of their physical stores. They are loaded with interactive display units that give users a seamless virtual try-on experience. MAC Cosmetics, for example, launched a virtual flagship store within the online platform Second Life, where users can explore different product categories, virtually test products, and even receive personalized recommendations from a virtual beauty advisor.

3. Personalized Beauty Consultations

The metaverse opens the door for personalized beauty consultations on a whole new level. Brands like yours can also host virtual events like FAQ sessions with skincare experts, new product launches, beauty tutorials, and more in the metaverse. Your customer can consult with a virtual beauty expert who can analyze their skin in real time using advanced AI technology and recommend a customized skincare routine. Additionally, AI-powered tools can personalize product recommendations based on your individual needs and preferences, similar to experiences offered by some current beauty retailers.

4. Metaverse-Specific Beauty Products

The metaverse offers a blank canvas for entirely new beauty products. Brands can create digital makeup and accessories specifically designed for avatars. This could include anything from holographic eyeshadows and neon lipsticks to virtual piercings and hairstyles. For instance, Gucci partnered with Roblox, a popular online gaming platform, to create limited-edition digital Gucci Dionysus bags for avatars, demonstrating the potential for exclusive virtual beauty products that can enhance the user’s online persona.

5. NFT-Based Beauty Experiences

NFTs (Non-Fungible Tokens) are shaking things up in the metaverse. Beauty brands can leverage NFTs to offer exclusive beauty products or experiences. For example, MAC Cosmetics launched a limited-edition NFT collection that included digital lipsticks and a virtual makeup masterclass, selling out within minutes. This allows brands to cater to a tech-savvy audience and create a sense of exclusivity by offering unique digital collectibles.

6. Metaverse Influencer Marketing

The rise of digital avatars presents a unique opportunity for influencer marketing. Brands can collaborate with virtual influencers like Lil Miquela, the world’s first virtual influencer with over 3 million followers on Instagram, to promote their products and connect with a younger demographic that spends a significant amount of time in the metaverse. These virtual influencers can be programmed with specific personalities and aesthetics, allowing brands to target specific customer segments.

7. Educational Content & Tutorials

The metaverse isn’t just about shopping; it’s also a platform for education. Beauty brands can create interactive tutorials within the metaverse, teaching users how to apply makeup, care for their skin, or achieve different hairstyles. Sephora, for example, has experimented with hosting virtual beauty workshops in the metaverse, showcasing eyeshadow application techniques and skincare routines. This not only increases brand engagement but also positions brands as beauty experts and trusted sources of information.

8. Community Building & Events

The metaverse establishes a sense of diverse and inclusive beauty communities where individuals from all backgrounds can come together to celebrate their unique beauty ideals. Beauty brands can leverage this by hosting virtual beauty events, workshops, and masterclasses. This allows brands to connect with their customers on a deeper level and create a loyal following. For example, you can host virtual makeup competitions or product launch parties within the metaverse, encouraging user engagement and interaction.

9. Gamification & Rewards

Gamification is a powerful tool for boosting engagement. Beauty brands use the metaverse to tap into a digitally savvy audience, particularly female gamers. 80% of female internet users between the ages 16 to 44 play video games, as per a report by We Are Social. So, a beauty brand like yours can incorporate games and challenges into your metaverse experiences, rewarding users with virtual products, discounts, or exclusive content. This not only makes interacting with the brand more fun but also incentivizes repeat visits and purchases. For instance, a brand could create a virtual scavenger hunt within their metaverse store, rewarding users with virtual currency or discounts on real-world products.

10. Data Collection & Customer Insights

The metaverse offers a treasure trove of data for beauty brands. By tracking user behavior and preferences within their virtual stores and experiences, brands can gain valuable insights into consumer behavior and preferences. This data can then be used to personalize product offerings, tailor marketing campaigns, and ultimately increase customer satisfaction.

Top 15 Beauty Brands That Are Using Metaverse

Beauty companies are diving into the metaverse because they view it as an exciting new way to engage with customers. Each brand that has invested in the metaverse has its own way of utilizing the technology to its advantage, and there’s no one-size-fits-all method. Here are some of the most significant metaverse-related stories in the beauty industry over the past year:

1. P&G Introduces BeautySPHERE

At CES 2022, P&G Beauty showcased its latest innovation: BeautySPHERE, a virtual storytelling environment. Representing the company’s initial foray into the metaverse, BeautySPHERE allows users to interact virtually with P&G Beauty’s diverse portfolio of brands through a blend of live and simulated content.

Accessible from any desktop, BeautySPHERE offers an immersive journey centered around Responsible Beauty and P&G Beauty’s commitment to positive beauty practices worldwide. Through dynamic content, live panel discussions, and interactive challenges, visitors gain insights into the interconnected principles of Sustainability, Safety, Transparency, Quality & Performance, and Equality, Inclusion & Wellbeing.

2. Paris Hilton Hosts Metaverse Party in Partnership with Urban Decay

Last October, Paris Hilton threw a Halloween bash in the metaverse alongside Urban Decay cosmetics. Guests could venture into “Paris World” within Roblox to attend the “Cryptoween” metaverse event, a collaboration between Hilton’s 11:11 Media and Urban Decay. Hilton herself made regular appearances through her avatar at the virtual world’s selfie booth.

This marked the first Roblox activation sponsored by a L’Oréal Group-owned brand, highlighting the growing interest of major beauty and fashion labels in Roblox for metaverse marketing.

3. Fenty Beauty Files Trademark for Virtual Cosmetics and Hair Care Products

Rihanna’s Fenty Beauty made headlines last year by filing a trademark for virtual cosmetics, signaling a potential move into the metaverse. Trademark applications submitted through Roraj Trade LLC include “downloadable virtual goods” such as cosmetics, makeup, and hair accessories for use in virtual worlds, online platforms, NFTs, and digital media.

Additionally, Fenty Beauty applied to sell “online, non-downloadable virtual goods” within the metaverse. While there’s no recent news on Fenty’s metaverse plans, the brand’s reputation for staying at the forefront of trends keeps anticipation high.

4. Buxom Cosmetics Launches Metaverse Experience in Decentraland

In early 2023, Buxom Cosmetics partnered with Publicis Sapient to unveil Buxom PlumpVerse within Decentraland’s virtual world. Buxom PlumpVerse features three distinct floors: a lounge area with a plumping lip bar inspired by Buxom’s Plump Shot Sheer Tints, a dance floor with a DJ, and an immersive virtual try-on store. Users can explore, interact, sample shades, and engage in gamified experiences.

5. L’Oréal’s Corporate Venture Capital Fund Invests in Metaverse & NFT Marketplace Startup

L’Oréal’s corporate venture capital fund BOLD (Business Opportunities for L’Oréal Development) made a strategic investment in Digital Village, a U.S.-based startup offering metaverse-as-a-service and an NFT marketplace. This move marks L’Oréal’s first step into the metaverse and Web3 space through venture capital.

6. L’Oréal Professionnel Launches Virtual Hairstyles

L’Oréal Professionnel introduced five virtual hairstyles across major metaverse platforms, offering users opportunities for self-expression. The Gravitas campaign, developed with Wunderman Thompson, aims to empower metaverse users to embrace unconventional styles.

7. Estée Lauder Offers NFTs at Decentraland Metaverse Fashion Week

In March 2022, Estée Lauder joined Decentraland Metaverse Fashion Week, unveiling its first wearable NFT. Attendees were invited to explore the Advanced Night Repair “Little Brown Bottle” virtually, earning digital badges or Proof of Attendance Protocol (POAP) and claiming an NFT wearable that gives their avatars a radiant glow inspired by Advanced Night Repair. A limited quantity of 10,000 complimentary Advanced Night Repair NFT wearables was available for a claim during Metaverse Fashion Week.

8. Matrix Introduces Demi Permanent Gel Toner Collection via Metaverse Event

Matrix introduced its Tonal Control Pre-Bonded gel toner collection to stylists through an exclusive metaverse event. The event provided immersive learning experiences, networking opportunities, and giveaways, emphasizing Matrix’s commitment to innovation.

9. Living Proof Launches Virtual Store

In April 2023, Living Proof collaborated with ByondXR to launch a virtual store offering an immersive shopping experience. Customers can browse products, learn about the brand’s history, take an AI Hair Quiz, visit Living Proof’s salon, and purchase products directly from the virtual store.

10. Clinique Introduces Digital Retail Concept

In April 2023, Clinique launched The Clinique Lab, a digital retail concept accessible online and via mobile devices. The virtual storefront offers a photorealistic 3D environment where users can explore, engage in gamified experiences, consult with Clinique Consultants, and shop seamlessly.

11. Lush Launches Space in Decentraland

In March, Lush Cosmetics entered the metaverse by launching a space in Decentraland, a decentralized autonomous organization. The digital store replicated Lush’s SXSW house activation in Austin, Texas, providing users with a sneak peek at new products and engaging in a digital quest.

12. Elizabeth Arden Debuts Virtual Store

Elizabeth Arden launched its first immersive virtual store experience in partnership with Obsess. The fully shoppable experience allows customers to explore products, learn about the brand’s history, and engage with interactive content.

13. Laneige Launches Virtual Store in the Metaverse

Laneige, a skincare brand owned by Amorepacific U.S., has recently debuted its inaugural immersive virtual store powered by Obsess. This virtual store boasts features such as animation, 360-degree video functionality, gamification elements, and a seamless checkout process. It comprises five custom-designed rooms, each tailored around specific Laneige products and accompanying video content.

14. Coty Creates Internal Metaverse for Employees

Coty Inc. partnered with Spatial to create an internal metaverse for its global workforce. The virtual campus integrates text and voice chat, screen sharing, customizable avatars, and gamified collaboration tools to enhance employee engagement and innovation.

15. Amika Introduces Roblox Experience in the Metaverse

In January 2024, Amika, a B Corp-certified hair care brand based in Brooklyn, made its entry into the metaverse with the launch of “the amikaverse” on Roblox in collaboration with experiential e-commerce company Obsess.

“The amikaverse” offers users an opportunity to delve into the brand’s ethos as they craft and share their digital hair care creations, partake in unique challenges, and interact with various characters within the immersive amikaverse environment.

Conclusion

The beauty industry’s dive into the metaverse is a game-changer. From customized virtual makeovers to captivating shopping experiences in the digital world and even partnerships with virtual beauty stars, brands are using the metaverse to connect with customers in groundbreaking ways. As shown by the various examples, the metaverse offers endless possibilities for innovation, building communities, and driving sales. By accepting this digital wave, beauty companies are not just shaping the future of their field but also transforming how we connect with beauty products and brands in this digital era.

How Can Idea Usher Help In Developing A Metaverse For A Beauty Business?

At Idea Usher, we know how powerful the metaverse can be for your beauty business. We’re experts in developing metaverse projects that suit your brand perfectly. Our expertise in web and app development with innovative technology like AI, AR, VR, and blockchain can boost your business to another level.

So, if you want virtual stores, interactive experiences, or fun campaigns, we are your go-to team. We can help you stand out in the metaverse, connect with customers, and grow your business.

Let’s work together to make the most of this exciting new world for your beauty brand. Connect today!

FAQ

Q. What is the potential of the beauty industry in the metaverse? 

The beauty industry holds promise as a significant player in the metaverse. Despite facing certain obstacles, it can explore limitless opportunities to bridge the gap between real life and the digital world.

Q. How can the beauty industry benefit from a presence in the metaverse? 

The beauty industry, already influential, stands to gain even more from venturing into the metaverse. Establishing a presence there could enhance brand recognition and foster deeper engagement with audiences, expanding their reach and impact.

Q. How are beauty brands adapting to the metaverse? 

Beauty brands are swiftly adjusting to the metaverse by embracing new digital platforms and technologies. They are creating immersive virtual experiences, collaborating with metaverse influencers, and exploring innovative ways to engage with consumers in this virtual environment. Companies like Charlotte Tilbury, Lottie London, YSL, Estée Lauder, Gucci, and Nars are fully embracing this immersive environment.

Q. What are some challenges the beauty industry faces in the metaverse? 

Some challenges the beauty industry faces in the metaverse include limitations in avatar realism and the evolving nature of digital spaces. Achieving lifelike representations and navigating the dynamic landscape of virtual environments pose hurdles for brands aiming to establish a strong presence and engage effectively with consumers.