Digitalization in the cosmetics industry

Consumers choose cosmetics because of their pleasant
smell or the soothing feeling on the skin.

bild digitalisierung in der kosmetikindustrie

7. December 2023

Both of these feelings are almost impossible to convey online, which is the main reason many cosmetic companies shy away from digitalization.

However, switching to digital offers enormous potential for improvement. The benefits include time savings, reduced errors, and more satisfied customers. In our article, we take a look at the most relevant digital trends and examine the advantages they offer the cosmetics industry.

Digitization: These trends are shaping the cosmetics industry

Display and sell products online

Even before COVID-19, many companies made their product ranges available in online stores. But since the start of the pandemic, an e-commerce presence has become indispensable. Who doesn’t like to view products from the comfort of the couch, order at the click of a button, and receive them at home? Of course, cosmetics companies also offer online stores to expand their target group and sustainably increase their sales.

Implementation of automated processes

The mountains of tasks is getting higher and higher, and time is running out. It is a reason companies are going digital— because automation reduces the workload and increases efficiency. The trend of using digital tools to achieve more results in less time has arrived in the cosmetics industry.

Individualized cosmetic products

Customized products for maximum satisfaction - that is a major goal of every company. To achieve this, companies in the cosmetics industry use individualized products. These products are tailored specifically to customers' skin type, for example, and include suitable ingredients and active ingredient content. Creams and cosmetics suitable for anyone? This trend creates products that are perfect for the customers.

Artificial intelligence and big data

Lots of data, lots of results? Yes, but the road to get there is rocky. Employees have neither the time nor the technical ability to reliably analyze ever-increasing volumes of data. The cosmetics industry relies on big data and artificial intelligence. This means that even huge volumes of data can be reliably analyzed in a short space of time. The result allows conclusions to be drawn about the needs of customers and is the foundation of increased customer satisfaction.

Virtual 3D models

In the past, prototypes were used to advance the results of research and new developments. A lengthy and risky process - because it costs resources and money. Virtual 3D models and virtual reality not only produce more specific results in less time, but also reduce the costs of prototype production.

augen ki generiert kosmetik

Digitalization in the cosmetics industry: the key benefits

  • High customer satisfaction and loyalty

    By using digital tools to promote customized and innovative products, and increase the speed of order processing, customers receive the best quality results. The result is increased customer satisfaction. And what do satisfied customers do? They remain loyal to the company. Digitization is your path to increased customer loyalty.

  • More efficient and more enjoyable work

    By introducing digital tools, you can implement automated processes and workflows. This is particularly useful for processes that are repeated regularly. Instead of performing each step individually and manually over and over again, simply hand over such tasks to the software. This increases speed, for more efficiency and fewer tedious tasks.

  • Supply chain and warehouse management at a glance

    Companies with products containing a large number of individual components are aware of the complexity of the supply chain. The right software provides logical warehouse management with structure and an overview. This is because it is your central hub for all information relating to a product, the individual production steps, and the number of available assets. Reorders can also be automated. To summarize, even the most complex supply chain becomes the pinnacle of efficiency when handled digitally.

  • More accurate decisions based on robust data

    Precise analyses are not only possible digitally, they are also straightforward to implement. With a digital analysis, it doesn't matter how much data you want to analyze, because tools such as Business Intelligence (BI) software are designed for this. The larger the quantity, the more comprehensive the analysis, and the result. These mechanisms provide you with reliable analyses for the best possible insights. You can use these to improve responses to your target group in the future. The advantage is obvious: a large number of long-term customers, many new customers, and a sustainably successful company.

  • Better product development, shorter development cycles, and increased innovation

    Digitalization brings time savings and more resources to enable you to concentrate on more important tasks. Companies in the cosmetics industry are using freed-up capacities to develop new, better, and more sustainable products and bring innovations to the market. This impresses customers and provides a competitive advantage. 

How software supports digitalization in the cosmetics industry

  • Research & development

    including recipe management for efficient and integrated management of research articles

  • Warehouse and logistics management

    with mobile scanners for faster work, reduced admin work, and full transparency

  • Batch management

    including traceability for maximum transparency along the entire supply chain

  • Quality control

    control with management of test plans and test equipment for the highest safety for you and your customers

  • Characteristic and specification management

    for precise characterization of master data, and an overview of raw material properties and possible applications

The right ERP for the cosmetics industry

Optimize your processes in the cosmetics industry with our ERP solution. Your key to successful digitization and optimized operational processes.

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