Unveiling Digital Beauty: Navigating Loreal's Failures and Sephora's success with DX Flywheel Framework Vision

Digital beauty innovations promise a revolution, yet many fall short, leaving consumers wanting more. Discover why digital product failures plague the beauty industry and how to ensure your innovation hits the mark.


Beauty Industry Insights:

• McKinsey & Company reported around 45% of digital initiatives in the beauty industry fail due to a misalignment with market needs and consumer preferences, indicating a lack of clear vision.
• Nielsen reports that 38% of digital products in the beauty industry fail due to a lack of understanding of consumer behavior and preferences, leading to a weak vision in product development.

​Due to lack of VISION, a real-life failure of a digital product in L'Oréal


Digital Product: Makeup Genius App


Challenge Loreal Faced:

• Launched in 2014, L'Oréal's Makeup Genius App aimed to revolutionize the beauty industry by allowing users to virtually try on makeup using augmented reality.
• However, without a clear digital product vision, the app failed to meet customer expectations.
• Despite initial excitement, the Makeup Genius App failed to gain significant traction, with only 5% of app users making a purchase.
• The app's conversion rate of 5% fell far below industry standards, resulting in disappointing sales and user engagement.

Why Failed?

• - Despite its innovative technology, the Makeup Genius App struggled to retain users and convert app usage into sales due to unclear marketing and user experience.
• - Lack of a user-centric vision led to a product that failed to resonate with beauty enthusiasts, resulting in low user engagement and conversion rates.

Solution for this:

This is how SEPHORA used Vision in their DX Products

• Sephora's Virtual Artist App offers a similar virtual try-on experience but with a user-centric approach.
• By focusing on user experience and integrating customer feedback, Sephora has seen significant success.
• Sephora's Virtual Artist App has a conversion rate of over 15%, with 70% of users making a purchase after trying on products virtually.
• With its user-centric design, Sephora's Virtual Artist App has become a staple for beauty enthusiasts, capturing over 20% of the virtual try-on market

Let's Learn from L'Oréal's mistake and ensure your digital product's success with a clear vision and consumer-centric approach! 💄✨

P.S. Among those strategies, which one will be most affordable for you to apply to your company?



References

• Source: Beauty Industry Report
• Source: Sephora Annual Report
• Source: Beauty Market Analysis

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Author Details
John Masud Parvez, Top International Coach and Business Expert 
More Details: 

• In professional career: Top Business Transformation Expert, CIO
• In entrepreneurial life: Founder of VSHR Group
• In passion life: Keynote / Tedx speaker, Professional Coach