Digitally empowered packaging

Have you wondered about the exponential development of technology? Artificial intelligence in the form of special algorithms and big data outperforms medical practitioners in cancer diagnosis. Toilet seats can sequence your DNA every time you go to the loo to make sure any conditional health change is recognised immediately. And what about cars driving autonomously? Or drones bringing instant online shopping satisfaction? These developments are amazing, aren’t they? And then again, if you go shopping at your local supermarket and stand in the cosmetic aisle – doesn’t it feel like being back in the 80s? Of course, the looks are different and some applications have evolved. But honestly: the tubes, creams, treatments and brushes – are they radically different from what they were 30 years ago? We are talking incremental innovations, if anything. Not even the offline shopping experience has changed. It doesn’t feel like 2016 at all. However, there is good news: this will all change. Digitalisation empowered by evevolving technology will transform the cosmetics industry, starting with the User Experience (UX) throughout the entire customer journey. Interestingly enough, it is packaging which will play the biggest role in making this happen.

Things are changing radically due to Generations Z*and Alpha**. They are truly digital. They will be educated and informed like no generation before. They think and act differently and have different needs; they swiftly accept new developments and adopt new behaviour. Just look at cosmetics bloggers: they can promote a lipstick in such a way that it sells the same quantities in just one week which with traditional marketing would have taken a year or more. This shows that today there is a gap between the digital lifestyle, the product and the shopping experience. Digitally empowered packaging will help to bridge these gaps in the first and second stages. There are three ultimate properties only digitally empowered packaging can deliver: 1. It will connect. 2. It will generate seamless brand and product experiences. 3. And it will facilitate true cosmetic innovation.

Imagine a hair colouration system that guides consumers step by step through the entire colouring procedure. The packaging interacts with the consumer’s smartphone, showing detailed how-to videos and starting an individualised timer for the preset colouration result. All this without ever touching the phone, as this would be impossible due to the colouration gloves being covered in chemicals (see Fig. 1). Communicating in real time with digital natives answers their digital needs and brings added value by providing personalised solutions. There are countless similar opportunities in any cosmetic category.

This is just the beginning. Today, many tech companies are working on solutions for the smartphone era. When everything that can be connected to the Internet is connected, then true new cosmetic innovations are not far away. What if the pigments of your makeup changed to match the colour of what you wear because both are digitally connected? Imagine a rejuvenation mask with performance that, once applied to your face, could be adjusted via swiping controls on its packaging.

Even though all of this may sound like science fiction, it makes one very strong point: digitally empowered packaging will help to shape truly innovative cosmetic products and their experience – not only at the POS but throughout its usage. We have to adjust our thinking. Every industry on the planet is forced to respond to the changes caused by the process of digitalisation, no matter if it involves cars, farming or the finance industry. It is not about a single feature but about the value proposition generated for users. This change is inevitable. If you wonder where to start, the answer is simple: start with a first step and then add one after the other. Once the target group with its intense digital lifestyle is identified, a first-step NFC packaging that connects and bridges digital gaps needs to be developed.

AUTHOR:
Karel Golta, Managing Director, Indeed Innovation, Hamburg, Germany,
karel.golta@indeed-innovation.com, www.indeed-innovation.com