Industry Insights
Dec 17, 2024
The Federal Reserve building in Washington D.C., where key monetary policy decisions are made that impact the global economy. Photo by: Jane Doe
From established giants like Fenty and Maybelline to indie darlings, the beauty industry is recognizing the metaverse's potential to reshape how we connect with brands and express ourselves. But what's driving this digital gold rush? As a reporter covering the intersection of beauty and technology, I've uncovered a few key factors:
A Captive, Engaged Audience: Beyond the Scroll
Imagine a world where your target audience isn't just scrolling past your ad, but actively engaging with your brand for 13 minutes or more. That's the power of the metaverse. Platforms like Roblox boast millions of daily active users, many of whom spend more time immersed in these virtual worlds than on traditional social media. Sarah Pasa, Digital Brand Experience Manager at Cosnova Beauty (home to Essence and Catrice Cosmetics), witnessed this firsthand. Their recent Roblox activation garnered over 1 million visits in just nine days, a tenfold increase from their previous attempt. "Users are looking for cozy, engaging experiences," Pasa notes, "and brands can provide that escape."
The Rise of Avatar Identity: Self-Expression Knows No Bounds
The metaverse offers a unique opportunity for self-expression through customizable avatars. This resonates deeply with the beauty industry's core mission: empowering individuals to explore their identity and enhance their features. Tom von Simson, from metaverse analytics platform GEEIQ, observes, "Zepeto, in particular, centers on avatar identity, making it a powerful platform for brands focused on self-expression." With Zepeto users making an average of eight item purchases per week, the potential for virtual beauty products is undeniable. Pasa echoes this sentiment, highlighting the success of Essence’s virtual makeup looks, which sold out rapidly on Roblox.
Bridging the Digital and Physical: From Virtual Try-On to Real-World Purchase
The lines between the virtual and physical worlds are blurring. The integration of platforms like Shopify into metaverse experiences is opening up exciting possibilities for direct-to-consumer sales. "Brands can now create a seamless journey from virtual try-on to real-world purchase," notes Max Proctor, CEO of The Gang, a metaverse agency that has worked with brands like IKEA and Vans. Imagine trying on a new lipstick shade on your Roblox avatar and then clicking a button to buy the physical product. This integration has the potential to revolutionize how we shop for beauty.
Community Building and UGC: A Two-Way Street
The metaverse fosters a sense of community unlike any other digital platform. Brands can leverage user-generated content (UGC) to co-create with their audience, driving engagement and fostering a sense of ownership. “Free UGC is a great strategy to attract younger audiences,” advises Thanh Dao, Head of Gaming & Metaverse at Jung von Matt NERD, “while paid UGC could dominate monetization strategies down the line.” Essence's success with UGC makeup looks demonstrates the power of this approach.
The Challenges Remain: Measuring ROI and Navigating the New Landscape
While the opportunities are vast, challenges persist. Measuring the return on investment (ROI) in the metaverse remains a key concern for brands. "Real measurement and attribution become essential," says von Simson. However, as analytics platforms like GEEIQ evolve, brands are gaining more visibility into user behavior and platform performance. Another challenge is the sheer pace of innovation in the metaverse. Nic Hill, Co-Founder of Sawhorse Productions, cautions brands against rushing into persistent experiences without the resources or expertise to maintain them. He recommends starting with pop-up shops as a way to experiment and learn the ropes.
A Call to Action: Embrace the Experiment
The metaverse is not a fad—it's a fundamental shift in how we interact with the digital world. For beauty brands, it's a chance to build deeper connections with their audience, drive innovation, and unlock new revenue streams. Don't be afraid to experiment, learn from your peers, and embrace the exciting possibilities of this new frontier. The future of beauty is virtual, and it's waiting for you to create it.
