The coronavirus outbreak is likely to drive biotechnology and blockchain investments in the beauty industry as consumers demand safety and transparency amid growing fears.
Blockchain technology remains an expensive and experimental affair in the beauty industry. For the moment, it remains relatively niche. However, it doesn’t take away the fact that the technology has massive benefits to offer in terms of enhancing security and rebuilding trust in beauty products, especially at a time when humankind is fighting one of the most significant battles – COVID-19.
COVID-19 to trigger blockchain investments in beauty industry
According to Jenni Middleton, who is the director of beauty at WGSN, design, and consumer trend forecasting firm in New York, the post-pandemic market for beauty would be completely different than what it was before.
Speaking at WeCosmoprof last week, a virtual event for the worldwide beauty community, Middleton said that COVID-19 had changed the way people perceive cosmetics and shop for beauty products.
It’s not just about what looks good now. People want to know how, where, and what the product is made of. And that is what is going to spark blockchain investments as well as biotechnological advancements in the industry, she said.
The five overriding principles
Commenting further on the five consumer trends that will drive the industry growth and evolution, Middleton said that safety, transparency, reliability, overall wellbeing and financial security would remain the five driving forces behind every beauty product purchase.
Out of these, Middleton draws explicitly more attention to safety and transparency in supply chain distribution as post-COVID, consumers have become increasingly wary of infectious diseases. They want to know what ingredients go into making that product and how safe they are.
Thus, blockchain investments and biotech research are two fields that beauty brands need to focus on to meet future consumer demands. Consumers will demand evidence, and these are the only two technologies that can cater to that need, Middleton affirmed.
Reviewing the marketing strategies
Besides knowing about the genuineness of the product, Middleton continues, consumers are also highly critical of the way they are marketed to them.
So, instead of spending millions of dollars on celebrity campaigns, it would make a massive difference if the brands advertise the underlying technology and its benefits to users.
Preservatives to make a comeback
Speaking further on future trends in the cosmetics industry, Middleton claims that preservatives are likely to see a wholehearted welcome again in the post-pandemic world. People want to ensure that they no longer fall prey to virus transmissions or zoonotic diseases, which is why preservatives like sulfates and parabens will see a return.
Moreover, products that boost immunity or act as anti-viral and antibacterial agents will also be seen in a positive light, she added. However, for all that to turn into a success, bioinformatics and blockchain investments are crucial.
Blockchain technology, with its immutability and decentralization, can offer users the transparency they need at this age. With end-to-end traceability, stakeholders can be sure of the quality and authenticity that pinpoint the product safety aspect.