For the last few years, blockchain technology has been conquering every sector of our growing society, from finance and education to health care, governance, and even the beauty sector.
Not familiar with blockchain? We got your back, check out our Blockchain article.
In this article, we will be diving into how blockchain is revolutionizing the beauty industry!
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Why Is The Beauty Industry Interested in Blockchain?
With an exceptional growth of $532 billion in the last ten years and an estimation of reaching $750 billion by 2024, it can be argued that the beauty industry has attained its golden years.
Unfortunately, as flourishing as it may seem, beauty brands are still struggling with various issues that limit their growth.
To end these hindrances the said companies started experimenting with different technologies to satisfy their customer’s evolving demands.
And that’s where blockchain comes in!
Blockchain is an open, incorruptible, and decentralized technology. As impressive as it sounds, this technology can protect beauty brands’ provenance and drastically improve their transparency among other benefits.
Benefits of Using Blockchain Technology in the Beauty Industry
1- Product Transparency
The beauty industry, which has been scrutinized for the lack of transparency over the past years, is turning to blockchain technology as a gateway to gain customers’ trust and demonstrate provenance.
Research has shown that ⅔ of women worldwide want greater label transparency. Another survey by Cult Beauty revealed that over 20,000 shoppers have highlighted transparency as a crucial measure for their buying decisions.
So how does blockchain technology ensure transparency?
Blockchain can be considered a transparency machine in which anyone that joins the network can access all information shared on that specific network. Thanks to its encryption and advanced mechanisms, this technology protects transparency by storing information in such a way that it cannot be altered without recording the changes made.
Brands that incorporate a blockchain system give their consumers the privilege of deciphering what is it that they are consuming and what they are putting on their bodies, clearing any concerns that they might have about the ingredients and even the production procedure.
In short, investing in a blockchain system provides the utmost level of transparency, which in return help grow the brand’s customer base and increase their sales.
2- Addressing False Claims
Many beauty brands label themselves as ‘vegan’, ‘cruelty-free, ‘coral reef-safe, etc. but more often than not they are accused of making misleading claims and greenwashing, which can destroy the brand’s reputation.
This issue has prompted companies to start investing in blockchain to back up their claims and meet the expectations of transparency-minded consumers.
As with blockchain technology, consumers can determine the accuracy of the claims made by brands by checking the documented evidence provided. This technology drives the beauty industry to become more accountable for its products and pressure it to make honest claims.
3- Customer Experience and Brand Loyalty
With Blockchain’s promise of enabling transparency, brands are eager to utilize it to gain customer trust and establish brand loyalty.
The adoption of blockchain technology enables companies to share an unlimited amount of information with their customers, and to collect their honest reviews regarding various products.
Making use of this data, companies can hone their marketing and digitization strategies in a coherent and well-structured way.The focus could then be driven to increase profit and improve customer engagement while subsequently decreasing marketing and product development costs.
4 – Anti-Counterfeit solution
Blockchain can be considered an emerging tool to fight counterfeit, its immutability helps brands secure customer trust and ease their concerns regarding product authenticity and sustainability.
This technology allows consumers to access the product’s entire history and verify its authenticity by scanning product tags or checking the product details on the blockchain.
One of the anti-counterfeit solutions that beauty brands can adopt is BrandTag.
BrandTag is a SaaS (software as a service) solution that provides brand owners with the easiest way to prove their products’ authenticity and engage with their customers.
Powered by blockchain, BrandTag Solution gives each product a unique ID for consumers to scan and verify the authenticity of a product. Simultaneously, it enables enhanced consumer engagement and provides data insights to brand owners through its smart packaging concept.
Want to find out more about BrandTag? Check out our article: All about BrandTag