The beauty industry is a multi-billion dollar ecosystem. But then, beauty & cosmetics companies witnessed struggles, like many other retail businesses, due to the pandemic. As people stayed indoors for long periods (due to the work-from-home option) and incessant lockdowns, the beauty industry had to figure out ways to adapt. Embracing the NFTs for beauty industry is one such tech-backed for the ecosystem to bounce back. This blog extensively deals with the role of NFTs in the beauty industry and where it does head from now!

Why Is The Beauty Industry Embracing Non-fungible Tokens?

Non-fungible Tokens (NFTs) are blockchain-linked assets that encompass ownership details linked to metadata. NFT beauty is the blending of beauty products with applications of digital assets. This modern-day integration opens lucrative ways for beauty brands to bolster their customer experience.

Cryptocurrencies like bitcoin and Ethereum are built on the blockchain, a digital ledger system. However, it is capable of much more than merely exchanging money.

Blockchain provides beauty firms with a special way to track everything from product information to the client buying patterns and even create new classes of products. Blockchain is a technique for sharing and storing encrypted data in real-time.

Early Adopters Are Driving the Trend

In the history of e-commerce, the cosmetics sector has caused disruption. Beauty firms have always been adept at understanding consumers’ wants, whether through cutting-edge loyalty programs or curated subscriptions.

While not every brand focuses on monetizing the non-fungible tokens, some focus on embracing NFTs for beauty in building brand awareness. Nivea (the German personal care brand) has launched the ‘value of Touch’ NFT, conveying the real importance of touch. The artist who designed this NFT is a victim of visual impairment – who could be a better pick to draw one such cause-driven NFT?!

Technology innovators like L’Oréal Paris are well-known. The brand’s predisposition to favor virtual solutions was already evident in its “Signature Faces” augmented reality makeup collection. This French company recruited female digital artists for their inaugural NFT collection. The goal of this collection was to emphasize women’s emancipation. 

The American cosmetics brand E.l.f. Cosmetics launched three limited-edition NFT versions of their products. In June 2021, the brand launched & sold the NFT iterations as Crypto cosmetics. The primary aim was to democratize the beauty industry with value-driven non-fungible tokens. 

Could Be A Lucrative Marketing Channel

The post-pandemic reality is that beauty brands are finding it difficult to promote their products and engage their customers. For instance, running paid advertisements on Facebook and Instagram is getting expensive with a not-so-easy competitive landscape looming around. 

“NFTs could Decentralize the Customer connection points for Beauty brands.”

Maintaining the connection with target customers is becoming increasingly difficult for beauty brands. While embracing traditional marketing practices, brands are subject to centralized customer touch points – where third-party platforms own timeshare with their customers. 

However, with non-fungible tokens, brands will leverage decentralized touch points – that reach the brand identity directly to the customers. Moreover, brands can bestow delightful surprises on their most loyal customers. Brands must remain faithful to who they are, according to Annells. Brands shouldn’t engage in NFTs only for the sake of doing so or try to appeal to an audience that is not their target market, he recommended.

The Complete Gratification with Ownership

Some people may feel a gap between NFTs and the beauty customer in a market where a brand’s and beauty product’s success depends on the physical and visible result. NFTs are the token verifying the original file, giving the owner nothing more than ownership, but this is where it alters the projection for aesthetics. 

NFTs allow customers to invest in a brand through digital collectibles, virtual goods, or developing asset classes rather than just through products, opening up new, fascinating, and limitless opportunities for hyper-connection.

Conclusion

At first, we thought – oh! How could NFTs find their way through the beauty & cosmetics industry! But then, there is a great potential for NFTs in the beauty industry for creative exploration and consumer engagement in the space. 

At AppDupe, we help entrepreneurs tokenize ‘whatever’ their ideas. With beauty NFTs, we have a handpicked team of NFT experts who could help you through the project.

FAQs:

• Could Beauty NFTs serve as the Ticket to Metaverse?

The Metaverse is a virtual landscape where people can relish and experience their NFTs virtually. A beauty brand Dior has created a Metaverse platform, which deploys customized avatars to unlock virtual experiences. 

• How to Market Beauty NFTs?

NFTs in the beauty industry are going mainstream – also the way to market them. We at AppDupe deploy famous beauty influencers to promote #beautyNFTs. Also, we use some other marketing streams like email marketing, content marketing, and discord marketing. 

• How Much Does it Cost to Develop A Beauty NFT?

It depends on what you wish to create as an NFT, the complexities involved, the utilities you want, and much more. Feel free to receive exact price quotations at any time!