By Bruce E. Teitelbaum and Julie R. Bartholomew, M.D.
In May of 2017, the Boston Consulting Group published a report called Profiting from Personalization, in which they conclude:
“Personalization is causing a seismic shift across the landscape of consumer-facing brands, and we are only starting to feel the shocks. Already brands that create personalized experiences by integrating advanced digital technologies and proprietary data for customers are seeing revenue increase by 6% to 10%, according to our research—two to three times faster than those that don’t. As a result, personalization leaders stand to capture a disproportionate share of category profits in the new age of individualized brands while slow movers will lose customers, share, and profits.”
What is fascinating about this research is that it is NOT category specific. Moreover, when most brands talk about personalization, more often than not they are conceiving personalized marketing (i.e. circa 1994 via Peppers & Rogers 1:1 Future). This report was quick to squash that thinking:
“Personalized marketing is a good starting point, but ultimately personalization is more than a marketing challenge. For incumbents to defend—and expand—share, they need to reimagine their business with an individualized value proposition at the core, merging physical and digital experiences to deepen their customer connections. They need to put brand individualization at the forefront of their strategy agenda to influence everything that they do, including marketing, operations, merchandising, and product development.”
APPLYING THESE INSIGHTS TO THE $438 BILLION GLOBAL BEAUTY INDUSTRY
We agree with Guive Balooch, who in October 2017 was quoted in a WWD article saying, “Whichever company can take the lead in the marketing of customizable skin care products will develop an enormous commercial advantage.” The context of that article was about L’Oréal halting Shiseido’s hire of a former executive because, according to L’Oréal, its plans for tech-driven foundation would be at risk.
When the lawsuits show up, you know big businesses are serious about protecting what they perceive to be the future of the industry. In this case, we believe that the 10% revenue shift is only the beginning.
The very foundation of customer loyalty will be decided as big data is turned on its ear. The future of technology will be less about how companies use data for better marketing practices selling static products, and more about supporting your best customers to leverage their own data in order to deliver truly personalized and customized products down to the very formulation made custom right before your customers’ very eyes inside a retail environment.
Think about it. In the future are you more likely to be fiercely brand loyal to a company selling generic products, or to one that supports you to create your very own product that uniquely reflects your own skin color, texture, scent, level of hydration, and all of the best possible profile information that goes into your absolute ideal product solving your own unique challenges?
THE PATENT PORTFOLIO MAKES THE DIFFERENCE
Yes, of course we’re biased. RPG and IMX have joined forces because we believe that together, RPG x IMX’s patent portfolio and decades of in-store retail excellence will disrupt the $438 billion global beauty industry.
This is why we set the minimum bid for this patent portfolio at $500 million. We hired an independent third party consultancy who took an extremely conservative view and ended up well north of this minimum bid. We’d be happy to share this research with you should you be interested in receiving our due diligence package.
If you would like an opportunity to participate in this process, please email firstname.lastname@example.org or call (212) 246-3780.