By Bruce E. Teitelbaum and Julie R. Bartholomew, M.D.
According to a recent study by Sailthru, “Companies fully invested in all types of personalization by 2018 will outsell their competitors by at least 30% — and they’re already seeing revenues grow two to three times faster than organizations that are lagging in adoption.
So just how BIG is the personalization market anyway? It depends on your definition and which experts and research groups you prefer to reference.
According to FastCompany:
“If you look at any other industry, from social media to fashion, from technology to food, you will notice that customization is definitely the trend and the future,” [Function of Beauty founder Zahir] Dossa says. “Beauty is the only industry that is lagging, and the boom of Birchbox and others demonstrates that people are still searching for the perfect products. The problem is that the only way to make a perfect product for someone is to tailor it just to them.”
In other words, when start-ups as well as established companies are experiencing triple digit growth associated with their personalization and customization efforts, the experienced personalization experts are arguing that it will impact the entire $438 billion global beauty industry.
KEY INSIGHTS FROM DELOITTE
In Deloitte’s research, Made to Order: The Rise of Mass Personalization, Deloitte found that 1 in 5 customers who expressed an interest in personalized product or services are willing to pay a 20% premium, so price clearly isn’t the barrier. And, 42% of consumers who are interested in customized products or services would still rather be led by brands and choose from a selection of options. Perhaps the most interesting insight came from the executive summary:
“Empowered by social networks and their digital devices, consumers are increasingly dictating what they want, when and where they want it. They have become both critics and creators, demanding a more personalized service and expecting to be given the opportunity to shape the products and services they consume. Deloitte research shows that in some categories more than 50 percent of consumers expressed interest in purchasing customized products or services. Moreover, not only would the majority of consumers be willing to pay more for a customized product or service, they would also like to be actively involved in the process.”
Deloitte’s conclusion here was that while different industries and categories move slower than others, just about every industry would eventually be impacted (disrupted?) by personalization. This supported the Boston Consulting Group published report called Profiting from Personalization, whose recommendation was to, “…put brand individualization at the forefront of their strategy agenda to influence everything that they do, including marketing, operations, merchandising, and product development.”
RESEARCH GROUP PSFK BELIEVES CUSTOMIZATION IS RESHAPING THE BEAUTY INDUSTRY
In their report, Beauty Debrief, PSFK discusses how the beauty industry is pioneering personalization to effectively build relationships with consumers. “From fashion to food, it’s clear that customers don’t want generic, mass-produced goods, but seek individualized products, services and experiences that they can tailor to their own unique lifestyles … resulting in a profound change in the relationship between brands and their customers.”
This is why we are so excited!
After 18 years of investment in the patent portfolio, the beauty industry is experiencing the incredible power of customization and personalization. Beyond the current personalization tends, brands are seeing lifts in their revenues by as much as 10%, and by all accounts this is only the beginning.
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 email@example.com or call (212) 246-3780.