By Bruce E. Teitelbaum and Julie R. Bartholomew, M.D.
Recently, Woman’s Wear Daily illustrated how Coty is leveraging Amazon’s Echo Show Technology, in yet another example of how the biggest companies are all circling around personalization and customization.
We wanted to take this opportunity to compare and contrast Amazon’s powerful combination of its voice-enabled, video-screen product recommendation engine versus empowering consumers with true personalization. At first glance, this difference may appear subtle, but as you dig deeper you’ll see that it’s actually a seismic shift.
SOLVING THE RIGHT PROBLEM WITH THE “WRONG” SOLUTION
In the article, Fred Gerantabee, Coty’s vice president of digital innovation says, “What we like to think is that this will show the consumer the value of certain products in the portfolio and help them get what they want, which leads to shopping.” He is totally right about the problem consumers have and how, historically, Amazon has solved this problem.
The problem that both Coty and Amazon are collaborating to solve is one of customer choice. The average woman uses 16 beauty products every day and will spend up to $300,000 on beauty products in her lifetime. In 2016, the U.S. was considered the most valuable beauty and personal care market in the world, generating approximately 84 billion U.S. dollars in revenue that year.
Despite her sizable investment, most consumers feel overwhelmed with the number of products she has to choose from. In the beauty category alone, Amazon sells over 200,000 products. As this stunning graphic illustrates, seven mega-companies – Estée Lauder Companies, L’Oréal, Unilever, Procter and Gamble, Shiseido, Johnson and Johnson, and Coty – together control a total of 182 beauty companies that produce hundreds of thousands of products worth an estimated $438 billion globally.
What Coty and Amazon have correctly identified is that they can use the power of artificial intelligence to assist consumers in making the best choices for their individual needs. Moreover, Amazon’s recommendation engine is considered one of the most superior technology innovations because it’s driven entirely by its own proprietary sales data. You know, “people who bought X, also bought Y,” bringing your awareness of additional relevant products to your attention.
HERE IS HOW TRUE PERSONALIZATION SOLVES THE SAME PROBLEM 10X BETTER
Rather than using technology to sort through a vast number of “one size fits all” product options, true personalization delivers products that are as unique as the customers they serve.
Moreover, the number one objective that Coty shares with each of its six largest competitors is instilling a sense of brand loyalty so that women are not tempted to shift their $300,000 lifetime investment toward similar products offered by your direct competition.
True personalization solves the same problem 10X better because customers are co-creating with the brands they love. Think about it. If the act of adding 250 of a country’s most popular names on a Coke bottle delivers the most successful marketing campaign ever, imagine the brand loyalty power of leveraging a customer’s own unique data to create a totally unique “made exclusively for you” product.
So instead of a lifetime of wondering if you’ve correctly selected the right 16 out of 200,000 products you have NOT tried, you can remove all doubt by leveraging your own data to co-create the perfect products that fit your unique needs. Instantly, you’ve taken product and brand loyalty to its extreme through co-creation.
Switching brands, therefore, becomes exponentially more challenging as you’re asking customers to question if the product they perfectly formulated for themselves is right for them. Of course it is. Once you’ve decided that you’ve “solved” one of your 16 beauty products, consumers will no longer question if they are using the right one. That is why true personalization solves the same problem 10X better and the holder of our patent portfolio will control substantial growth and loyalty for the foreseeable future.
THE PATENT PORTFOLIO MAKES THE DIFFERENCE
Yes, of course we’re biased. RPG and IMX have joined forces because we believe that together, RPG|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.