New research – how consumers want to shop for beauty products in-store - technology plays a role

New research reveals shoppers have a preference for discovery-led, high-touch and interactive experiences in-store as they seek out ways to cut through confusion in the beauty category and overcome choice paralysis.

Before committing to buy, the opportunity to test and try out a new product in-store is a prerequisite for conversion for almost all (92%) beauty shoppers; and for more than eight-in-ten beauty shoppers (86%) options to consider and compare products are also important, up 3% on last year.

The findings are part of a study conducted by retail innovation agency Outform, which explored the changing habits of beauty shoppers over 12 months. The survey covered a representative spread of 1,000 respondents across the UK, USA, France and Germany.

The desire to explore and better understand product features and benefits is driving the preferences of beauty shoppers in-store across all markets, especially for first-time purchases of new-to-them brands or products.

However, the survey reveals that beauty brands and retailers are falling short of delivering either the knowledge or experience in-store shoppers are looking for.

Almost six-in-ten (58%) beauty shoppers arrive in-store with a shortlist of the products and brands they would like to consider, but a third (31%) are frustrated when unable to do so; in the future more than half (54%) would like to see brands and retailers provide better access to experiences that allow trial and testing out of products.

Digital experiences are seen as a key enabler for mission-driven shoppers who believe they can bridge the knowledge gap and provide a rounded and more complete in-store experience.

More than eight-in-ten (85%) beauty shoppers say digital interactions, including digital screens, QR codes and Augmented Reality (AR), can help them explore new products and better understand a product's features and benefits, up 6% on last year.

Clare Cryer, VP of Growth, EMEA at Outform, says: “2024 is set to be a game changer of a year for beauty. The arrival of AI-driven beauty tools is about to open up a whole new world of personalisation for shoppers and drive the demand for discovery and understanding to ever greater heights.

In-store shopper experiences are going to become even more central to communicating the sector’s innovations and crucial for ensuring shoppers can navigate their way through any potential confusion.

It bodes well that shoppers already recognise the value of digital interactions for experience, exploration and education. It’s now up to us all in beauty to get the content right and deliver the relevant interactions beauty shoppers want, on their terms.”

Further highlights from the survey reveal:

• A lack of education and access to expert advice in-store are also preventing shoppers from completing their shopping missions. Two-thirds (67%) of beauty shoppers are inspired when shopping in-store, yet more than one-third (39%) feel there is not enough guidance or education around products.

• Two-thirds (65%) consider expert advice important when making a purchase decision, yet one-third (35%) say they can never find a member of staff to help.

• Eight-in-ten (83%) expect digital screens to facilitate product exploration while in-store, up 10% on last year; seven-in-ten (72%) would scan a QR code and share personal data to obtain a product trial; and 75% would use digital screens to access customer reviews, up 6% on last year.

• AR experiences are valued, with almost half (49%) of shoppers citing the technology as important to access while shopping in-store, up 11% on last year; and eight-in-ten (79%) of shoppers find product lift and learn technology, which meets their high-touch need, appealing.

• 92% of beauty shoppers want the opportunity to test and try out new product in-store becoming committing to a purchase

• 85% of beauty shoppers believe digital tools that enable interactive experiences can help them better understand the product features and benefits

• Around half of beauty shoppers consider QR codes, digital screens and AR useful when making a purchase decision

• 58% of beauty shoppers arrive in-store with a shortlist of products and brands to check out

• For more than half (54%) of respondents, improved opportunities to trial and test products is the change they would most like to see

Notes to Editors

Outform is an award-winning global innovation agency. We transform the retail experience through our insight, technology, and creativity initiatives to shape the Future of Retail.

Working on our clients’ behalf, we design, engineer and prototype, create one-offs and mass produce, we manage logistics and implement in store, and we can make sense of the data that’s collected along the way. A full-service offering, with in-house manufacturing across three continents and the attention to detail to deliver excellence in-store.

As experts in the beauty retail environment, our approach drives product discovery and brand awareness, translating the innovation inherent in the beauty sector into multi-sensory and memorable experiences that stand out and ultimately drive productivity and sales.

We are innovators in customer decision process and provide additional shopper engagement metrics; our re-invention of in-store sampling via our PodDrop technology combines physical sampling with the digital world, allowing for future retargeting.

Our beauty brand work includes Estee Lauder, Tom Ford, r.e.m.beauty and DECIEM’s The Ordinary, deployed in dynamic and competitive retail environments including Harrods, Galeries Lafayette, Boots, Sephora and many more.

We have 1,300 people and global locations that include: London, Miami, Chicago, Shanghai, Tel Aviv, Shenzhen and Amsterdam.