<div>
  <p>
    Cosmetics sales in the US declined 22% YoY while skin care declined by 8% YoY in Q1 2020.
  </p>
  <p>
    Nevertheless, positive dynamics provide optimism for growth in the personalized beauty market:
  </p>
  <ul>
    <li>
      <p>
        <b>Shift to online sales:</b>
         In the US, during Q1 2020, online sales of beauty products increased by 24% YoY and accounted for 48% of total beauty sales. 
      </p>
    </li>
    <li>
      <p>
        <b>The skin care category: </b>
        Demand spiked for personalized products
        <b>.</b>
      </p>
      <ul>
        <li>
          <p>
            Ipsy’s new customers grew by around 60% month-over-month (MoM) between mid-March and the end of July 2020. Sales also more than tripled over that period compared to Ipsy’s sales from January to mid-March 2020.
          </p>
        </li>
        <li>
          <p>
            Proven Skincare’s sales grew by around 62% month over month in April 2020.
          </p>
        </li>
        <li>
          <p>
            Atolla increased its monthly revenue by 5x during the first six months of 2020.
          </p>
        </li>
        <li>
          <p>
            Hairstory’s revenue increased by 85% YoY in 2020.
          </p>
        </li>
      </ul>
    </li>
    <li>
      <p>
        <b>Accelerated pace of innovation:</b>
         Constraints on in-store visits prompted beauty brands to expand or introduce virtual try-on technology.
      </p>
      <ul>
        <li>
          <p>
            Consumer engagement for MAC’s try-on tools increased 3x during the 8 week period ending April 26. 
          </p>
        </li>
        <li>
          <p>
            Ulta Beauty’s virtual try-on app saw engagement increase by 7x as of September 2020.
          </p>
        </li>
      </ul>
    </li>
  </ul>
  <p>
  </p>
</div>


COVID19-IMPACT

<h3>Most startups operate online with limited physical presence; accuracy of the matching algorithm is a key success factor</h3><p>Unlike the incumbents, the majority of personalized beauty startups operate online and do not operate a physical store. The products are sold either on a one—time purchase basis or on a subscription basis. The most used subscription model is replenishment subscriptions which is mainly used by skin care, hair care, and fragrance companies. The product is replenished at pre—defined regular intervals and the subscription fee is typically discounted from the second purchase onwards.</p><p>The accuracy of a company’s matching algorithm is equally important as the product quality, which also sets them apart from competitors. Success will depend on the depth and breadth of the database of customer records available and how well this is analyzed to generate useful insights. Most of the disruptors have developed proprietary algorithms and companies such as Hawthorne and Lillycover claim to have been able to achieve accuracy levels of over 97%.</p><p>Companies such as Function of Beauty and Hawthorne operate in both the custom skin and custom haircare segments, but the majority of the startups covered in this hub specialize in just one segment.</p>

<p>Incumbents initially penetrated the market by providing personalized recommendations of their own products as an add-on service, but are now moving towards more high-tech personalization models such as developing custom products and do-it-yourself (DIY) devices. Nearly half of the disruptors offer tailor made products with the majority of them being in the early or growth stages. DIY products is an emerging segment, however still at a nascent stage of development with most of the startups at seed level.</p>

<div>
  <p>
    Taiwan-based Perfect Corp provides business-to-business (B2B) technology solutions for the beauty industry using artificial intelligence (AI), machine learning, augmented reality (AR), and facial recognition technologies. The company’s “YouCam” solution involves skin analysis, virtual try-ons and shade-finder functions which are available online as well as in-store. Perfect Corp has also introduced several supplementary products to YouCam, such as “YouCam Video” (introduced in January 2021) built on its patented AR based “AgileFace” tracking technology that allows users to edit videos by (virtually) applying makeup, and “YouCam Tutorial” (introduced in September 2021), a software-as-a-service (SaaS) tool that assists beauty brands and makeup artists carry out virtual makeup tutorials for customers. 
    YouCam technology is used by major beauty brands such as L’Oreal, Lancome, Decorté, and Neutrogena as well as natural beauty brands such as 100% Pure Cosmetics. The company’s product portfolio also includes a contactless virtual try-on feature, which was introduced in response to increasing demand for such solutions due to the Covid-19 pandemic. This solution uses voice recognition and gesture control to allow the customer to navigate using voice commands.
  </p>
  <p>
    Further, in January 2021, the company raised USD 50 million in series C funding led by Goldman Sachs which the company expects to utilize to drive global expansion and to improve its beauty AI technology. As of September 2021, the app has been downloaded over 900 million times globally. 
  </p>
  <p>
  </p>
</div>


Perfect Corp

<div>
  <p>
    Nutrafol provides solutions for hair thinning and hair loss with personalized recommendations based on an online quiz. The quiz targets the areas of metabolism, stress, nutrition, hormones, and the environment. Based on the quiz results, a core solution (capsules to be taken on a daily basis) and one or two topical boosters are recommended using a proprietary algorithm. The products are provided as a monthly plan for USD 89 which also consists of 1) one-on-one consultations with a naturopathic doctor and referrals to local MDs if required, and 2) a free hair mineral analysis (based on a lab test) every six months. 
  </p>
  <p>
  </p>
</div>


Nutrafol

<div>
  <p>
    Adigica Health’s brand BioClarity recommends a skincare routine of its own products through an online quiz. The routine consists of a cleanser, exfoliant, and a gel. The company has obtained a patent for its plant-based non-toxic ingredient technology. The products can also be purchased separately online. According to the company, its core customers are women aged 16 to 29. The products are priced at a range of USD 10-30 and the company has increased its revenue by over 3.5x YoY since 2018. In May 2019, BioClarity raised USD 13 million in a round led by prolog ventures, which has provided USD 24.6 million in combined total funding for both Adigica and BioClairty.
  </p>
</div>


Adigica Health

<div>
  <p>
    Hairstory provides a personalized hair care routine using its own products based on an online quiz. The company’s product called “New Wash” combines a shampoo and conditioner. For the personalized routine, a variation of New Wash is recommended along with other hair products depending on the condition of the hair. The recommended kit can be bought as a one-off purchase or on a subscription basis. 
  </p>
  <p>
    The company also operates through a network of hairdressing professionals on a commission basis. As of October 2019, the company had a network of over 1,000 hairdressers which it expects to increase to around 5,000 in the medium term and 10,000 in the long term. As of October 2019, Hairstory had a review database of around 250,000 customers which the company uses to support new clients. Hairstory products are priced from USD 34-40 per month, which is relatively higher than its closest competitor Gemmist. On a subscription basis, refillable containers and shipping will be provided for free. The company ships within the US, Canada, the UK, and the EU.
  </p>
  <p>
  </p>
</div>


Hairstory

Own product recommendations

Companies that recommend beauty products from their own product range to match individual customer attributes.

<div>
  <p>
    NakedPoppy uses a patent-pending algorithm to analyze customer data obtained through an online quiz to recommend beauty products from selected “clean beauty” brands including NakedPoppy’s own line of products. NakedPoppy vets every product for safety and quality and as of December 2020, allowed 950 ingredients to be recommended. NakedPoppy’s website was officially launched in July 2019.
  </p>
  <p>
  </p>
</div>


NakedPoppy

<div>
  <p>
    Gemmist provides personalized recommendations for hair care products based on an online quiz. Gemmist’s proprietary algorithm analyzes the answers to an online quiz to recommend a shampoo, conditioner, and a scalp balancing bar from the company’s available formulas. The shampoo and conditioner kit are also available for a one-time purchase of USD 45 or on subscription basis at USD 36 per month, which is lower than its closest competitor Hairstory. The company raised USD 3.5 million in April 2020, bringing its total funding to USD 4.2 million. 
  </p>
</div>


Gemmist

<div>
  <p>
    Singapore-based Yours recommends personalized skincare products from its own product portfolio based on an online quiz and an optional selfie. The proprietary algorithm based on machine learning and computer vision technology analyzes the data to identify the ingredients that will go into a customer’s products. Yours products are made from ingredients sourced from Switzerland. The product pricing ranges from USD 20-35 and can be purchased as a one-off or on a subscription basis. As of December 2020, the company shipped to the US, Canada, the UK, Australia, New Zealand, and several other countries.
  </p>
  <p>
  </p>
</div>


Yours

<div>
  <p>
    Founded in Finland, Revieve provides virtual try-on and skin analysis technologies based on artificial intelligence (AI) and augmented reality (AR) technology to assist beauty brands in personalizing their offerings. The company allows its clients to offer virtual try-ons to its users on their own websites, mobile phones, and physical locations. The company opened its US headquarters in December 2020 with 70 beauty brand partnerships already established including well-known brands such as Ulta Beauty. In July 2019, Revieve raised EUR 1.3 million (USD 1.5 million) in Series A funding to expand into other geographical markets.
  </p>
</div>


Revieve

<div>
  <p>
    Elsi beauty recommends its own products to customers using an online quiz. The quiz will collect information on customer skin profile, environment, and hormonal changes to recommend a package of Elsi Beauty products that includes a moisturizer and a cleanser. In October 2019, the company raised USD 1 million in seed funding from Sekhmet Ventures who will also provide the company with strategic counselling. 
  </p>
  <p>
  </p>
</div>


Elsi Beauty

<div>
  <p>
    Voir, which targets the business-to-business (B2B) market, offers virtual make-up technologies by combining augmented reality (AR), facial recognition, computer vision, machine learning, neural networks, proprietary 3D rendering, and proprietary anatomic face tracking. As of April 2019, the Voir app has been downloaded by over 2.8 million users globally.
  </p>
  <p>
  </p>
</div>


Voir

<div>
  <p>
    Based in South Korea, Lillycover is a custom skincare solutions provider and manufacturer of  DIY app-based skin-diagnosis devices. The “Muilli” devices are embedded with cameras to analyze pore sizes, wrinkles, sensitivity, and oil-moisture balance which is then processed using an algorithm to determine the current state of the skin. The device is also embedded with sensors to measure conditions such as ultraviolet (UV) levels, temperature, and pH levels. After identifying skin conditions, the app will recommend face masks and face gels. The company had collected over 100,000 skin records as of October 2019 for its database from people in the US, Korea, and Vietnam to develop the algorithm which the company claims is 98.5% accurate. The device is also embedded with plasma disinfection, massage, and sterilization features.
  </p>
  <p>
    In August 2021, the company raised USD 4 million in Series A funding led by POSCO Capital, TBT Partners, IBK, and KITE Entrepreneurship Foundation. The company expects to use new funds to expand its product offerings in the skincare range. It will introduce new product categories in hair care this fall and color cosmetics by the end of this year. The funds will also be used to develop a smart manufacturing system for customized products in small quantities. The company has offices in Korea and the US and plans to tap into new Asian markets including China, Japan, and Vietnam as well as Europe with the assistance of German multinational Beiersdorf.
  </p>
</div>


Lillycover

<div>
  <p>
    SkinIQ uses a mobile app based on imaging technology to analyze skin and recommend products that are suitable for each individual depending on their acne and other skin conditions. The customer is required to download the SkinIQ iOS app “Clara”, upload a selfie, and answer a few questions in the app to receive a skin condition report and product and routine recommendations. As of December 2020, the app was in beta testing mode.
  </p>
  <p>
  </p>
</div>


SkinIQ

<div>
  <p>
    Amareta produces ready-made skin care products that it recommends to customers based on an online quiz.  Amareta identifies hormones as a significant factor contributing to skin changes and considers conditions relating to a women’s menstrual cycle when formulating a personalized skin care regimen. Amareta also develops products targeting pregnant and breastfeeding women. The products do not include any hormone-disrupting chemicals or synthetic ingredients. The company claims that around 60% of its customers make a repeat purchase. 
  </p>
</div>


Amareta

<div>
  <p>
    Ipsy provides a subscription-based personalized product bundle. Customers answer an online quiz and the company uses proprietary machine learning technology named “IPSY MATCH” to match products from selected brands with customer attributes such as skin tone, hair color, preferred brands, etc. The product bundle known as “Glam Bag” is available in three packages with prices ranging from USD 12-170. Customers are asked to pick three products out of 12 recommendations allowing the company to gain insights on customer preferences which are in turn used to improve its recommendation engine. Ipsy ships to the US and Canada with over 3 million active members as of November 2020. In 2015, the company raised USD 100 million led by TPG Growth and Sherpa Capital.
  </p>
</div>


Ipsy

<div>
  <p>
    Heyday is a provider of personalized in-store facials and online shopping recommendations. For in-store visits, a self-reporting quiz and discussion with an on-site aesthetician are used to identify the type of facial that is required. The aesthetician also uses a tool to analyze the skin type of the customer. After the facial, the customer receives an email specifying what skincare routine the customer should follow over the next 30 days along with product recommendations. The customers can also answer a quiz on the website that will recommend products of selected brands that are listed on the website. Heyday operates through franchise partners, with presence in ten locations in New York, Philadelphia, and Los Angeles (three of which are temporarily closed at present due to the Covid-19 pandemic as of February 2021). These store closures resulted in a layoff of staff in March 2020. Subsequently, the company upgraded its online presence by adding one-on-one virtual skincare consultations. The company’s revenue was reported at USD 20 million during the 12-month period up to March 2020. 
    
    In February 2021, Heyday raised 20 million in Series B funding led by Level 5 Capital Partners with participation from several existing investors, bringing the total funding to USD 33.2 million. The funds will be used to accelerate growth by expanding in-store franchise operations and improving the digital experience through innovation. The company aims to expand its physical footprint to “hundreds of stores” within the next five years.
  </p>
</div>


Heyday

<div>
  <p>
    EpigenCare is a personalized skincare platform that recommends products based on skin attributes through DNA analysis. The customer is given an at-home kit, “Skintelli”, to non-invasively collect samples in order to test DNA methylation levels. The company claims to have identified a proprietary panel of genes that strongly correlate with changes to major skin conditions such as aging, moisture, and elasticity. The company has also developed an algorithm to screen product ingredients to determine the best products in the market  for each individual to reverse or slow-down the negative effect of genetics. The company’s database of products includes brands across a wide range of prices. The company launched a beta version in February 2019. The company is pre-launch as of December 2020.
  </p>
  <p>
  </p>
</div>


EpigenCare

<div>
  <p>
    HelloAva recommends skin and hair care products from selected brands based on information collected through an online quiz and an optional selfie. The information is analyzed using a proprietary algorithm to identify suitable products which are then passed on to a licensed aesthetician for further validation. However, unlike other companies, HelloAva charges USD 10 at the beginning of the process which can be applied as a credit during purchase. The company also launched a video consultation platform in March 2020 to provide additional human-centric services to customers as a result of increased online activity during the Covid-19 pandemic. The company has also partnered with several well-known and independent brands that have gone through a vetting process. As of June 2019, the company has provided over 70,000 consultations since its launch.
  </p>
  <p>
    Additionally, in June 2019, Unilever partnered with HelloAva to create a personalization tool in Unilever’s “AllThingsHair” website to recommend personalized hair care routines to its customers. 
  </p>
  <p>
  </p>
</div>


HelloAva

<div>
  <p>
    FaceCake uses augmented reality (AR) and AI-based proprietary technology to provide virtual try-on facilities for a range of markets including beauty products, clothing, jewelry etc. The company had developed several products targeting different markets, for example, “Swivel Close-Up” is an app for online and in-store cosmetics virtual try-on, “ShadeScout” is an app for matching makeup and doing virtual try-ons using a mobile device, and “CAKE”, a platform that works with a webcam of any device. FaceCake offers over 1 billion types of products from a variety of brands on its platform that can be tried on and purchased from the app. 
  </p>
</div>


FaceCake Marketing Technologies

Other brand recommendations

Companies that recommend beauty products of chosen/partnered brands that are already available in the market to match individual customer attributes.

<div>
  <p>
    UK-based My Beauty Matches (MBM) uses online quizzes, machine learning, and artificial intelligence (AI) to offer personalized recommendations for third-party beauty products including skincare, hair care, makeup, and fragrances.  The company boasted a database of over 400,000 products from over 3,000 brands as of July 2020. MBM also provides a price comparison tool to its users. 
  </p>
  <p>
  </p>
</div>


My Beauty Matches

<div>
  <p>
    France-based Jolimoi matches individual customer attributes with select brands using an artificial intelligence (AI) based algorithm. The brands are screened for quality with over 40 registered on the platform as of November 2020. The company currently operates in France and Belgium with plans to expand globally.
  </p>
</div>


Jolimoi

<div>
  <p>
    The Beauty Marketplace uses machine learning and image processing technology to recommend products from select brands. Customers are asked to upload a photo to identify up to 53 beauty characteristics that are matched with products using an algorithm. The company only focuses on indie beauty brands that can register with the company.
  </p>
  <p>
  </p>
</div>


The Beauty Marketplace

<div>
  <p>
    Plum Perfect is an app that scans a selfie to recommend make-up products from selected in-market brands to match skin tone. Once a selfie is uploaded, the app analyzes facial color and extracts a unique color signature for lips, eyes, face, and hair using patented technology. This information is then used to match with a database of products using a machine learning algorithm. 
  </p>
  <p>
  </p>
</div>


Plum Perfect

<div>
  <p>
    AlgoFace is a provider of face-related technologies such as virtual makeup try-on, emotion detection, face tracking, etc. using artificial intelligence (AI), computer vision, and augmented reality (AR) technologies. The company’s “MAKEUP AR-TIST” product can be used in makeup apps, smart mirrors, and e-commerce websites to offer virtual try-on capabilities for various cosmetic products. In July 2021, the company received a patent for neural network based technology that is capable of searching face images on live video without data-labeling. 
  </p>
</div>


AlgoFace

<div>
  <p>
    Function of Beauty is a developer of custom hair care, skincare, and body care products. The company’s initial focus was on hair care before expanding into body care in July 2020, and skin care in October 2020. Function of Beauty formulates custom products based on an online quiz using an algorithm capable of offering 12 billion custom combinations developed by the company’s founders—a group of MIT engineers and data scientists including Zahir Dossa and Joshua Maciejewski. In September 2021, industry veteran Alexandra Papazian was appointed as chief executive officer (CEO) to replace Zahir Dossa, who will remain on the board as executive chairman.
  </p>
  <p>
    Designing, development, manufacturing, and packaging of Function of Beauty products are carried out in-house with occasional consultant feedback. Most company processes are automated and the company uses a robotic system to dispense each order, with around 20-50 ingredients per bottle. As of December 2020, a 30-day supply of the company’s products was priced between USD 20-50  with 17% discounts available for bundles. As of November 2020, the company was shipping to over 40 countries including the US, the UK, Canada, EU countries, and several Asian countries. In December 2020, the company raised USD 150 million in Series B funding led by L Catterton. The funds are expected to be used to scale-up operations.
  </p>
  <p>
    In August 2021, Function of Beauty acquired Atolla, a custom skincare product developer, marking the company’s first acquisition. Function of Beauty's proprietary formulations will be combined with Atolla's patented skincare technology to offer advanced custom skincare products, expected to launch in Q1 2022. 
  </p>
  <p>
  </p>
</div>


Function of Beauty

<div>
  <p>
    Hawthorne is a developer of custom fragrance, body care/grooming, hair care, and skincare products for men. The company launched with fragrances, introduced body care products in 2018, hair care products in 2019, and in January 2020 introduced custom skincare products. An online quiz collects information such as daily routine, lifestyle, taste, and familiarity with grooming products. That information is then analyzed using a proprietary data processing algorithm. The company has priced its personalized fragrance at USD 50 and skin and hair care products are priced in the range of USD 17-23. Given limited options in the market for products targeting men, Hawthorne skin and hair care products are reasonably priced. 
  </p>
  <p>
    Hawthorne says that it has been able to improve its recommendation algorithm accuracy to 97%, up from 85% in 2016. The company has reported annual topline growth of 350% each year leading up to January 2020. The company ships to the US, Hawaii, and Alaska. 
  </p>
  <p>
  </p>
</div>


Hawthorne

<div>
  <p>
    Proven Skincare develops personalized products based on a custom formula that incorporates 45 factors about the user including environment, lifestyle, and skin concerns. Based on the identified skin genome profile, three multifunctional products are developed, i.e. a multifunctional cleanser/toner, a moisturizer, and a night cream/serum. Proven claims that its proprietary “Skin Genomic Database” consists of over 20 million customer testimonials, 8 million online reviews, and data from over 4,000 scientific papers analyzed with machine learning and natural-language processing to identify the most suitable clean ingredients for each customer. 
  </p>
  <p>
    As of December 2020, the company’s products were priced between USD 35-95. The company offers discounts on bundled purchases and subscriptions; for example, a three-product kit which would cost USD 185 if bought individually is offered at a discount of 20% when purchased as a package, and a further discount of around 18% will be applied if the customer signs up for an auto-refill membership.
  </p>
  <p>
    Proven Skincare was launched in October 2019 and was reported to be on track to achieve USD 3 million worth of sales and achieve profitability in its first year of operation. The company has raised USD 6 million in funding. 
  </p>
  <p>
  </p>
</div>


Proven Skincare

<div>
  <p>
    Atolla provides a customized skin serum based on the customer’s skin profile identified through an online quiz. The profile is analyzed and matched with suitable ingredients using Atolla’s patented algorithm to create the serum. After a few weeks of use, the customer uses an at-home testing kit to measure and share skin conditions in a mobile app. This feedback is then used to alter the skin profile and the serum formula if required. Atolla’s algorithm is a machine learning-based data predictive model that uses past data of all users’ skin conditions over time to match and predict the most suitable serum for each individual. The algorithm’s predictive capability is improved over time with feedback and reviews from users. As of December 2020, the serum was priced at USD 39 per month on a subscription basis which includes the at-home testing kit and one-on-one consultation support.
  </p>
  <p>
    The brand was launched in August 2019 and in July 2020, the company raised USD 2.5 million in seed funding bringing its total funding to USD 4 million with Lyra growth partners as the lead investor. As of November 2020, Atolla served over 5,000 customers and was reported to be on track to achieve USD 2 million in sales in 2020. In August 2021, the company was acquired by Function of Beauty, a developer of custom beauty products.
  </p>
  <p>
  </p>
</div>


Atolla

<div>
  <p>
    Founded in Singapore, Skin Inc develops custom skin serums based on information gathered through an online quiz and a skin optimization device. The custom formula is formed using Skin Inc’s proprietary diagnostic tool and algorithm that incorporates environmental and lifestyle factors to determine the custom serum formula. Skin Inc’s encapsulation method is also based on proprietary technology from Japan. Ingredients are encapsulated in natural seaweed to prevent oxidization. The skin optimizer, which was introduced in 2015, uses 3 megahertz low-frequency stimulation and LED chromotherapy to assist in regenerating skin cells. As of November 2020, Skin Inc’s products were available in over 78 cities in the US, Europe, and Asia, with over 200 retail distribution points such as the Skin Inc. concept stores, Sephora and Nordstrom outlets, and selected online partners. 
  </p>
</div>


Skin Inc

<div>
  <p>
    Foreo is a Swedish startup that offers a range of at-home skin care devices called “Luna” along with other products such as face masks, cleansers, etc. The company’s personalized offering is the “Luna fofo” device that works as a two-in-one facial massager and cleansing. The device analyzes skin conditions using advanced sensors  as well as the surrounding environment to develop a personalized routine. The routine provides custom intensity and duration and is created in a mobile app synced to the Luna fofo device. The device, priced at USD 89, is not rechargeable and can be used up to 400 times. The company achieved USD 90 million in sales in 2019. 
  </p>
</div>


Foreo

Custom products — skin care

Companies that develop a custom/tailor made product unique to each individual. Start-ups either specialize in one type such as skincare, hair care, make-up or fragrances or offer multiple types.

<div>
  <p>
    Pure Culture Beauty, founded by the former chief chemist of MAC cosmetics, offers custom skin care products based on an online quiz and an at-home testing kit. When the customer purchases the customized starter kit online, the company will send the at-home testing kit which identifies conditions such as pH balance, oil and sebum levels, and the microbiome analysis, which the customer has to feed into their Pure Culture account. The customer is also required to answer a few questions on the website about skin goals, lifestyle, and their environment. After analyzing the collected data, Pure Culture formulates a custom formula to match the skin conditions of each individual and ships out a custom kit which includes a cleanser, serum, and a moisturizer. The serum can be bought separately as well. The company has partnered with DNA Genotek to supply the microbiome test kits and Diversigen to provide the microbiome analysis services. As of December 2020, the company was addressing common skin needs such as aging, and dark spots, while solutions for specific conditions such as acne-prone skin are yet to be developed. In August 2021, the company launched its products on “thebay.com,” the online platform by Hudson’s Bay Marketplace, marking the first time its products are listed on a retail platform. The company is also planning to enter Hudson’s Bay retail spaces through pop-up stores later in 2021.
  </p>
</div>


Pure Culture Beauty

<div>
  <p>
    Geologie is a provider of custom skincare products for men. The regimen includes a face wash, day cream, night cream, and eye cream which is priced at USD 148  for a 90-day supply. Geologie’s proprietary algorithm matches each individual skin condition with one of nearly 40 pre-identified biochemical profiles. Ingredients of the 40 profiles are tailored based on a custom formulation suitable for each skin condition. As of October 2020, Geologie had over 2,000 customer reviews. 
  </p>
  <p>
  </p>
</div>


Geologie

<div>
  <p>
    Based in Germany, AVE + EDAM is a provider of custom skin care products. The company provides an online test that identifies personal skin conditions as well as environmental factors such as water hardness, humidity, pollution, and ultraviolet (UV) levels. The collected information is analyzed through an algorithm and matched with ingredients for individual user needs. The company’s products are priced at USD 40 and up.
  </p>
  <p>
  </p>
</div>


AVE + EDAM

<div>
  <p>
    Founded by two MIT data scientists, Y’OUR uses a proprietary algorithm to analyze customer responses to an online quiz to formulate custom skin care products. The quiz takes into consideration the age, skin type, environment, stress levels, etc. After analyzing the variables, an artificial intelligence (AI) based algorithm formulates a skin care routine for each individual depending on the past experience of people with similar conditions. The recommended skin care routine consists of a cleanser, a day cream, a night cream, and a serum. 
  </p>
</div>


Y’OUR

<div>
  <p>
    Sepai is a developer of skin care products sold under the brand names, Sepai, LAB Clinical, Gendecode, and Apoem. Under the Gendecode brand, the company provides custom skin care products based on a DNA analysis. The customer is required to  give a sample of buccal DNA in person which will be analyzed using genomic sequencing. The company’s professionals also collect the customer’s clinical history relating to skin conditions and record the customer’s lifestyle as well as environmental variables. The customer receives a detailed report following the analysis along with customized products such as serums, moisturizers, and cleansers. The products are made by combining one of 45 base options and two boosters selected from a range of 65 options.
  </p>
</div>


Sepai

<div>
  <p>
    Skin Dossier is a provider of personalized skin care and hair care products that has yet to launch. The company’s founder is a beauty industry veteran who also co-founded an artificial intelligence (AI) and DNA based personalized beauty products company. 
  </p>
  <p>
  </p>
</div>


Skin Dossier

<div>
  <p>
    The Buff is a provider of custom skincare serums based on an online quiz. The products are a blend of oils chosen from a range of different natural oils to match individual skin conditions. The product was first made as a solution for the founder’s own skin issues which later became commercial. The company also sells standard (not customized) serums for body, face, and hair.
  </p>
</div>


The Buff

<div>
  <p>
    Skinshift provides customized skincare products based on the results of DNA analysis. The company analyzes the results of customers’ at-home DNA test kits to provide detailed DNA analysis reports along with product recommendations. All Skinshift customers are provided with a kit including a cleanser, toner, and moisturizer.  Serum and supplements are personalized based on the DNA results. 
  </p>
  <p>
  </p>
</div>


Skinshift

<div>
  <p>
    Prose develops custom hair care products and develops custom hair care routines based on responses to an online quiz about hair type, current hair care habits, diet, stress level, and physical activity. Factors such as ultraviolet (UV) exposure, pollution, humidity, and wind are also considered. The customer is also given the option to specify if the product has to be vegan, gluten-free, etc. The collected information is processed through Prose’s proprietary algorithm to create individualized products. Prose uses a semi-automated approach to manufacturing with production done by a chemist (who is an employee of the company) with automated mixing and packaging. Six to eight week supplies of Prose shampoo and conditioner are priced at USD 25 each, more affordable than competitors such as Function of Beauty and Strands. In April 2021, the company introduced “Root Source,” a hair supplement to treat environmental causes of hair loss. The product package, which is priced at USD 44 for subscribers, consists of two pills, a universal soft gel, and a customized capsule. The new product resulted from insights derived from information previously collected through Prose’s online quiz, which revealed that around 85% of the brand’s customers experience hair loss. The new supplement’s clinical trials have seen around 93% of users experiencing improved hair growth after taking the supplement for 90 days.
  </p>
  <p>
    The company claims to have completed over one million consultations in the 11 months leading up to November 2019. In November 2018, Prose raised USD 18 million in Series B funding to bring its total funding to USD 25 million. The funds were used to expand the in-house data science team and to introduce a new proprietary manufacturing system. Prose aims to achieve USD 100 million in revenue in 2021.
  </p>
  <p>
  </p>
</div>


Prose

<div>
  <p>
    Strands collects hair samples from customers through an at-home testing kit to offer personalized shampoo and conditioner based on individual hair conditions. Customers receive an at-home testing kit which includes a scalp testing strip, samples of fragrances to choose from, and a brush to collect hair samples. The collected samples are mailed back to the Strands Lab and analyzed for cuticle condition, hair texture, surface protein levels, and scalp sebum levels. The analysis is conducted using advanced microscopic imaging and molecular analysis and matched by their proprietary algorithm to identify the optimal ingredients to formulate a customized shampoo and conditioner kit. The products are then shipped to the customer along with a detailed hair analysis report. The products can be refilled on a monthly basis at USD 30 per month per product, which is at a premium compared to competitors such as Prose. The product was launched in April 2020 and as of November 2020, the product had received over 480 reviews on the website.
  </p>
  <p>
  </p>
</div>


Strands

<div>
  <p>
    eSalon is a provider of made-to-order at-home hair color kits created following an online customer quiz. The questionnaire collects information such as hair color history, eye color, and maintenance preferences. The information is used to develop a custom hair color which is shipped usually within 3-5 days. The hair color is accompanied by accessories such as a brush, gloves, shampoo, conditioner, and personalized instructions along with access to a virtual personal colorist. The colorist uses patented software to create a unique color formula ID that is sent to a proprietary “Polly Chrome” mixing machine which provides customer details to the color dispenser. A scanner attached to the dispenser reads the ID and dispenses the precise amounts of pigments and toner. According to the company, “Polly Chrome'' is capable of dispensing over 2.2 octooctogintillion (10267) pigment variations. The price of custom hair color is USD 27.50 for one-off purchases and USD 22 (along with a discount of 20% for future orders) for a monthly subscription. 
  </p>
  <p>
    In June 2020, the company launched its sub-brand “Colorsmith” targeting men and in January 2021, it introduced “Aura,” offering semi-permanent color pigments. The brand Colorsmith was introduced to the UK market in April 2021 followed by aIn expansion across Europe in June 2021. n February 2021, the company introduced its demi-permanent custom hair color products to the European market. As of February 2021, eSalon has created more than 251,000 color combinations and shipped more than 9.7 million orders to more than 20 countries including the US, Canada, the UK, Germany, Italy, and France.
  </p>
  <p>
  </p>
</div>


eSalon

Custom products — hair care

Custom products — makeup

<div>
  <p>
    Preemadonna is the developer of “Nailbot”, a do-it-yourself (DIY) device that prints personalized nail art in as little as five seconds. The device, launched in 2015, is connected to the Nailbot mobile app through which the customer can select what to print on the nails including photos, pictures designed in the app, or pictures exported from other design programs. The prints will last for three-five days if sealed with a top coat of nail polish. The Nailbot starter kit, available for USD 199.99, includes the printer, nail care consumables, and the Nailbot mobile app. The starter cartridge could last for around 2,000-2,500 nail prints. The number of prints can be tracked from the Nailbot app print counter.
  </p>
  <p>
    In January 2021, the company raised USD 5.6 million in Seed funding bringing the company’s total funding to USD 9.2 million. The round was led by Halogen Ventures with participation from Version One Ventures, Amazon Alexa Fund, Shrug Capital, Cleo Capital, and several other institutional and individual investors.
  </p>
  <p>
  </p>
</div>


Preemadonna

<div>
  <p>
    Finding Ferdinand offers customized lipstick and makeup palettes. To make a custom lipstick color, the website offers a virtual color palette of 15 base colors from which the customer can select and blend using a color adjustment slider. The customized palette can be made by choosing a highlighter, a blush, a bronzer, and five eye shadow colors. The company’s website has been developed by Finding Ferdinand founder Nhu Le using her data science background and professional experience working as a program manager at major brands including Sephora and Urban Decay.
  </p>
</div>


Finding Ferdinand

<div>
  <p>
    Based in Sweden, Ellure offers custom-color lipstick. Customers can virtually try-on over 10,000 shades of matte liquid lipstick using a model face available online. The products are made from vegan and cruelty-free ingredients. The company uses a color algorithm that is trained to correctly print digital colors. Ellure products are manufactured on-demand using 3D printing technology. The product is yet to be commercially launched.
  </p>
  <p>
  </p>
</div>


Ellure

<div>
  <p>
    Pinrose offers custom fragrances based on an online quiz. The sensory-based quiz is different from other companies as the customer is presented with 12 sets of two pictures and instructed to pick their preference between them. The company uses the psychology of olfaction to identify fragrance preferences of users that are associated with each picture that is selected. The results are matched using a proprietary algorithm to identify a set of three scents that are offered as perfume petals (a small piece of paper containing the scent). The USD 25 pack includes 20 petals from one selected scent and five petals each from the other two selected scents. A sample kit can also be purchased for the same price which includes 30 petals from 30 scents. As of July 2020, the company had served over 300,000 customers.
  </p>
  <p>
  </p>
</div>


Pinrose

Custom products — fragrance

<div>
  <p>
    Fragrance by Me develops custom fragrances based on an online quiz. Customers are asked to answer a few questions about perfume preferences and then the company uses its proprietary technology to formulate a custom fragrance which is shipped within 20 business days. The product is priced at USD 99 which is aligned to the market average. Fragrance by Me also allows the customer to choose their perfume bottle and to print their name on the bottle. 
  </p>
  <p>
  </p>
</div>


Fragrance by Me

<div>
  <p>
    Waft provides personalized fragrances based on an online questionnaire that collects information on customer preferences for fragrances and information about customer use cases (work, play, etc.) which is analyzed to identify the ingredients and tone of the fragrance. The customer can also pick three base fragrances to help Waft start building a custom scent. The product is priced at USD 95, aligned to the market average.
  </p>
  <p>
  </p>
</div>


Waft

<div>
  <p>
    Based in France, Romy offers a DIY portable device known as “HyLab'' that formulates custom skincare products using input from the mobile app and pre-purchased ingredients. Launched in 2019, the Romy was developed in collaboration with dermatologists to help recommend ingredients by identifying and analyzing environment and lifestyle conditions such as stress, temperature, jet lag, etc. The HyLab device was developed with a proprietary technology called the “Fresh Percussion System'' that blends a base with active ingredient capsules into a face cream. HyLab also uses near field communication (NFC) technology, i.e. the HyLab device is equipped with a radio frequency identification (RFID) antenna while the bottles are equipped with an RFID tag to trace product availability by updating the filling level after each use. The company has obtained 28 patents for its technology as of December 2020.
  </p>
  <p>
  </p>
</div>


Romy

<div>
  <p>
    Mink is the creator of a device that enables the customer to 3D-print makeup at home by uploading a selfie. Mink’s system consists of four components: a portable printer, an app, proprietary makeup sheets, and a tri-color cartridge. Mink claims that its printer can produce 16.7 million colors and takes just 15 seconds to print. The product was initially introduced in 2014 and officially launched for pre-order in June 2019 at a price of USD 295, a 25% discount from its original price. The product has yet to ship by the end of 2020.
  </p>
  <p>
  </p>
</div>


Mink

Do-it-yourself devices

Companies that develop portable devices that provide personalized beauty routines, and/or allows the customer to make their own combination of beauty products.

<div>
  <p>
    Scotland-based Cutitronics is a business-to-business (B2B) technology provider offering a skin-analyzing device and an app-connected product dispenser. The company targets beauty brands seeking to offer custom beauty products to its customers. The skin analyzing device measures skin conditions such as hydration as well as environmental conditions. The dispensing machine uses patented technology to dispense product and track usage and refill levels. The product was launched in 2020  with an initial target market of  beauty brands in France and Spain. The company plans to expand in Europe and beyond.
  </p>
</div>


Cutitronics

<div>
  <p>
    HiMirror is a digital mirror that provides personalized recommendations for beauty care routines by analyzing the user’s skin through a photo taken from the camera embedded in the mirror. The device can also keep track of a customer’s beauty products usage to recommend routines and keep track of product availability. The device is operated with an app as well as through facial recognition and gesture recognition technology. HiMirror’s recommendations are provided by analyzing data collected anonymously through the company’s cloud-based big data system which collects information on how the products have fared for people with similar skin conditions. The mirror can also be combined with HiSkin, a portable handheld device embedded with sensors that can analyze hydration and pigmentation levels.  
  </p>
  <p>
  </p>
</div>


HiMirror

<div>
  <p>
    France-based CareOS provides a “Poseidon” smart mirror that provides customers with beauty routine insights and allows experimentation using augmented reality (AR) technology, voice recognition, facial recognition, etc. The company focuses on direct-to-consumer sales, as well as the business-to-business (B2B) market targeting salons, wellness studios, medical providers, etc. The mirror is embedded with features such as virtual try-ons, personalized recommendations  based on skin analysis, and AR based tutorials for makeup and hairstyles. The product was yet to be launched as of December 2020, and the company has already partnered with several B2B companies including beauty brands, salons, spas, and retailers such as Coty, Romy, and e-Health Care. 
  </p>
</div>


CareOS

Disruptor Funding History

2014

2015

2016

2017

2018

2019

2020

2021

Delivering tailor-made beauty products to break through a crowded mass market.

Personalized Beauty Tech

<h3>Partnerships with tech startups help incumbents catch up</h3><p>Almost all incumbents in the personalized beauty space have teamed up with startups working on augmented reality (AR) and related technologies. Some, like L'oreal, Procter & Gamble, and Avon, have additionally developed proprietary technology in-house. And while still early, a few acquisitions have already taken place.</p><p>With the advantage of a retail footprint, many incumbents offer personalized experiences in-store as well as online. For example, L’oreal’s SkinCeuticals line offers a customizable face serum that is available in select retail locations. Other players such as Estee Lauder, MAC cosmetics, and Garnier also provide virtual try-on facilities in-store.</p>

<div>
  <p>
    Based in France, L’oreal is the world’s largest cosmetics manufacturer and retailer. The company provides a range of personalized products including makeup, haircare, and skincare using augmented reality (AR) technology and proprietary dispensing machines. In 2012, Loreal launched its “Technology Incubator” as a startup within its research and innovation division to develop new technologies for product personalization and customer  experience.
  </p>
  <p>
    Several new products have emerged from this incubator. For example, under the Color&Co brand, L’oreal sells a personalized at-home hair color kit for USD 20 (as of September 2020) that asks customers to answer online questions and conduct a 10 minute video conversation with a hair colorist. L’oreal’s brand, SkinCeuticals’ provides a “Custom D.O.S.E.” skin care serum that utilizes a patented skin diagnostic tool, only available in select physical stores, to evaluate the customer’s skin conditions and dispense a custom serum within 5 minutes following an in-person consultation. The company also provides virtual try-on facilities through its website, either over webcam or via photo upload, to preview multiple makeup products and hair colors. “Lancôme Le Teint Particulier”, another customized product under L’oreal, blends custom foundation using a color matching algorithm. This product is available in-store as well as on the website as virtual try-on. In 2018, L’oreal acquired ModiFace, a provider of AR and AI solutions for the beauty industry, to strengthen its AR virtual-try on offerings.
  </p>
  <p>
    One of L’oreal’s latest innovations in the personalized beauty space is “Perso”, a three-in-one at-home skincare and cosmetics product dispenser expected to launch in 2021. The Perso device is linked to a mobile app to analyze the user’s skin along with local environmental conditions such as temperature, ultraviolet (UV) index, humidity, etc. Based on the analysis, the device can dispense personalized skincare products including lip color and foundation. The artificial intelligence (AI) powered device also utilizes a patented motorized system. In July 2021, L’oreal applied for a patent on a system that analyzes protein biomarkers to make personalized formulations or recommend existing products. 
  </p>
  <p>
    L’oreal’s mass-market subsidiary Garnier also provides virtual hair color try-ons on its website powered by Modiface AR technology.
  </p>
</div>


L'oreal

<div>
  <p>
    France-based Sephora is one of the world’s largest retailers of beauty products; both its own and those made by other companies. Sephora offers personalized beauty products including makeup, skincare, haircare, fragrances, bath and body, and tools and brushes using augmented reality (AR) and skin analyzing devices. The company operates over 2,600 stores in 36 countries with over 500 stores in the Americas.
  </p>
  <p>
    In 2016, the company launched “Sephora virtual artist” in the Sephora mobile app to allow customers to virtually try-on lip color, eyelashes, and eyeshadows. The app uses “3D live view” and AR tech which were developed in partnership with ModiFace, a leading provider of AR and artificial intelligence (AI) solutions for the beauty industry that was acquired by L’oreal in 2018. The app also provides virtual tutorials using the customer’s own face. Sephora virtual artist is also available at in-store kiosks.
  </p>
  <p>
    Sephora’s “Color IQ” in-store device scans the customer’s skin to recommend relevant products. The technology was developed in partnership with the proprietary color capturing and measuring company Pantone.
  </p>
</div>


Sephora

<div>
  <p>
    Proctor and Gamble (P&G) is a multinational corporation that sells personal care, skin and hair care, home care, family care, baby care, and grooming products under various brands. The company uses machine learning and product dispensing technologies for product recommendation and customization.
  </p>
  <p>
    One of P&G’s beauty personalization tools is the “Olay Skin Advisor” an app-based artificial intelligence (AI) enabled skin analyzing product recommendation tool that takes advantage of graphical processing unit (GPI) manufacturer Nvidia’s deep learning platform.
  </p>
  <p>
    In September 2020, P&G launched “Opte”, a handheld device that scans the skin to identify age spots and apply a serum made in advance following customer input via an online quiz. The serum doubles as a foundation by camouflaging age spots instantly while reducing them over time. A camera in the device detects spots and analyzes them using a proprietary algorithm. Opte also includes a custom thermal inkjet printer and cartridge in the device prints droplets of serum in precise amounts in target areas. The company claims it uses 95% less makeup compared to a normal foundation. The device is available for purchase or as a subscription.
  </p>
</div>


Procter and Gamble

<div>
  <p>
    Johnson and Johnson is a multinational corporation that manufactures consumer goods and pharmaceutical products. The company’s skin-care focused brand, Neutrogena, debuted the “Neutrogena Skin360” app in 2018 which uses Perfect Corp’s artificial intelligence (AI) technology to analyze skin and recommend Neutrogena products. The technology uses over 10,000 historical data points to recommend personalized routines. Neutrogena is also planning to launch a “Neutrogena MaskiD” product that uses digital imaging, 3D face mapping, and 3D printing technologies to generate a 3D-printed face mask to fit the user’s face measurements and skin type.
  </p>
</div>


Johnson and Johnson

<div>
  <p>
    Ulta Beauty is a retailer of cosmetics, fragrances, skin care, hair care, bath and body products, and beauty tools; both its own and those made by other companies. The company provides virtual try-on facilities with personalized recommendations based on augmented reality (AR) technology and a skin quiz. The company launched its GLAMLab in 2016, for virtual try-ons via app or in-store. In 2018, the company acquired Uruguay-based AR company  GlamST and artificial intelligence (AI) company QM Scientific to strengthen its technology. In 2019, the company partnered with Perfect Corp to use its “Beauty 3.0” in Ulta Beauty’s product recommendations. The company also offers an AI based skincare virtual beauty advisor on the website that provides personalized recommendations based on a series of questions. In November 2020, Ulta Beauty partnered with the supermarket chain Target to roll-out 100 Ulta Beauty stalls in Target locations in 2021 with more expected in following years. The stalls will have the GlamLab tool for virtual try-ons.
  </p>
</div>


Ulta Beauty

<div>
  <p>
    Estee Lauder is a manufacturer and retailer of skin care, cosmetics, and fragrances. Together with its subsidiaries, the company provides personalized recommendations and custom products using quizzes and augmented reality (AR). Under the Estee Lauder brand, the company only provides personalized recommendations of its own products for skin care and foundation products. In 2017, the company launched an “Estee Lauder Nighttime Expert” app in partnership with Google to provide users with personalized skin care routines and products using voice recognition technology based on a series of questions. In February 2019, the company launched “Liv”, in partnership with Google Home smart speakers, to enable users to test and buy beauty products through a conversation. In May 2020, the app was also launched as a chatbot for the messaging platform Whatsapp in partnership with digital product developer Rehab.
  </p>
  <p>
    Clinique—a prestige brand of Estee Lauder that manufactures and sells skin care, fragrances, and cosmetics products—has introduced “Clinique iD”, a personalized skin serum made from three different bases and five different concentration cartridges. In 2019, the company launched its “Clinical Reality” app to recommend Clinique ID products based on a customers’ selfie. The app also allows the customer to see what their skin could look like after using the product for 12 weeks. Clinique also provides a foundation finder that has a customer answer a short quiz to be matched with recommended products.
  </p>
  <p>
    MAC Cosmetics—another brand under the Estee Lauder company, allows customers to build their own eye-shadow palettes using AR technology to help build customized palettes online. The virtual try-on feature, launched in 2019 through a partnership with AR-beauty developer YouCam, is also available for lip color, foundation, and mascara. With the shift of sales to e-commerce during the Covid-19 pandemic, MAC has introduced the AR try-on facilities in company websites in the UK, Germany, Italy, France, and several other countries. AR smart mirrors, developed in partnership with YouCam, have also been available in several stores since 2017.
  </p>
</div>


Estee Lauder

<div>
  <p>
    Unilever is a multinational consumer goods company headquartered in the UK. The company’s personalized beauty offering is “Skinsei”, launched in 2019, which provides a set of beauty products customized based on an online skin quiz and selfie upload. The products are available as a single kit or on a subscription basis with the option to choose either three products or five products per delivery. After the customer answers the quiz, Skinsei generates a “BioPrint” to recommend products. Skinsei products are vegan and contain probiotics and plant extracts. The product is formulated using an algorithm developed with input from beauty industry experts and clinical studies. Facial recognition technology is also used to measure 10 facial parameters to identify skin conditions.
  </p>
  <p>
    Unilever also partnered with skin care recommendation startup HelloAva in 2019 to co-develop a web app for Unilever’s “All Things Hair” website. HelloAva’s artificial intelligence (AI) recommendation engine will be combined with Unilever’s hair expertise to recommend hair care routines and products after the customer answers an online quiz and posts a selfie. 
  </p>
</div>


Unilever

<div>
  <p>
    Coty is a multinational beauty company that manufactures and sells skin care, cosmetics, hair care, and fragrances. The company has developed several tools and technologies to offer personalized beauty products using augmented reality (AR) technology. In 2018, the company introduced an AR-based try-on mirror in its Bourjois boutique in Paris. The technology was developed in partnership with Holition, a provider of AR technology, and PERCH, a developer of interactive retail marketing technologies. Similarly, Coty introduced an AR mirror in 2019 for its “Wella Professionals” salons to enable customers to try-on different hair colors. The mirror also uses facial recognition technology to retrieve prior customer data including looks and past services. The technology is powered by CareOS, a  developer of smart mirror technology.
  </p>
  <p>
    Coty also provides web-based try-on experience for its COVERGIRL brand of cosmetics products via mobile web browser (without having to download an app). In June 2020, Coty filed for a patent on a method of personalizing fragrances. The new concept will enable customers to enhance the composition of existing products and develop custom fragrances. According to the company, the invention could also be used for other fragranced beauty products such as shampoos, body lotions, deodorants, etc.
  </p>
</div>


Coty

<div>
  <p>
    Nu Skin is a direct seller of personal care products and nutritional supplements under Nu Skin, AgeLOC, and Pharmanex brands. The company’s personalized offering is “AgeLOC Me”, an at-home device that dispenses moisturizers and serums using pre-purchased product cartridges based on customer responses to an online quiz. The customer purchases the custom-blended cartridges—day moisturizer, night moisturizer, and a serum—and inserts them into an at-home dispensing machine.
  </p>
</div>


Nu Skin

<div>
  <p>
    Amorepacific is a South Korean beauty conglomerate with products available in the US, China, France, Australia, and Southeast Asia. In May 2020, in partnership with 3D-printing company Link Solution, the company launched a personalized face mask using 3D printing technology to take precise measurements of the face based on uploaded selfies. Using a skin diagnostic device and big data analysis, skin characteristics of each area of the face is optimized. The mask is 3D printed using a cartridge containing hydro gels. This product is currently available only in Korea.
  </p>
  <p>
    Further, Amorepacific’s “Color Taylor” product helps customers to find lip color using deep learning technology. In May 2020, Amorepacific acquired a minority stake in personalized skin care brand Rationale.
  </p>
</div>


Amorepacific

<div>
  <p>
    Headquartered in the UK, Avon is a manufacturer and retailer of beauty products. The company has approximately six million independent sales representatives globally. In 2018, the company introduced a beauty app with a matching algorithm  to help its sales representatives recommend products to customers. The app requires the customer to answer a short quiz and the sales representative also uses a calibration card to identify skin tone. The information is processed through a proprietary algorithm, developed in partnership with Techkon, a provider of color measurement solutions, to generate personalized product recommendations. Avon also offers virtual try-ons via its website that allows the customer to either upload a selfie, use live video or view the products on a digital model.
  </p>
</div>


Avon

<div>
  <p>
    Shiseido is a Japanese multinational company that manufactures and sells skin care, hair care, cosmetics, and fragrances. The company serves around 120 countries and regions and operates in the US through its subsidiary Shiseido Americas. Shiseido personalizes product recommendations and customizes skin care routines after analyzing the customer’s answers to an online quiz and an optional selfie. Similar recommendations are also available for serums, eye care, foundation, and moisturizers. In 2017, the company acquired MATCHCo, a patent holder for skin scanning technology,  and artificial intelligence (AI) developer Giaran to drive the company’s product personalization capabilities. Both acquisitions were made through Shiseido Americas.
  </p>
</div>


Shiseido

<div>
  <p>
    UK-based Cult Beauty is an online platform that features skin care, make-up, hair care, and fragrances from select brands chosen by an expert panel for the products’ worthiness and usefulness. The company offers products from over 300 brands including The Ordinary, Huda Beauty, Shiseido, Foreo, and Urban Decay.
  </p>
  <p>
    In February 2021, Cult Beauty launched “MatchMe”, a personalized foundation shade finder. The customer provides a selfie and answers to a short online quiz to receive a handful of foundation colors from 1,025 options provided by 23 brands. The technology for MatchMe is provided by partner company MIME (Make It My Experience), a provider of shade finder technology for retailers and brands, that uses artificial intelligence and light-reading technology.
  </p>
</div>


Cult Beauty

<div>
  <p>
    Beiersdorf is a German manufacturer of consumer products with a focus on skin and body care and self-adhesives. The company’s brands include NIVEA, Eucerin, and La Prairie. The company sells globally through over 160 affiliates.
  </p>
  <p>
    In February 2021, Beiersdorf introduced “Only What’s Needed (O.W.N)”, a direct-to-consumer (D2C) personalized skin care brand in several European markets. Customers are offered a unique product from 380,000 possible formula combinations after answering an online quiz. Before the launch, Beiersdorf surveyed over 4,000 consumers and conducted skin studies on over 10,000 women in Europe and Asia to obtain over 2.5 million skin measurements to be used as input to the artificial intelligence (AI) based algorithm. O.W.N products are vegan and come in refillable containers to reduce the harmful impact on the environment.
  </p>
</div>


Beiersdorf

<div>
  <p>
    Based in Germany, Henkel is a manufacturer of beauty care products, laundry and home care products, and adhesive technologies. Henkel beauty products (hair, body, and skin) are available in more than 150 countries. In April 2020, the company launched “Better Natured,” a new haircare brand made of naturally-derived ingredients. The brand includes several haircare products, such as hair color, shampoos and conditioners, hair styling products, and other accessories.
  </p>
  <p>
    In March 2021, Better Natured partnered with Perfect Corp., a Taiwanese provider of beauty tech solutions, to introduce a virtual hair color try-on feature on its website. After taking the haircare quiz, the customer receives hair color suggestions that can be tried on live or by uploading a selfie using Perfect Corp.’s “YouCam” tool, which employs artificial intelligence and augmented reality technologies. Furthermore, the customer can mix shades themselves on the website to receive a more personalized color. Better Natured also offers personalized recommendations for other haircare products through a separate quiz.
  </p>
</div>


Henkel

Acquisition

In-house Product Development

Partnership

Investment

The Incumbents

Nutrafol provides solutions for hair thinning and hair loss with personalized recommendations based on an online quiz. The quiz targets the areas of metabolism, stress, nutrition, hormones, and the environment. Based on the quiz results, a core solution (capsules to be taken on a daily basis) and one or two topical boosters are recommended using a proprietary algorithm. The products are provided as a monthly plan for USD 89 which also consists of 1) one-on-one consultations with a naturopathic doctor and referrals to local MDs if required, and 2) a free hair mineral analysis (based on a lab test) every six months.

Adigica Health’s brand BioClarity recommends a skincare routine of its own products through an online quiz. The routine consists of a cleanser, exfoliant, and a gel. The company has obtained a patent for its plant-based non-toxic ingredient technology. The products can also be purchased separately online. According to the company, its core customers are women aged 16 to 29. The products are priced at a range of USD 10-30 and the company has increased its revenue by over 3.5x YoY since 2018. In May 2019, BioClarity raised USD 13 million in a round led by prolog ventures, which has provided USD 24.6 million in combined total funding for both Adigica and BioClairty.

NakedPoppy uses a patent-pending algorithm to analyze customer data obtained through an online quiz to recommend beauty products from selected “clean beauty” brands including NakedPoppy’s own line of products. NakedPoppy vets every product for safety and quality and as of December 2020, allowed 950 ingredients to be recommended. NakedPoppy’s website was officially launched in July 2019.

Singapore-based Yours recommends personalized skincare products from its own product portfolio based on an online quiz and an optional selfie. The proprietary algorithm based on machine learning and computer vision technology analyzes the data to identify the ingredients that will go into a customer’s products. Yours products are made from ingredients sourced from Switzerland. The product pricing ranges from USD 20-35 and can be purchased as a one-off or on a subscription basis. As of December 2020, the company shipped to the US, Canada, the UK, Australia, New Zealand, and several other countries.

Founded in Finland, Revieve provides virtual try-on and skin analysis technologies based on artificial intelligence (AI) and augmented reality (AR) technology to assist beauty brands in personalizing their offerings. The company allows its clients to offer virtual try-ons to its users on their own websites, mobile phones, and physical locations. The company opened its US headquarters in December 2020 with 70 beauty brand partnerships already established including well-known brands such as Ulta Beauty. In July 2019, Revieve raised EUR 1.3 million (USD 1.5 million) in Series A funding to expand into other geographical markets.

Voir, which targets the business-to-business (B2B) market, offers virtual make-up technologies by combining augmented reality (AR), facial recognition, computer vision, machine learning, neural networks, proprietary 3D rendering, and proprietary anatomic face tracking. As of April 2019, the Voir app has been downloaded by over 2.8 million users globally.

Based in South Korea, Lillycover is a custom skincare solutions provider and manufacturer of  DIY app-based skin-diagnosis devices. The “Muilli” devices are embedded with cameras to analyze pore sizes, wrinkles, sensitivity, and oil-moisture balance which is then processed using an algorithm to determine the current state of the skin. The device is also embedded with sensors to measure conditions such as ultraviolet (UV) levels, temperature, and pH levels. After identifying skin conditions, the app will recommend face masks and face gels. The company had collected over 100,000 skin records as of October 2019 for its database from people in the US, Korea, and Vietnam to develop the algorithm which the company claims is 98.5% accurate. The device is also embedded with plasma disinfection, massage, and sterilization features.
  
  
    In August 2021, the company raised USD 4 million in Series A funding led by POSCO Capital, TBT Partners, IBK, and KITE Entrepreneurship Foundation. The company expects to use new funds to expand its product offerings in the skincare range. It will introduce new product categories in hair care this fall and color cosmetics by the end of this year. The funds will also be used to develop a smart manufacturing system for customized products in small quantities. The company has offices in Korea and the US and plans to tap into new Asian markets including China, Japan, and Vietnam as well as Europe with the assistance of German multinational Beiersdorf.

Amareta produces ready-made skin care products that it recommends to customers based on an online quiz.  Amareta identifies hormones as a significant factor contributing to skin changes and considers conditions relating to a women’s menstrual cycle when formulating a personalized skin care regimen. Amareta also develops products targeting pregnant and breastfeeding women. The products do not include any hormone-disrupting chemicals or synthetic ingredients. The company claims that around 60% of its customers make a repeat purchase.

Taiwan-based Perfect Corp provides business-to-business (B2B) technology solutions for the beauty industry using artificial intelligence (AI), machine learning, augmented reality (AR), and facial recognition technologies. The company’s “YouCam” solution involves skin analysis, virtual try-ons and shade-finder functions which are available online as well as in-store. Perfect Corp has also introduced several supplementary products to YouCam, such as “YouCam Video” (introduced in January 2021) built on its patented AR based “AgileFace” tracking technology that allows users to edit videos by (virtually) applying makeup, and “YouCam Tutorial” (introduced in September 2021), a software-as-a-service (SaaS) tool that assists beauty brands and makeup artists carry out virtual makeup tutorials for customers. 
    YouCam technology is used by major beauty brands such as L’Oreal, Lancome, Decorté, and Neutrogena as well as natural beauty brands such as 100% Pure Cosmetics. The company’s product portfolio also includes a contactless virtual try-on feature, which was introduced in response to increasing demand for such solutions due to the Covid-19 pandemic. This solution uses voice recognition and gesture control to allow the customer to navigate using voice commands.
  
  
    Further, in January 2021, the company raised USD 50 million in series C funding led by Goldman Sachs which the company expects to utilize to drive global expansion and to improve its beauty AI technology. As of September 2021, the app has been downloaded over 900 million times globally.

Hairstory provides a personalized hair care routine using its own products based on an online quiz. The company’s product called “New Wash” combines a shampoo and conditioner. For the personalized routine, a variation of New Wash is recommended along with other hair products depending on the condition of the hair. The recommended kit can be bought as a one-off purchase or on a subscription basis. 
  
  
    The company also operates through a network of hairdressing professionals on a commission basis. As of October 2019, the company had a network of over 1,000 hairdressers which it expects to increase to around 5,000 in the medium term and 10,000 in the long term. As of October 2019, Hairstory had a review database of around 250,000 customers which the company uses to support new clients. Hairstory products are priced from USD 34-40 per month, which is relatively higher than its closest competitor Gemmist. On a subscription basis, refillable containers and shipping will be provided for free. The company ships within the US, Canada, the UK, and the EU.

SkinIQ uses a mobile app based on imaging technology to analyze skin and recommend products that are suitable for each individual depending on their acne and other skin conditions. The customer is required to download the SkinIQ iOS app “Clara”, upload a selfie, and answer a few questions in the app to receive a skin condition report and product and routine recommendations. As of December 2020, the app was in beta testing mode.

Gemmist provides personalized recommendations for hair care products based on an online quiz. Gemmist’s proprietary algorithm analyzes the answers to an online quiz to recommend a shampoo, conditioner, and a scalp balancing bar from the company’s available formulas. The shampoo and conditioner kit are also available for a one-time purchase of USD 45 or on subscription basis at USD 36 per month, which is lower than its closest competitor Hairstory. The company raised USD 3.5 million in April 2020, bringing its total funding to USD 4.2 million.

Elsi beauty recommends its own products to customers using an online quiz. The quiz will collect information on customer skin profile, environment, and hormonal changes to recommend a package of Elsi Beauty products that includes a moisturizer and a cleanser. In October 2019, the company raised USD 1 million in seed funding from Sekhmet Ventures who will also provide the company with strategic counselling.

France-based Jolimoi matches individual customer attributes with select brands using an artificial intelligence (AI) based algorithm. The brands are screened for quality with over 40 registered on the platform as of November 2020. The company currently operates in France and Belgium with plans to expand globally.

The Beauty Marketplace uses machine learning and image processing technology to recommend products from select brands. Customers are asked to upload a photo to identify up to 53 beauty characteristics that are matched with products using an algorithm. The company only focuses on indie beauty brands that can register with the company.

Plum Perfect is an app that scans a selfie to recommend make-up products from selected in-market brands to match skin tone. Once a selfie is uploaded, the app analyzes facial color and extracts a unique color signature for lips, eyes, face, and hair using patented technology. This information is then used to match with a database of products using a machine learning algorithm.

AlgoFace is a provider of face-related technologies such as virtual makeup try-on, emotion detection, face tracking, etc. using artificial intelligence (AI), computer vision, and augmented reality (AR) technologies. The company’s “MAKEUP AR-TIST” product can be used in makeup apps, smart mirrors, and e-commerce websites to offer virtual try-on capabilities for various cosmetic products. In July 2021, the company received a patent for neural network based technology that is capable of searching face images on live video without data-labeling.

Ipsy provides a subscription-based personalized product bundle. Customers answer an online quiz and the company uses proprietary machine learning technology named “IPSY MATCH” to match products from selected brands with customer attributes such as skin tone, hair color, preferred brands, etc. The product bundle known as “Glam Bag” is available in three packages with prices ranging from USD 12-170. Customers are asked to pick three products out of 12 recommendations allowing the company to gain insights on customer preferences which are in turn used to improve its recommendation engine. Ipsy ships to the US and Canada with over 3 million active members as of November 2020. In 2015, the company raised USD 100 million led by TPG Growth and Sherpa Capital.

Heyday is a provider of personalized in-store facials and online shopping recommendations. For in-store visits, a self-reporting quiz and discussion with an on-site aesthetician are used to identify the type of facial that is required. The aesthetician also uses a tool to analyze the skin type of the customer. After the facial, the customer receives an email specifying what skincare routine the customer should follow over the next 30 days along with product recommendations. The customers can also answer a quiz on the website that will recommend products of selected brands that are listed on the website. Heyday operates through franchise partners, with presence in ten locations in New York, Philadelphia, and Los Angeles (three of which are temporarily closed at present due to the Covid-19 pandemic as of February 2021). These store closures resulted in a layoff of staff in March 2020. Subsequently, the company upgraded its online presence by adding one-on-one virtual skincare consultations. The company’s revenue was reported at USD 20 million during the 12-month period up to March 2020. 
    
    In February 2021, Heyday raised 20 million in Series B funding led by Level 5 Capital Partners with participation from several existing investors, bringing the total funding to USD 33.2 million. The funds will be used to accelerate growth by expanding in-store franchise operations and improving the digital experience through innovation. The company aims to expand its physical footprint to “hundreds of stores” within the next five years.

UK-based My Beauty Matches (MBM) uses online quizzes, machine learning, and artificial intelligence (AI) to offer personalized recommendations for third-party beauty products including skincare, hair care, makeup, and fragrances.  The company boasted a database of over 400,000 products from over 3,000 brands as of July 2020. MBM also provides a price comparison tool to its users.

HelloAva recommends skin and hair care products from selected brands based on information collected through an online quiz and an optional selfie. The information is analyzed using a proprietary algorithm to identify suitable products which are then passed on to a licensed aesthetician for further validation. However, unlike other companies, HelloAva charges USD 10 at the beginning of the process which can be applied as a credit during purchase. The company also launched a video consultation platform in March 2020 to provide additional human-centric services to customers as a result of increased online activity during the Covid-19 pandemic. The company has also partnered with several well-known and independent brands that have gone through a vetting process. As of June 2019, the company has provided over 70,000 consultations since its launch.
  
  
    Additionally, in June 2019, Unilever partnered with HelloAva to create a personalization tool in Unilever’s “AllThingsHair” website to recommend personalized hair care routines to its customers.

FaceCake uses augmented reality (AR) and AI-based proprietary technology to provide virtual try-on facilities for a range of markets including beauty products, clothing, jewelry etc. The company had developed several products targeting different markets, for example, “Swivel Close-Up” is an app for online and in-store cosmetics virtual try-on, “ShadeScout” is an app for matching makeup and doing virtual try-ons using a mobile device, and “CAKE”, a platform that works with a webcam of any device. FaceCake offers over 1 billion types of products from a variety of brands on its platform that can be tried on and purchased from the app.

EpigenCare is a personalized skincare platform that recommends products based on skin attributes through DNA analysis. The customer is given an at-home kit, “Skintelli”, to non-invasively collect samples in order to test DNA methylation levels. The company claims to have identified a proprietary panel of genes that strongly correlate with changes to major skin conditions such as aging, moisture, and elasticity. The company has also developed an algorithm to screen product ingredients to determine the best products in the market  for each individual to reverse or slow-down the negative effect of genetics. The company’s database of products includes brands across a wide range of prices. The company launched a beta version in February 2019. The company is pre-launch as of December 2020.

Proven Skincare develops personalized products based on a custom formula that incorporates 45 factors about the user including environment, lifestyle, and skin concerns. Based on the identified skin genome profile, three multifunctional products are developed, i.e. a multifunctional cleanser/toner, a moisturizer, and a night cream/serum. Proven claims that its proprietary “Skin Genomic Database” consists of over 20 million customer testimonials, 8 million online reviews, and data from over 4,000 scientific papers analyzed with machine learning and natural-language processing to identify the most suitable clean ingredients for each customer. 
  
  
    As of December 2020, the company’s products were priced between USD 35-95. The company offers discounts on bundled purchases and subscriptions; for example, a three-product kit which would cost USD 185 if bought individually is offered at a discount of 20% when purchased as a package, and a further discount of around 18% will be applied if the customer signs up for an auto-refill membership.
  
  
    Proven Skincare was launched in October 2019 and was reported to be on track to achieve USD 3 million worth of sales and achieve profitability in its first year of operation. The company has raised USD 6 million in funding.

Atolla provides a customized skin serum based on the customer’s skin profile identified through an online quiz. The profile is analyzed and matched with suitable ingredients using Atolla’s patented algorithm to create the serum. After a few weeks of use, the customer uses an at-home testing kit to measure and share skin conditions in a mobile app. This feedback is then used to alter the skin profile and the serum formula if required. Atolla’s algorithm is a machine learning-based data predictive model that uses past data of all users’ skin conditions over time to match and predict the most suitable serum for each individual. The algorithm’s predictive capability is improved over time with feedback and reviews from users. As of December 2020, the serum was priced at USD 39 per month on a subscription basis which includes the at-home testing kit and one-on-one consultation support.
  
  
    The brand was launched in August 2019 and in July 2020, the company raised USD 2.5 million in seed funding bringing its total funding to USD 4 million with Lyra growth partners as the lead investor. As of November 2020, Atolla served over 5,000 customers and was reported to be on track to achieve USD 2 million in sales in 2020. In August 2021, the company was acquired by Function of Beauty, a developer of custom beauty products.

Sepai is a developer of skin care products sold under the brand names, Sepai, LAB Clinical, Gendecode, and Apoem. Under the Gendecode brand, the company provides custom skin care products based on a DNA analysis. The customer is required to  give a sample of buccal DNA in person which will be analyzed using genomic sequencing. The company’s professionals also collect the customer’s clinical history relating to skin conditions and record the customer’s lifestyle as well as environmental variables. The customer receives a detailed report following the analysis along with customized products such as serums, moisturizers, and cleansers. The products are made by combining one of 45 base options and two boosters selected from a range of 65 options.

The Buff is a provider of custom skincare serums based on an online quiz. The products are a blend of oils chosen from a range of different natural oils to match individual skin conditions. The product was first made as a solution for the founder’s own skin issues which later became commercial. The company also sells standard (not customized) serums for body, face, and hair.

Skinshift provides customized skincare products based on the results of DNA analysis. The company analyzes the results of customers’ at-home DNA test kits to provide detailed DNA analysis reports along with product recommendations. All Skinshift customers are provided with a kit including a cleanser, toner, and moisturizer.  Serum and supplements are personalized based on the DNA results.

Function of Beauty is a developer of custom hair care, skincare, and body care products. The company’s initial focus was on hair care before expanding into body care in July 2020, and skin care in October 2020. Function of Beauty formulates custom products based on an online quiz using an algorithm capable of offering 12 billion custom combinations developed by the company’s founders—a group of MIT engineers and data scientists including Zahir Dossa and Joshua Maciejewski. In September 2021, industry veteran Alexandra Papazian was appointed as chief executive officer (CEO) to replace Zahir Dossa, who will remain on the board as executive chairman.
  
  
    Designing, development, manufacturing, and packaging of Function of Beauty products are carried out in-house with occasional consultant feedback. Most company processes are automated and the company uses a robotic system to dispense each order, with around 20-50 ingredients per bottle. As of December 2020, a 30-day supply of the company’s products was priced between USD 20-50  with 17% discounts available for bundles. As of November 2020, the company was shipping to over 40 countries including the US, the UK, Canada, EU countries, and several Asian countries. In December 2020, the company raised USD 150 million in Series B funding led by L Catterton. The funds are expected to be used to scale-up operations.
  
  
    In August 2021, Function of Beauty acquired Atolla, a custom skincare product developer, marking the company’s first acquisition. Function of Beauty's proprietary formulations will be combined with Atolla's patented skincare technology to offer advanced custom skincare products, expected to launch in Q1 2022.

Hawthorne is a developer of custom fragrance, body care/grooming, hair care, and skincare products for men. The company launched with fragrances, introduced body care products in 2018, hair care products in 2019, and in January 2020 introduced custom skincare products. An online quiz collects information such as daily routine, lifestyle, taste, and familiarity with grooming products. That information is then analyzed using a proprietary data processing algorithm. The company has priced its personalized fragrance at USD 50 and skin and hair care products are priced in the range of USD 17-23. Given limited options in the market for products targeting men, Hawthorne skin and hair care products are reasonably priced. 
  
  
    Hawthorne says that it has been able to improve its recommendation algorithm accuracy to 97%, up from 85% in 2016. The company has reported annual topline growth of 350% each year leading up to January 2020. The company ships to the US, Hawaii, and Alaska.

Founded in Singapore, Skin Inc develops custom skin serums based on information gathered through an online quiz and a skin optimization device. The custom formula is formed using Skin Inc’s proprietary diagnostic tool and algorithm that incorporates environmental and lifestyle factors to determine the custom serum formula. Skin Inc’s encapsulation method is also based on proprietary technology from Japan. Ingredients are encapsulated in natural seaweed to prevent oxidization. The skin optimizer, which was introduced in 2015, uses 3 megahertz low-frequency stimulation and LED chromotherapy to assist in regenerating skin cells. As of November 2020, Skin Inc’s products were available in over 78 cities in the US, Europe, and Asia, with over 200 retail distribution points such as the Skin Inc. concept stores, Sephora and Nordstrom outlets, and selected online partners.

Foreo is a Swedish startup that offers a range of at-home skin care devices called “Luna” along with other products such as face masks, cleansers, etc. The company’s personalized offering is the “Luna fofo” device that works as a two-in-one facial massager and cleansing. The device analyzes skin conditions using advanced sensors  as well as the surrounding environment to develop a personalized routine. The routine provides custom intensity and duration and is created in a mobile app synced to the Luna fofo device. The device, priced at USD 89, is not rechargeable and can be used up to 400 times. The company achieved USD 90 million in sales in 2019.

Skin Dossier is a provider of personalized skin care and hair care products that has yet to launch. The company’s founder is a beauty industry veteran who also co-founded an artificial intelligence (AI) and DNA based personalized beauty products company.

Pure Culture Beauty, founded by the former chief chemist of MAC cosmetics, offers custom skin care products based on an online quiz and an at-home testing kit. When the customer purchases the customized starter kit online, the company will send the at-home testing kit which identifies conditions such as pH balance, oil and sebum levels, and the microbiome analysis, which the customer has to feed into their Pure Culture account. The customer is also required to answer a few questions on the website about skin goals, lifestyle, and their environment. After analyzing the collected data, Pure Culture formulates a custom formula to match the skin conditions of each individual and ships out a custom kit which includes a cleanser, serum, and a moisturizer. The serum can be bought separately as well. The company has partnered with DNA Genotek to supply the microbiome test kits and Diversigen to provide the microbiome analysis services. As of December 2020, the company was addressing common skin needs such as aging, and dark spots, while solutions for specific conditions such as acne-prone skin are yet to be developed. In August 2021, the company launched its products on “thebay.com,” the online platform by Hudson’s Bay Marketplace, marking the first time its products are listed on a retail platform. The company is also planning to enter Hudson’s Bay retail spaces through pop-up stores later in 2021.

Geologie is a provider of custom skincare products for men. The regimen includes a face wash, day cream, night cream, and eye cream which is priced at USD 148  for a 90-day supply. Geologie’s proprietary algorithm matches each individual skin condition with one of nearly 40 pre-identified biochemical profiles. Ingredients of the 40 profiles are tailored based on a custom formulation suitable for each skin condition. As of October 2020, Geologie had over 2,000 customer reviews.

Based in Germany, AVE + EDAM is a provider of custom skin care products. The company provides an online test that identifies personal skin conditions as well as environmental factors such as water hardness, humidity, pollution, and ultraviolet (UV) levels. The collected information is analyzed through an algorithm and matched with ingredients for individual user needs. The company’s products are priced at USD 40 and up.

Founded by two MIT data scientists, Y’OUR uses a proprietary algorithm to analyze customer responses to an online quiz to formulate custom skin care products. The quiz takes into consideration the age, skin type, environment, stress levels, etc. After analyzing the variables, an artificial intelligence (AI) based algorithm formulates a skin care routine for each individual depending on the past experience of people with similar conditions. The recommended skin care routine consists of a cleanser, a day cream, a night cream, and a serum.