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- Changes that blockchain can bring to the Beauty industry.
- How the Cosmetic Industry would be affected by Blockchain Technology.
When you hear words like blockchain technology, the first thing that comes to mind is computers, the internet, or something futuristic, not beauty products such as lipsticks, creams, and other cosmetic products.
Most of the blockchain industry is currently dominated by male investors, and the beauty industry is dominated by female investors. While only 15% of female investors are associated with the technology. So, how can it help the cosmetic industry?
Benefits of Blockchain In the Cosmetic Industry
Blockchain technology can really benefit the Cosmetic Industry and improve its user experience. So let’s take a look at some of its benefits.
Improved Supply chain
As we all know, blockchains are known for their transparency, and this transparency can help the supply chain of beauty products by tracking every step and ensuring the authenticity of the beauty ingredients.
More Privacy and Data Security
The beauty industry is seeing a rising trend of personalization and for that reason, companies are trying to release their customer’s data, which questions their privacy. With blockchain’s strong security and privacy features, customers can trust companies that provide their personal data.
Seamless Operations
Handling many things, such as contracts and loyalty programs, can be tough for many salons and spas. With the incorporation of blockchain technology, these businesses can control most things at once, eliminating the need for paper and improving efficiency.
Using NFTs For Branding
NFTs are the latest fad in the crypto and pop worlds alike. And by using these NFTs, beauty companies can improve customer engagement and create fun branding ideas. For example, a Berlin-based studio, Look Labs launched a high-tech-themed perfume called Cyber, which was incorporated with an NFT artwork. It contained the digital representation of the perfume using NIRS data.
Potential Downsides
Blockchain is not the perfect technology for cosmetic industries and can cause many problems, such as full transparency. Many beauty products these days use raw materials, which they acquire from various sources around the world. Even though they want to provide a full list of the ingredients to the customers, they might not have all the data on it. The second problem would be getting their customers familiar with the industry, because let’s face it, not every user, especially of beauty products, knows what blockchain is, and incorporating ideas such as NFTs might only get stuck in luxury segments with minimal customers.
Conclusion
Blockchain technology can empower many industries, including cosmetic brands, and we see many big companies already utilizing technology to bring many things to their customers. And as more customers get familiar with its technology, we can see more growth in the cosmetic industry. However, for now, these companies can only experiment with it and get themselves ready for the future.
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