Cosmetics giant Unilever is at the forefront of integrating technology into business operations, particularly in the beauty sector. The company has over 500 AI capabilities across its global business and recently launched several diagnostic and personalization tools to grab the early mover advantage in personalized skin care and shopping.
Aaron Rajan, vp of go-to-market technology at Unilever, said the company’s commitment to AI through its beauty tools is a means to create personalized consumer experiences and drive growth. Technology is powering a digital beauty revolution and changing how brands communicate, he said. And, “by delivering breakthrough immersive beauty experiences, we can drive science, build desirability and deliver cut-through in an unexpected way.”
For its part, Unilever-owned Dove offers a virtual AI-powered Scalp and Hair Therapist on its website. The tool, launched in March in the U.S., provides diagnostic scalp and hair-care recommendations to consumers who take a 12-step scalp and hair assessment. It is designed to address a wide range of scalp and hair care concerns like dryness and itchiness.
Using large language model technology, the AI searches a knowledge bank of scientifically approved responses aligned with Dove’s brand messages to provide quick, relevant answers. LLM’s are advanced AI systems designed to understand queries and generate human-like text-based responses based on vast amounts of data. Dove’s use of AI is disclosed to Scalp and Hair Therapist users.
“Today, consumers have unprecedented access to information, and they search for scientific evidence regarding ingredient transparency and substantiation of product delivery,” said Rajan.
Bérengère Loubatier, senior global vp of Dove Hair and Skin Care, said the brand is not using the AI Scalp and Hair Therapist beauty tool to drive sales, but rather to allow “curious consumers to get to know their hair- and scalp-health needs — and [Dove] products — better.” According to Loubatier, more non-customers are regarding Dove as a technologically advanced brand because of the AI tool launch.
Also in Unilever’s portfolio, the skin-care brand Pond’s launched a diagnostic AI Skin Expert in Indonesia and the Philippines late last year to help customers understand their skin type and product needs. “Consumers aren’t always aware of the products available to treat their skin-care needs, and they may try several different products before they find the right regimen,” said Rajan. Unilever’s AI tools are often tested in specific geographies before wider rollouts.
In the Philippines and Thailand, Unilever launched the BeautyHub Pro last year to analyze skin information from selfies and surveys and provide personalized skin-care recommendations and product suggestions. Found on Unilever’s website and in Apple’s App Store, the tool recommends products from Unilever’s Dove, Vaseline, Sunsilk and Tresemmé brands. To date, more than 3 million people have used it, according to Unilever.
According to Rajan, consumers who receive recommendations from BeautyHub Pro are 43% more likely to complete a purchase, versus consumers who browse on other channels. The total shopping basket value for these consumers is also 39% higher than those who shop elsewhere.
Integrating AI technologies into Unilever beauty brands’ channels has not been without challenges. One significant hurdle was ensuring the accuracy and reliability of AI-generated product recommendations through the beauty tools.
“Given the speed at which AI is developing, we have faced challenges in moving into a space where there are many unknowns,” said Rajan. “But we worked closely with our tech partners, internal tech teams and brands to develop a solid data foundation.” The company leveraged consumer research to better understand consumers, a knowledge base of information about products and thousands of de-identified images of diverse hair types, for use by its hair brands. It then thoroughly tested its AI systems before deployment to ensure the quality of the responses.
“While these emerging technologies are exciting, the magic happens when you merge them with human creativity,” Rajan added.
Human creativity may be in short order at Unilever as, on July 12, the company announced plans to cut approximately 3,200 roles in Europe by the end of 2025. The move was reportedly influenced by pressure from shareholders, including activist investor Nelson Peltz.
In addition, Vasiliki Petrou, the head of Unilever’s Prestige Division, announced her departure last month after a decade with the company. She played a crucial role in building the division from the ground up through a series of mergers and acquisitions, establishing it as a key part of the company’s Beauty and Wellbeing sector.
On July 25, the company posted strong results for its mass brands in its earnings report for the first half of 2024. For its part, the Beauty and Wellbeing division saw sales climb 7.1% to €6.5 billion ($7.15 billion). The growth was driven by double-digit increases in health, well-being and prestige beauty, although prestige sales experienced “softer growth.”
