How Avon and Revlon Are Using AR to Cut Down on Returns

Augmented reality isn’t just a toy, it can be a powerful tool for deepening connections with your younger customers. That’s particularly true in the realm of beauty e-commerce, where AR can give consumers an opportunity to virtually “try on” a product before purchasing it. According to a 2022 Dynata survey of 11,000 global consumers, over 75 percent of respondents expressed interest in AR-powered shopping experiences, with 90 percent of Gen-Z respondents saying they’d be interested in using AR to virtually try makeup and hair products. 

One of the top providers of AR-powered beauty technology is Taiwan-based company PERFECT, which went public on the NYSE in November 2022. Founded by Alice Chang in 2015, the company works with beauty and fashion brands including Estee Lauder, Revlon, and Benefit, to develop camera filters that use a combination of AI and AR to let customers see how products would look specifically on their skin.

Here’s how it works: Users are scanned by an AI system that collects data on their facial geometry and skin tone. Then, that data is used to overlay the desired makeup product on the user’s face. In addition to beauty, the company uses this technology to offer try-on experiences for fashion items, like bracelets and watches. 

For beauty businesses selling their products on the internet, this virtual try-on experience can help boost sales from customers who would otherwise wait to try the product in-store. In a case study, beauty brand Avon’s CEO Kristof Neirynck said that since the company started using PERFECT’s technology, it saw a 320 percent increase in conversion rate and a 33 percent increase in average order value for customers who used the virtual try-on experience. 

At the 2024 Consumer Electronics Show (CES), chief marketing officer Adam Gam told Inc. that PERFECT is focused on scaling and expanding its reach this year, having recently announced a collaboration with Wal-Mart, which will empower customers to virtually try on thousands of beauty products through the Wal-Mart mobile app. The company also teased an upcoming collaboration with a majority beauty retailer, with more details coming soon.