Brick-and-mortar businesses are becoming a distance past it seems as our world continues to grow and change each year. With more and more companies started as solely virtual with no plans to ever have a stand alone store, consumers are adjusting to a world where you don’t always get to see or feel something in person before purchasing. This business strategy has been coined as a “purely digital retailer.” This adjustment is becoming more of the social norm as social media and online marketing tools are adapting at a rapid rate. 

One major player in this game is II Makiage creator Oddity, the startup who found huge success using A.I. technology to sell consumers beauty products. They are seeking to disrupt the in-store beauty purchasing experience with product recommendations driven on data and artificial intelligence. With the use of a huge marketing platform, which includes social media posts made by popular celebrities and how-to videos, they have entered the market and ran with it. They boast $380 million dollars in gross sales in 2022 and over 40 million users. They capitalize on the fact that customers aren’t going into stores for specific products, but rather advice to achieve the look they are seeking. With the integration of A.I. technology and data that the company is able to gather from the customer based on a short beauty quiz, they are able to offer the advice the customer is searching for and provide a likable product. The quiz results have been concluded to be correct for the customer over 90% of the time. With results this high, they are able to provide the recommendations and help that normally an in-store experience can offer.

Interestingly enough, more than 40% of the company’s staff comes from a technological background, but none come from the beauty and wellness industry. The technology aspect is huge in this business and has driven their success. The looming problem of fads in this day-and-age is substantial, but Oddity also has a plan for that as well with different platforms and expansion plans in the works to help them stay relevant. By continuing to stay on top of the every-changing consumer market, they hope to stay ahead of the game. What the future holds for this company is uncertain, as is anything, but the business plan and strategy they have developed looks like a promising one. 

Changing Business Models
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