A.S. Watson Group Strengthens its O+O Retail Strategy With AI-Enabled Online Skincare Advisor

A.S. Watson Group is the world's largest health and beauty retailer serving billions of customers. Today, A.S. Watson has grown into a family of 12 retail brands in 27 markets loved by millions of customers across Asia and Europe. A.S. Watson Group has been determined to accelerate its digital transformation to serve customers' needs better and strengthen customer interactions across all online and offline channels. 

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As part of its digital transformation, in 2015, A.S. Watson Group started investing in its eCommerce business by establishing an in-house digital team -  eLab, to offer global support to the group's eCommerce business and enhance its presence on digital channels across the globe and respond to the changing needs and expectations of consumers in online shopping experiences.

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Delivering an integrated offline and online experience for A.S. Watson Group customers

Earlier in 2021, A.S. Watson Group unveiled its O+O retail strategy to the new standard for retail, an ecosystem powered by technology, big data, and artificial intelligence, and not just having physical stores and an online store. 

"The traditional strategy of O2O from the past generation drove customers from one channel to another; however, O+O is different. It is more about creating an integrated experience to serve customers' needs better, enabling them to shop across any channel, anytime, anywhere. - Malina Ngai, Group COO of A.S. Watson Group" 

To deliver O+O (Offline plus Online) experience with excellence, A.S. Watson Group had to search for the right technology partners that could help them provide an integrated commerce experience across their 6,000+ physical store network and 100+ eCommerce platforms. As A.S. Watson Group O+O's retail strategy changes how they sell, serve customers, and even the way they manage fulfillment. Today, you can see a complete array of experiences in online skin analysis, online live beauty advice, virtual makeup try-on, and faster and more reliable product deliveries.

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Revieve helped A.S. Watson Group deliver a seamless and personalized digital brand experience for Superdrug, ICI Paris XL,  Marionnaud, and Watsons

A.S. Watson Group had the pressure of the rapidly changing consumer behavior and the critical role technology played in staying competitive and delivering on each of their retail brands' promises. However, even before COVID-19 hit, they had recognized a growing demand for personalized, high-level online experiences and a need to serve their customers in any channel they prefer to shop.  

But the question was how to make these new digital experiences personalized, pleasant, and effortless to the consumer and find the most accurate and trustworthy solution that would provide the same shopping experience online and in-store. Most importantly, a fully customizable solution that would look and feel like each of its retail brands.

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Revieve became the selected partner to deploy a personalized and digital brand experience based on an offering matching A.S. Watson Group O+O retail model requirements. Revieve's capabilities in delivering globally, across all devices seamlessly, in both online and offline environments, and best-in-class computer vision technology that detects several skin metrics made Revieve the selected partner. Furthermore, Revieve's and A.S. Watson Group's vision alignment in brand experience and integrated commerce. 

As a result of the partnership, Revieve deployed its AI Skincare Advisor in Marionnaud, Superdrug, and ICI Paris XL country-specific eCommerce sites. The solution was customized and localized for each country and each retail brand's philosophy.

In the Online Skincare Advisor, users are all welcomed with questions regarding their skin type, concerns, additional skin complaints; those are matched with external location data to provide a more accurate analysis of the user's skin. Next, the user takes a selfie, and Revieve's Computer Vision analyzes 14 different skin metrics from the user's face. Based on those results and Revieve's powerful product recommendations, A.S. Watson Group's business units recommend a daily skincare routine from various brands in their selection. 

"With a consumer's lifestyle and preferences questionnaire, A.S. Watson Group personalizes the product recommendations and provides better-targeted offers. However, what A.S. Watson Group's customers can get today is an in-depth understanding of their skin condition in real-time, thanks to AI and deep learning technology." - Sampo Parkkinen, Revieve, CEO

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The Online Skincare Advisor has improved the AOV, retention, and engagement of Marionnaud, Superdrug, and ICI Paris XL

This case study highlights the key results from Marionnaud, Superdrug, and ICI Paris XL. All three business units have seen a considerable increase across several metrics using the Online Skincare Advisor: AOV, ROI, retention, and engagement.

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In the case of Marionnaud Switzerland, there was a 29% increase during Q2 2022 in the average order value amongst those customers that used the Online Skincare Advisor. Another impressive highlight for Marionnaud Switzerland is that users that engaged with the Online Skin Advisor converted 396% better. Furthermore, users that engaged with the Online Skin Advisor were twice more likely to return to the retailer’s eCommerce site, pointing at how engaging these experiences can be for consumers and deliver tangible business results.
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In the case of Superdrug, there was a 29% increase during Q2 2022 in the average order value amongst those customers that used the Online Skincare Advisor. Similarly, for Superdrug users, we see 70% more conversion rate uplift among advisor users compared to regular users. Moreover, Superdrug saw clear signs of increased user engagement when customers used the Online Skincare Advisor. For example, during Q2 of 2022, they saw how a single user spends five times more on the website when engaging with the advisor, resulting in increased engagement and potential returning sessions. Similarly, a single ICI Paris XL user spent four times more on the website when engaging with the Online Skincare Advisor.