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Breaking Through the Growth Bottleneck in the Beauty and Fragrance Industry

by ZhouLucy Updated on April 07, 2025

xTool Retail Studio is pioneering a new era for beauty and fragrance brands with its "Onsite Customization + Instant Delivery" retail solution.

When consumers snap selfies with lipsticks engraved with their names, you're no longer selling just a product—you're offering social currency, emotional resonance, and identity expression.

Empowering Beauty and Fragrance Brands

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Anyone Can Customize, Is That Easy

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Industry Challenges

1. The Impact of Customization for Top Brands
  • "Dior’s personalized engraving service drove double-digit growth in lipstick sales across key markets."
    (Source: Luxury Daily, "The Power of Personalization in Luxury Beauty," 2023)
  • "Gucci’s fragrance engraving pilot increased average transaction value by 120% in test stores."
    (Source: Vogue Business, "How Engraving Became Luxury's New Status Symbol," 2023)

2. Market Scale vs. Channel Struggles

  • "The global personalized beauty market reached $32 billion in 2023, growing 2.4x faster than conventional categories."
    (Source: Euromonitor International, Personalized Beauty Market Trends 2023)
  • "Offline foot traffic rebounded to 90% of pre-pandemic levels, yet conversion rates stagnated at 65%."
    (Source: McKinsey, Global Beauty Industry Report 2023)

Three Critical Challenges

1. Collapse of Brand Premiums

  • 72% of Gen Z will pay a 30% premium for exclusivity but reject traditional brand markups."
    (Source: McKinsey, 2023)

2. Inefficient Customization Processes

  • "55% of consumers demand products that reflect personal style, but stores lack real-time tools."
    (Source: L'Oréal, 2022 Global Beauty Consumer Insights Report)
  • "Production line retrofits require 24 months, raising marginal costs by 20-30%."
    (Source: L'Oréal CTO Barbara Lavernos, Viva Tech 2023 Summit)

3. Eroding Offline Experience Value

  • "68% of shoppers abandon counters due to dull experiences, while customization triples dwell time."
    (Source: Boston Consulting Group, The Future of Beauty Retail 2022)
  • "Store conversion rates have dropped 35% vs. pre-pandemic levels."
    (Source: McKinsey, Global Beauty Industry Report 2023)

Market Trends: Customization = Growth Catalyst

1. Fragrance Customization Surge

"Custom fragrance market to hit $4.23B by 2030 (CAGR 12.4%)."
(Source: Grand View Research, Custom Fragrance Market Report 2023-2030)

2. Tech-Driven Efficiency

  • "Shiseido’s Optune system boosted repurchase rates by 30%."
    (Source: Shiseido Group, 2023 Investor Day Presentation)
  • "Givenchy’s refillable lipstick cores lifted transaction value by 40%."
    (Source: LVMH, 2023 Q4 Earnings Call Transcript)

3. Evolving Consumer Behavior

"Dior’s customized lipsticks achieve 3x higher repurchase rates than standard SKUs." (Source: Bernstein, The Customization Effect, 2023)

Why xTool Retail Studio Is the Ultimate Solution?

  •  Low Investment, High ROI: <$3,000 per store
  • Reimagined Experience: End-to-end real-time customization
  • Instant Delivery: 3-minute fulfillment (vs. 3-7 days), 8x faster
  • Material Versatility: Supports 300+ materials (metal/glass/acrylic)
  • Safety Compliance: Fully enclosed design + AP2 air purification
  • Space Optimization: 0.05㎡ footprint maximizes store revenue/sq.m

Customization is no longer optional—it’s the entry ticket for survival in beauty retail. xTool Retail Studio delivers not just equipment, but a growth formula: "Experience → Conversion → Advocacy."

Click to Unlock: Retail Customization Whitepaper 

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