Dive Brief:
- Direct-to-consumer (DTC) beauty company Younique, which is partly owned by Coty, announced its "Younique Beauty Guide," according to a press release sent to Retail Dive.
- The augmented reality (AR) tool performs facial analysis to allow users to virtually try on products from seven different cosmetics categories, including foundation, mascara and eyeshadow, prior to purchase.
- The technology can be accessed online via desktop and mobile devices, per the release.
Dive Insight:
Younique is among the latest brands to unveil AR technology that enhances the product selection experience.
Earlier this summer, Perfect Corp launched "YouCam for Web" that allows consumers to test products using AR tools. In May, cosmetics brand Lime Crime introduced an AR app for the company's Venus XL 2 eyeshadow palette or Softwear Blush. And in March, Macy's expanded an AR feature to all its mobile app users by partnering with Modiface to allow users to virtually try on more than 1,000 cosmetics products across major brands.
While Younique focuses on technology, parent company Coty stated in its latest earnings release that the brand may be struggling with basics. The company reported "lower than expected net revenues" that were due "to a decline in product sales and presenter sponsorship."
On a call with analysts discussing the quarterly earnings, Coty CFO Pierre-André Terisse stated that a turnaround of Younique is a "key focus" for the company. The company's CEO Pierre Laubies added that "Younique, like all multi-level marketing businesses, go through a phase of classic hype and has gone through a phase of hype. Unfortunately, we are in the de-hype phase, if I can say so," according to a Seeking Alpha transcript of the call.
