COSMOTALKS ‘Retail 2025: adapt to the new beauty retail landscape’. On Friday 16 March, ELSE Corp‘s CEO & Co-Founder, Andrey Golub, presented his vision of the Retail of the Future during the COSMOTALKS, “a perfect combination of strategic insight and granular detail, with coverage that moves as fast as the market itself”. more info: http://www.else-corp.com/mypowderful-cosmoprof-2018

1. Andrey Golub
andrey@else-corp.it
Founder & CEO, ELSE Corp
RETAIL 2025
STORE ENTERTAINMENT &
THE RAISE OF AI

2. © 2018 ELSE Corp S.r.l. 2
The Flourishing of Concept Retail Stores
Consumers
would be more
likely to shop at
a physical store
if it also
includes…
VR & AR
demonstrations
Dining
Entertainment
Interactive experience
to select and customize
products
Gen Y Gen Z
73%
70%
70%
66%
80%
73%
80%
79%
Data: JWT, 2016

3. 3
DIGITAL TRANSFORMATION IN FASHION
© 2018 ELSE Corp S.r.l.
A Virtual Retail Company

4. Key Concept
VIRTUAL
RETAIL
New Concept
REAL TIME
FASHION
SYSTEM
CONCEPTS
PRODUCTS
FRAMEWORKS
© 2017 ELSE Corp S.r.l. 4
ELSE Corp, a Virtual Retail Company since 2014

5. 5© 2018 ELSE Corp S.r.l.
Physical point of sale where the end user
can tangibly experience the brand’s
configuration process
The ideal In-store Virtual Retail Corner
of a brand comprises of five core
elements - essential to the deployment
of the E.L.S.E. Virtual Retail platform &
experience in a physical retail space.
SALES ASSISTANT TABLET APP
PHYSICAL SAMPLES
VIRTUAL 3D PRODUCT
CONFIGURATOR
VIRTUAL STYLE CATALOGUE
3D FOOT SCANNER HARDWARE &
RELATED APP
Virtual Retail Corner: Footwear Boutiques & Department Stores

6. Each Virtual Capsule collection is comprised of a selection of items that follow the
theme or mood of the collection. Each product within the v.c.c. is made up of
elements, and each element has it’s own set of possible configurations.
6© 2018 ELSE Corp S.r.l.
Virtual Collections: 3D Fashion, Product Personalization, Made to Measure

7. 7© 2018 ELSE Corp S.r.l.
A Working Model for Footwear - Launch in September 2017

8. 8© 2018 ELSE Corp S.r.l.
Virtual Product Configurator, In Store & Web

9. Web & App 3D Configurator VR 3D Configurator
AR 3D Configurator HoloLens 3D Configurator
9
Front-End for Mass Customization, powered by E.L.S.E.
INTEGRATION
INTO DIFFERENT
ENVIRONMENTS
© 2018 ELSE Corp S.r.l.

10. PremiumLoyaltyProgram
Premium
Services
Next
Purchases
MTO Items
FASHIONISTA
CLASSPIRATIONAL
EXPERIENCER
SOCIAL WEARER
LUXE IMMUNE
A Happy & Loyal
Customer as Brand
Evangelist
© 2018 ELSE Corp S.r.l. 10
Premium Loyalty Program Subscription Scheme

11. 11
LUXURY & BEAUTY RETAIL 2025
© 2018 ELSE Corp S.r.l.

12. Product Personalization & Direct to Consumer Digital Transofrmation
New Customer & Shopping Experience
12
2025: Macro Trends
MACRO
TRENDS
© 2018 ELSE Corp S.r.l.
The Rise of AI

13. 13
Customer Interactions Belong to Super Brains
© 2018 ELSE Corp S.r.l.
http://www.information-age.com/RETAIL-NEXT-BIG-INDUSTRY-IMPACTED-AI-123462561/
By 2020, 85% of customer interactions will be
managed by A.I. (Gartner)

14. 14
Segments of One
© 2018 ELSE Corp S.r.l.
Marketers Need Artificial Intelligence
to Reach the Segment of One
https://www.emarketer.com/Article/Marketers-Need-Artificial-Intelligence-Reach-Segment-of-One/1016840?ecid=NL1015

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DIY & AI
© 2018 ELSE Corp S.r.l.
When the “self made” customisation
is not enough

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PRODUCT PERSONALIZATION &
DIRECT TO CONSUMER
© 2018 ELSE Corp S.r.l.

17. 17© 2018 ELSE Corp S.r.l.
Customization & Personalization

18. Knowing that customization is the future
in retail, manufacturing and shopping
experience, we created our platform as
a tool to meet the demands of people
who…
18
Mass Customization - Market Expectation
Spend money on personalization
Pay a premium price (+20% on average)
45%
25%
(Deloitte, 2015)
(Forrester, 2015)
© 2018 ELSE Corp S.r.l.

19. 19
3D Printing & Makeup
3D PRINTING
&
MAKEUP
http://gracemink.com https://www.foreo.com/institute/moda/
• Personal 3D makeup printer
with cosmetic grade
• Compatible with personal
devices
• Creates economies of scale
in individual cosmetic
consumption
• Spinoff Makeup Hacker
allows customers to transform
the colour of any makeup in
possession
• Digital 3D printing makeup
technology customizable
to individual facial
geometry using 3D facial
scanning and tripe layer
3D printing
• Full custom makeup look
achievable within 30
seconds
• Integrated app provides
real-time customizable
inspirations from red
carpets, magazines,
runways, etc.
© 2018 ELSE Corp S.r.l.

20. 20
Custom Face Masks
© 2018 ELSE Corp S.r.l.
https://www.bustle.com/p/this-viral-gadget-lets-you-make-your-own-sheet-masks-73299
• EgoEra prints a face mask that is a
personal sheet mask
• It allows to target whatever skin care
issue the user may have
• To create a face mask, vegetables and
fruits are used to craft juices that
contain ingredients for common skin
problems

21. 21
When Products Become Services
© 2018 ELSE Corp S.r.l.
https://www.psfk.com/2018/02/philips-skincare-assessment-kit-gives-personalized-advice.html
• “Skincare Assessment Kit”
• Device and app that connects users to
dermatologist to create a skin report
• The report includes customised advice
about skincare, recommendations and
practices to add to their skincare routine

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Emerging Beauty: “Adapting, engaging and personalizing at the speed of selfie”
© 2018 ELSE Corp S.r.l.
• Created a Slack channel to feed direct
customer insight into product decisions
• Box with a personalised selection of
beauty products
• Platform that focuses on featuring innovators
who are related to the use of make up, style,
fitness, self-care and technology
https://www.glossier.com/products/glossier-you https://www.birchbox.com https://beautycon.com
Emerging beauty brands are audience-focused and feedback-driven. Their founders are intimately involved in
consumer conversations.

23. 23
NEW CUSTOMER & SHOPPING
EXPERIENCE
© 2018 ELSE Corp S.r.l.

24. © 2018 ELSE Corp S.r.l. 24
Next in Fashion & Design: Future Virtual CX

25. 25
AR in Beauty
© 2018 ELSE Corp S.r.l.
• Expects to make colour
testing easier by simulating
makeup products on a
user’s face
• It shows what a person
would look like in real-time
and without having to
upload a photo
https://vimeo.com/244625501

26. 26
On-demand Design / Production & A.I. Optimization
• Allows customers to virtually try on
different makeup products
• It tracks what a user is most interested in
based on his or her eye movements
https://digiday.com/marketing/smashbox-using-eye-tracking-technology-increase-sales/
© 2018 ELSE Corp S.r.l.

27. 27
VR Enhanced Facials
© 2018 ELSE Corp S.r.l.
• Experience that begins with a
welcome ritual and physical touch
• The experience is complemented
by an immersive VR video
https://www.naturabisse.com/en/news/the-mindful-touch

28. 28
Digital Mirror with Assistant
© 2018 ELSE Corp S.r.l.
• “Morror Smart Mirror” is a
bathroom device that offer
beauty tips
• The smart mirror displays
makeup and skin video
tutorials directly on its surface

29. 29
THE RISE OF AI
© 2018 ELSE Corp S.r.l.

30. © 2018 ELSE Corp S.r.l. 30
A.I. Trends in Fashion & Retail
Algorithm Driven Design
Big Data Analysis
Face Recognition &
Biometric Analysis
Style Analytics
Style Suggestions
Personal Assistants
Virtual Fitting with A. I.
TRENDS IN
FASHION
& RETAIL
Personalization &
Customization
A.I.
Mass
Customization

31. 31
Predicting Fashion Through Machine Learning
© 2018 ELSE Corp S.r.l.
Today’s Technology Is Shaping Retail’s Future:
Predicting fashion trends using machine learning
http://www.digitalistmag.com/customer-experience/2018/01/03/retail-tomorrow-how-todays-technology-is-shaping-retails-future-05682564

32. 32
Algorithmic Analysis & Generation
ALGORITHMIC
ANALYSIS &
GENERATION
https://www.ijcai.org/Proceedings/16/P
apers/365.pdf
https://www.google.com/patents/WO2
015127394A1?cl=en
Makeup Like a Superstar:
Deep Localized Makeup Transfer Network
• Automatic Personalised makeup recommendations
• Cosmetic - and region - specific digital makeup transfer
• Possible real - life application includes virtual makeup trials
and integration with image editing programs
System for beauty, cosmetic, and fashion analysis
• A system and method are provided to
detect, analyze and digitally remove
makeup from an image of a face. An
autoencoder-based framework is
provided to extract attractiveness-aware
features to perform an assessment of
facial beauty.
© 2018 ELSE Corp S.r.l.

33. 33
AI in Beauty
© 2018 ELSE Corp S.r.l.
• The brand offers personalised skin care solutions
aimed specifically at people dealing with acne
• The user is matched with a dermatologist who will
know the type of skin, and follow the progress
• The brand offers personalised skin care solutions
aimed specifically at people dealing with acne
• The user is matched with a dermatologist who will
know the type of skin, and follow the progress
• Hardware called SkinScanner. Using machine
learning, it compares the skin to other users in a
range of age
• It gives detailed information about skin type and
personalised suggestion to improve the skin health
based on Neutrogena products
https://www.neutrogena.com/skin360-app.html https://curology.com https://www.functionofbeauty.com

34. 34© 2018 ELSE Corp S.r.l.
VISIT US: COSMOPRIME HALL 19