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Companies in the beauty industry are looking at cryptocurrency and blockchain technology to improve their rewards programs and grow their customer base.
With continued interest in blockchain and cryptocurrencies, we have seen the disruptive technology be used in a range of businesses. Journalism, art, and sport are just a few of the sectors that are embracing the revolution. Now, we can add the beauty industry to that list.
According to Glossy, some companies are integrating virtual currencies and blockchain technology into their reward-based systems. Two platforms, in particular, seem to be betting on blockchain when it comes to customer interest and retention.
Using Blockchain for Data Sharing
Based in Southeast Asia, Opu Labs uses blockchain to allow people to submit certain personal data in exchange for OpuCoin tokens. These can then be used to purchase products or services on the platform. Users all over the world can upload their photos, which will be stored on the blockchain and analyzed using artificial intelligence (AI). Skincare manufacturers and even dermatologists will then use it for research purposes.
The COO of Opu Labs, Richard Reed, explained the significance of this type of system:
We want to [promote] the idea that blockchain means you own your data and you get to decide if you want to share it or not. The crypto incentive is a way to decide if you want to participate and get discounts and services.
There is this economy that is developing, and we provide a mechanism: We have a marketplace where brands can come in and buy coins; users can [use] their coins or redeem them for purchases.
While currently based in Asia, the platform will soon be expanding to the U.S. and Europe.
Digital makeup app, Perfect365, is making use of an existing cryptocurrency, Kin. Members will be able to earn Kin by watching video tutorials and then earn even more by answering surveys. Users can spend Kin on the platform by downloading high-resolution pictures from the app and then uploading it onto social media to entice big brands to advertise with them.
Kin was created by Kik, a Canadian messaging app. The latter’s director of partner success, Sergio Silva, said:
You’re creating earned opportunities, but what you’re really trying to do is create spend opportunities. That drives the [crypto] economy.
A spokesperson for Perfect365 added that “the more active and engaged our users are, the more value we bring to our beauty brand partners.”
Can Make-up Increase Diversity?
Live Bitcoin News has previously reported on the lack of diversity in the cryptocurrency industry. One of the reports shows that only 7% of females in the survey are interested in crypto investment compared to 18% of their male counterparts.
While females are by no means the only stakeholders in the beauty industry, they do dominate it. Introducing cryptocurrencies and blockchain could be an innovative way to widen that gender gap in the industry.
This, in turn, will increase the overall number of people that are actively using this technology and who knows what implications that could have for the retail industry in the future. Opu Labs’ Reed gave his opinion on what that future could look like:
I think in a not-too-distant future everyone will have the equivalent of a PayPal account with different cryptocurrencies — you will have all these different loyalty programs and points [from different brands].
Do you think that integrating crypto into the beauty sector will increase the number of females active in the industry? Let us know in the comments below!
Images courtesy of Pixabay and Shutterstock.