The Digital Makeover: The Role of Business Intelligence in Rebuilding the Beauty Sector

There’s no question that the beauty sector has taken a beating in recent years. Between the downturn in the global economy and shifts in consumer preferences, many traditional beauty brands have been forced to close up shop. But all is not lost! 

Thanks to business intelligence, there is still hope for rebuilding the beauty sector. In this post, we’ll explore how business intelligence can help your business thrive in today’s competitive landscape. 

What is business intelligence and what role does it play in the beauty sector 

The global beauty industry is currently worth over $500 billion and is only growing. In order to sustain this growth, businesses need to be constantly innovating and finding new ways to reach their target market. This is where business intelligence (BI) comes in.

In the digital age, consumers are more empowered than ever before. They have access to a wealth of information and can easily compare products and prices online. As a result, businesses must work harder to win and retain customers. 

BI can help businesses stay ahead of the curve by understanding how consumers search for and purchase beauty products. Beauty product companies can use business intelligence reporting services to track how customers search for and purchase beauty products and ultimately gain “a more meaningful understanding of the business” , notes BI dashboard providers, Fourth Dimension

BI can be used to track which keywords are being used most frequently on search engines, identify which social media platforms are being used most often to research beauty products, and understand what factors influence purchase decisions. By using BI, beauty product companies can keep their finger on the pulse of the industry and ensure that they are always ahead of the curve.

How can BI help beauty businesses rebuild after a downturn

The beauty industry was one of the hardest hit by the pandemic, with global sales declined by nearly 20%. But even in the midst of this downturn, businesses that adopted digital technologies and made data-driven decisions were able to weather the storm and emerge stronger.

While there is no silver bullet for rebuilding a business after a downturn, investing in business intelligence is one way that beauty businesses can set themselves up for success in the post-pandemic world.

The benefits of using BI to improve forecasting, product development, and marketing

The beauty industry is in the midst of a digital makeover, as businesses scramble to keep up with the ever-changing needs and preferences of consumers. One of the most important tools in this process is business intelligence (BI), which can provide insights that help businesses make informed decisions about forecasting, product development, and marketing. Here are some benefits of BI:

Helps understand consumer behavior

Business intelligence tools can help companies to gather and analyze data, identify trends, and make better decisions. For example, data gathered from social media can be used to understand what consumers are talking about and what they are interested in. 

This information can then be used to make decisions about product development, marketing, and sales strategies. By using business intelligence, businesses in the beauty sector can make sure that they are ahead of the curve and well-positioned for future growth.

Inform about what new products or services need to be developed

BI tools can provide insights into consumer behavior, allowing brands to be informed about what new products or services need to be developed. In addition, business intelligence can help brands to identify new market opportunities and understand the competitive landscape. 

Assists in crafting data driven marketing campaigns 

Since customers have now become more aware and selective, it has become really important to target them using the right channels at the right time. For example a person who loves trying out new cosmetics would not respond to television commercials as often as he would to mobile ads while scrolling down his social media feed. By using business intelligence analytics, you can decide when, where, and how to best reach your target customers.

How BI has been used successfully by beauty businesses in the past

The pandemic has been tough on the beauty industry. With many brick-and-mortar stores closed and consumers spending less, businesses have had to quickly adapt or risk going under. One way that beauty brands have been able to stay afloat is by using business intelligence.

One such business is L’Oreal, which has used BI to personalize its marketing campaigns and drive sales growth. The cosmetics giant has used data collected from platforms like Facebook and Instagram to create targeted ad campaigns that speak directly to its customers’ needs and interests. The result is a more engaged customer base and higher conversion rates. In a highly competitive industry, L’Oreal’s use of BI is a prime example of how businesses can use data to their advantage.

Another is Sephora, which has used BI to improve its inventory management and reduce waste. 

Sephora is one beauty retailer that has used BI to its advantage. The company realized that 30% of its products were lying unsold on shelves due to poor inventory management. By using BI, Sephora was able to not only reduce this waste but also save on storage costs. In fact, the company cut its losses by $75 million in just three years!

Moreover, wholesale suppliers have had to rapidly adapt their business model to meet the changing needs of the beauty industry. Business intelligence has played a vital role in helping suppliers navigate these challenges. By using data to understand consumer behavior and identify trends, businesses have been able to adapt their strategies and keep up with changing demands. 

For example, many suppliers have switched to online-only sales in order to reach a wider audience. Others have shifted their focus to specific product categories that are in high demand, such as skincare and hair care products. Business intelligence helps wholesale suppliers to make the necessary changes to stay afloat during these difficult times.

The future of BI in the beauty industry

The global beauty industry has taken a hit in recent years, with the global pandemic causing a sharp decline in sales. But the industry is far from dead, and there is still immense potential for growth. 

Business intelligence (BI) will play a key role in the future of the beauty sector, helping to re-bundle the industry and create new opportunities for growth. BI can help to identify trends and customer needs, allowing beauty brands to tailor their offering to specific segments. 

It can also help to optimize marketing campaigns and track sales data to ensure that resources are being used effectively. In addition, BI can help to improve supply chain management, reducing costs and ensuring that products are delivered on time.

Hence, as the world continues to move online, business intelligence will become even more important for the beauty industry. Those who embrace BI will be well-positioned to take advantage of the latest trends and technologies and build a strong foundation for future success.


BI can help beauty businesses understand their customers and what they want. It also allows them to track the competition and make strategic decisions accordingly. By rebuilding the beauty sector through the use of BI, we can create a more efficient and customer-centric industry. Have you used BI in your business? If not, why not?