Digitalization in the Cosmetics Industry

This document discusses the impact of digitalization in the cosmetics industry, specifically focusing on the role of social media influencers. It analyzes the relationship between increased use of social media and brand consumer interaction, as well as the credibility of influencers and the quality of feedback. The findings highlight the importance of social media and influencer marketing in increasing customer engagement and improving product quality.

Digitalization in the cosmetics industry

Table of Contents
INTRODUCTION...........................................................................................................................1
Discussion and Result Analysis.......................................................................................................1
Thematic analysis ........................................................................................................................1
Discussion..................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The project is based upon the topic that is “Digitalization in cosmetic industry” and it
describe the result by using SPSS tool that clearly represent the views of respondents and show
the reliability and validity of hypothesis as well. Further, it describe the discussion that clearly
reflect that digitalization is helpful in cosmetic industry specially social media.
Discussion and Result Analysis
Thematic analysis
Statistics
Do you follow a lot
of such bloggers?
Do you trust their
opinions on the
quality of a
product?
Do you think the
ability to have
direct
communication
with brands and
exposure to
influencers has
increase
engagement
amongst
consumers?
Do you follow
brands on social
media as well or
just the
influencers?
Do you think the
ability to have
direct
communication
with brands and
exposure to
influencers has
increase
engagement
amongst
consumers?
do you
Cust
engagem
incre
feedba
influenc
which ha
improved
of produ
service
offered
N Valid 20 20 20 20 20
Missing 0 0 0 0 0
Theme 1: Majority of them follow bloggers
Do you follow a lot of such bloggers?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 13 65.0 65.0 65.0
No 7 35.0 35.0 100.0
Total 20 100.0 100.0
1

Interpretation: From the above interpretation, it has been interpreted that out of 20
respondents, 13 state that they follow a lot of such blogger and only 7 state that they did not
follow such blogger. Therefore, it clearly shows that most of the respondents follow the blogger
and it clearly shows that they have to there is a interaction between the social media and brand,
that is why, they follow influencer.
2

Theme 2: Majority of the responders have trust their opinion on the quality of products
Do you trust their opinions on the quality of a product?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 12 60.0 60.0 60
No 8 40.0 40.0 100
Total 20 100.0 100
3

Interpretation: As per above graph, it has been interpreted that majority of the respondents
are in favour that they trust their opinions on the quality of a product. Such that out of 20
respondents, 12 state that they trust, while only 8 said that they did not trust the influencer's
opinions on the quality of a products.
Theme 3: Most of them are in favour that they have an ability to have a direct
communication with brands exposure to influencers
Do you think the ability to have direct communication with brands and exposure
to influencers has increase engagement amongst consumers?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 13 65.0 65.0 65.0
No 7 35.0 35.0 100.0
Total 20 100.0 100.0
4

Interpretation: Yes, majority of the respondents are in favour that they have an ability to
have a direct communication with brands and exposure to influencers also increases the
engagement in customers. Such that out of 20, 13 are in favour, while 7 states they are not.
Therefore, it clearly shows that influencer is direct increases the engagement among the
consumer.
Theme 4 : Most of them state that thy follow influencers
Do you follow brands on social media as well or just the influencers?
Frequency Percent Valid Percent Cumulative
Percent
5

Valid
Influencer 12 60.0 60.0 60.0
Social media 8 40.0 40.0 100.0
Total 20 100.0 100.0
Interpretation: From the above graph, it has been interpreted that most of the respondents
are in favour that they follow the influencer. Such that out of 20 respondents, 12 of them state
that they follow influencer rather than brand on social media and only 8 states that they follow
brand's social media page. Therefore, it clearly shows that influencer helps the brand to have a
direct relationship between the customers and company.
6

Theme 5: Majority of them are in favour that customer engagement has increased feedback
from influencer side.
do you think Customer engagement has increased feedback from influencer side,
which has in turn improved the kind of products and services being offered to
you?
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 13 65.0 65.0 65.0
No 7 35.0 35.0 100.0
Total 20 100.0 100
7

Interpretation: Majority of the respondents are in favour that the customer engagement also
increases the feedback from the influencer side and as a result, in turn it improve the kind of
product and services which are offered to their customers. Such that out of 20 respondents, 13
state that they actually think that taking feedback from influencer side also increases customer
engagement and as a result it also improve the kind of products. Thus, it clearly shows that, it
affect the incredibility of all influencer.
H0: There is no difference between increased use of social media and brand consumer
interaction.
H1: There is difference between increased use of social media and brand consumer
interaction.
Variables Entered/Removeda
Model Variables Entered Variables
Removed
Method
1 Do you follow a lot
of such bloggers?b . Enter
a. Dependent Variable: Do you think the ability to have direct
communication with brands and exposure to influencers has
increase engagement amongst consumers?
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .560a .314 .276 .416
a. Predictors: (Constant), Do you follow a lot of such bloggers?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
8

1
Regression 1.429 1 1.429 8.243 .010b
Residual 3.121 18 .173
Total 4.550 19
a. Dependent Variable: Do you think the ability to have direct communication with brands and exposure to
influencers has increase engagement amongst consumers?
b. Predictors: (Constant), Do you follow a lot of such bloggers?
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .593 .279 2.123 .048
Do you follow a lot of
such bloggers? .560 .195 .560 2.871 .010
a. Dependent Variable: Do you think the ability to have direct communication with brands and exposure to influencers has
increase engagement amongst consumers?
Interpretation: From the above, it has been interpreted from the model summary, R value
simply represent the simple relation, i.e. 560 and on the other side, R square value clearly
indicates how much of the total variation are explained by an independent variable. In addition to
this, it is also analysed through Anova Test that how well the regression equation is fits into a
data. In this situation, if p is less that 0.0005, then it clearly indicates from the study 0.010 is
greater than 0.0005 that overall regression model is statistically significant that it predicts the
outcome variable, which means that it is quite good fit for data. As, it is also interpreted that it is
having a significant value that shows if there is increased use of social media then the brand
customer interaction is also increased.
In addition to this, It is also interpreted that as if the customer increased the usage of
social media, that directly influenced the interaction of brand with customers. Therefore, it s also
proved through regression test that there is a closely link between the usage of social media and
increasing relation of customer with brand.
9

H0: There is no difference between credibility of an influencer and quality of feedback.
H1: There is difference between credibility of an influencer and quality of feedback.
Variables Entered/Removeda
Model Variables Entered Variables
Removed
Method
1
Do you follow
brands on social
media as well or
just the
influencers?b
. Enter
a. Dependent Variable: do you think Customer engagement has
increased feedback from influencer side, which has in turn
improved the kind of products and services being offered to
you?
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .471a .222 .178 .444
a. Predictors: (Constant), Do you follow brands on social media as well or just
the influencers?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 1.008 1 1.008 5.125 .036b
Residual 3.542 18 .197
Total 4.550 19
a. Dependent Variable: do you think Customer engagement has increased feedback from influencer side,
which has in turn improved the kind of products and services being offered to you?
b. Predictors: (Constant), Do you follow brands on social media as well or just the influencers?
10

Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .708 .300 2.359 .030
Do you follow brands on social
media as well or just the
influencers?
.458 .202 .471 2.264 .036
a. Dependent Variable: do you think Customer engagement has increased feedback from influencer side, which has in turn
improved the kind of products and services being offered to you?
Interpretation: It is interpreted from the above, that R shows the simple correlation that is
0.471 and on the other side, R square is clearly describe how much of the total variation in the
dependent variable. On the other side, this shows that there is significant relationship between
the credibility of the influencer and quality of feedback. Thus, the hypothesis is proved.
Moreover, through Anova test it has been interpreted that if p< 0.005 then there is a significant
relationship between the increased used of influencer that directly increased the quality of
feedback for the firm.
In addition to this, it is observed through coefficient table that there is link between the
dependent and independent variable. Such that when there is change in independent variable and
it affect the dependent variable up to 004 percent. Thus, it clearly shows that the result and
assumptions are in favour and there is a significant relationship between dependent and
independent variable.
Discussion
From the above, it is clearly analysed that social media has direct impact upon the
customers and even on the other side, through the SPSS tool it is more clear that influencer also
affect the customers purchasing. As per the view of Jasman, (2018) in this modern era, every
company wants to used digitalization technique that help to stay competitive in the market and
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in the same way, cosmetic industry also use different tools that is in social media, the Instagram
is one of the most effective tool because most of the public used such that the data shows it is the
most popular and frequently visited site among women. For that most of the cosmetic company
uses social influencer for their marketing terms. Even it is also analysed that providing
opportunity to the influencer in social media is more helpful to develop the interaction between
the customers and brand. The same is also interpreted through regression test in SPSS that is,
there is a clear relationship between increased use of social media and brand consumer
interaction, as already proved.
Moreover, it is also observed that there are so many successful professional in the beauty
industry who also started their career as a blogger in Huda Kuttan and as per the secondary
research it is analysed that she is one of the highest paid Instagram Influencer and this is also
showed that there is a clear link between the influencer and brand. On the other side, it is also
critically evaluated by Kim, Yang and Kim, (2018) that every individual have their own
perception on brand and it can be only change when the firm uses influencer that is blogger.
According to majority of respondents, social media is being seen as a positive aspect for
marketing of cosmetics products and services. In a recent period of time, it has been observed by
majority of answerers that social media is being used by maximum number of people which can
help the companies involved in cosmetics dealing in marketing their products through social
media. Aspects of social media like Facebook, Twitter and Instagram, play a major role in
advertising the products in a significant manner, as the target customers of beauty and cosmetics
products are teenagers and specially girls who majorly consume their time in using social media
which can help the companies in targeting these consumers by advertising through aspects of
social media.
As per most of the influencers, many of the young adults are facing a skin care issue
which they try to remedy by their own with the help of friend's advice or browsing, these issues
can be resolved by the use of cosmetics products, this can help the company in targeting the
customers through social media by considering all those teenagers who are facing these kind of
issues in the same (Lam, Yeung and Cheng, 2016). It is founded that more than 50% of
cosmetics are being consumed by teenagers ageing from 15 to 24 years, which shows that target
customers can be approached easily through social media with the help of influencer.
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In addition to this, it is also observed that the hypothesis of credibility of influencer creates the
positive impact upon the company and even the quality of feedback is also maintained such that
when the customer have any query then they put their question on the social media site in which
the influencer is endorsed (Lange and et.al., 2016). Therefore, at that time, influencer and
company revert on them so that it will help them to develop the connectivity between the
customers and the brand.
Feedback and reviews in cosmetic industry is very important. As per data analysis most
of the customers are gives positive answer about digitalisation because this influence to
customers towards brand and products. Cosmetic and beauty products uploads on social media
with superstars because influencers are great fully help to attract customers. This gave positive
impact on business and its growth factor. Customers post feedback on social media than manager
is track and replayed to customers and provide details and solve queries of customers. Social
media help to promote cosmetic product and services to customers in proper manner as well as
give positive impact on customer.
Product and services of company are non living things and this product and services are enough
to interact with people or customers. Product and brand need a face to perform promotion
through social media and digital technology. As per the collected data customer get attracted by
direct communication of company and influencers. As per Scherpen, Draghici and Niemann,
(2018) this is important for organization to use attractive and famous personality for the
marketing of company on the social media. People get attracted with personality and appearance
of famous influencer on the social media platform. Organization use different social media
platform to promote their beauty products. The respondents have stated that impact of
influencers is greater then the the social medial promotion in solo condition. Companies use
famous personalities to make direct communication with customers through social medial sites
like Facebook, Instagram and twitter to endorse. Through the advertisements companies can
make people aware about their products but this is not enough for company to influence
customers to buy their products. For better result in the global market company pick emerging
and well known personalities to make people to buy their beauty products.
13

As per Wong, (2019) Through digital promotion company is not able to make communication
with customer which is not that much effective for company. To make digital promotions more
effective they pay influencers and famous people to influence people to use products of
company, better consumer engagement can be achieved by this use social media along with
influencers. A lot people have accepted that with the feedback from brand ambassadors influence
them more the buy company product. The role of social media and influencers both are important
for organization to make positive impact on consumers. Use of social medial allows the company
to reach to large number of people with in short time. This thing help the organization to make
people aware huge group of people aware of company and their product. By including influencer
company improve their promotion campaign by influencing the people who likes and follows
famous personality that is used by company. This is how beauty product company creating
positive impact on customers.
CONCLUSION
From the above, it has been interpreted that there is a clear link or interaction between the
brand and customer and it is also concluded that if the firm uses social media platform through
blogger, then it also provide credibility in the influencer and also creates positive impact upon
the company as well. Lastly, through discussion it is also concluded that majority of people are
in favour that they follow influencer which helps the firm to have direct communication with
customer and brand.
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REFERENCES
Books and Journals
Jasman, A. O., 2018. The impact of social media marketing on purchase intention through
customer relationship at Wardah Cosmetics in Surabaya (Doctoral dissertation, Widya
Mandala Catholic University Surabaya).
Kim, Y. Y., Yang, H. C. and Kim, I. H., 2018. The Effect of Cosmetics Company’s CRM
Activities and Service Quality of Cosmetics Store on Customer Satisfaction and
Repurchase Intention. 2018. pp.281-282.
Lam, H. K., Yeung, A. C. and Cheng, T.E ., 2016. The impact of firms’ social media initiatives
on operational efficiency and innovativeness. Journal of Operations Management. 47.
pp.28-43.
Lange, D. B., and et.al., 2016. Social media impact assessment. U.S. Patent 9,294,576.
Scherpen, F., Draghici, A. and Niemann, J., 2018. Customer Experience Management to
Leverage Customer Loyalty in the Automotive Industry. Procedia-Social and Behavioral
Sciences. 238. pp.374-380.
Wong, K. Y., 2019. 1 E-commerce and international trade. Developing the Digital Economy in
ASEAN.
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