What to expect from the holiday season: Upticks in Ai performance, skincare sales and AOV

by | Nov 13, 2024

According to a new report from personalised AI & AR Beauty platform, Revieve, there is set to be a 60% increase in average order value (AOV) and over 70% increase in engagement across the holiday season

In its new report, 2024 Holiday Beauty Playbook, Revieve presents data-driven insights that point towards beauty’s upcoming success over the coming months. 

Highlighting unique performance across skincare, luxury and planet-friendly beauty, here are our key takeaways: 

Try-on tech goes high-end:

Average performance across Q4 since 2021 shows that 75% of virtual try-ons in the period were for high-end products, highlighting the willingness of holiday shoppers to invest in premium beauty. 

This points towards a growing interest in limited-edition luxury bundles or exclusive holiday sets for gifting and self-indulgence.

Skincare sets the bar high: 

According to the report, skincare engagement surged to +90% in Q4 of 2023, showing clear appetite for the barrier-protecting, hydrating, skincare products for gifting. What’s more, 60% of consumers made non-routine purchases in the period, which points towards an increased consumer willingness to test and try new things throughout the period. 

Unsurprisingly, UK consumers continue to show increased interest in ‘eco-friendly’ options, with 33% of shoppers opting for cruelty-free products and 30% opting for organic options. 

All I want from Christmas is… Ai shopping: 

Speaking exclusively to the British Beauty Council, CEO of Revieve, Sampo Parkkinen, said: ‘Engagement in Ai beauty tech saw a dramatic surge in Q4 2024, where engagement consistently exceeded millions, marking a more than 50% increase compared to the Q1-Q3 2024 average. The Q4 spike was driven by high activity during major holiday promotions and campaigns, solidifying it as the peak period for user engagement.’ 

This engagement undoubtedly fed into the consumer’s increased intent to splurge over the festive period. According to Parkkinen: ‘Compared to Q3 2023, the add-to-cart rate rose by 32.1%, with “add all to cart” actions spiking by 45%. These increases reflect consumer behaviours typical of the holiday season, such as bulk purchases and higher shopping intent for gift-giving.’ 

But, is this all down to festive shopping behaviours? 

Sure, we know the holiday season is a peak time for beauty, with various shopping moments and traditional gifting habits. But is this spike in AI engagement really down to solely festivities? 

‘The surge in engagement and spending during Q4 is a testament to both the growing interest in AI-driven beauty experiences and the impact of the festive season. Overall, the engagement increases quarter over quarter, which indicates the steadily growing interest in personalization and adaptation of technologies, like AI/AR,’ starts Sampo.

‘The pattern is clear: Q4 consistently drives the highest levels of engagement, conversion, and spending. This growth is amplified by the adoption of AI beauty solutions, as seen with AOV increases of 63.2% for selfie-based users and 34.7% for non-selfie users in Q4 2023. These insights underscore the importance of the festive season as a peak period for both consumer activity and business performance.’ 

You can read the report here.

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