Beiersdorf’s Routinely investment reinforces rising digital personalized skin care market
25 May 2021 --- Beiersdorf is investing an undisclosed sum in a new personalized skin care start-up via its Oscar&Paul Beiersdorf Venture Capital Unit, together with Belgian co-investor 9.5 Ventures.
“Personalization shaped up to be a significant trend in many industries. For Beiersdorf, it is essential to provide our consumers with an innovative offer in the field of skin care that has true added value to their skin care routine,” a Beiersdorf spokesperson tells NutritionInsight.
The start-up, Routinely, launched last week and focuses on a modular skin care ritual emphasizing the dynamic nature of the skin.
The move is in line with Beiersdorf’s commitment to digital, personalized skin care, as Routine uses real-time app measurements to provide tailored solutions.
Digital personalization
The products of the Routinely brand will be sold exclusively in D2C distribution via its online platform.
Routinely will initially launch in Belgium and the Netherlands, with other European countries to follow.
The investment in Routinely also reflects the potential the company sees in serving the increased online consumer demand – a trend that has been further reinforced by the COVID-19 pandemic, the company says.
The launch will initially be in Belgium and the Netherlands, with other European countries to follow.
“Personalization is one of the key levers for even closer consumer connectivity and, therefore, an integral part of our C.A.R.E.+ strategy in winning with skin care, now and in the future,” the spokesperson says.
In 2019, Beiersdorf set off a multi-year investment program called C.A.R.E.+, with €70 million (US$85 million) to 80 million (US$98 million) additional investments to boost the opening of new markets, innovations, digitalization and up-skilling of the workforce.
Rethinking the traditional
An initial online questionnaire and a complementary app help consumers match the perfect combination of a total of 13 unisex serums for their skin.
Through the consumer’s self-assessment supplemented by an advanced algorithm, the daily skin care routine is individually adjusted based on current measurement results in real-time via the app.
Apart from the consumers’ current skin care requirements, external factors such as humidity, temperature, air quality or solar radiation are also taken into account.
“We must reconsider the traditional, static way of thinking when it comes to skin care,” says Charlotte Van Loock, co-founder and CMO at Routinely.
“Our skin is a living, breathing organ that is influenced by a myriad of factors, such as eating habits, day-to-day environment, sleep patterns and hormonal balance. Generic products fail to cater to this individual specificity of our skin.”
The investment in Routinely also reflects the potential the company sees in serving the increased online consumer demand.
Focus on digital
The Routinely investment is part of a wide range of personalization activities at Beiersdorf under its C.A.R.E.+ strategy.
It illustrates the personalization of skin care at very different levels. This includes, for example, the AI-based web app NIVEA SKiN GUiDE, which uses selfies to analyze individual skin needs and to provide personal product and care recommendations, as well as the company’s first personalized face care brand O.W.N.
“To further enhance efforts in personalization, Beiersdorf not only relies on internal know-how and capabilities, but it also seeks promising strategic alliances and collaboration partners to jointly drive innovative concepts and ideas,” the spokesperson says.
“From the start, Beiersdorf believed in the concept of a personalized skin care routine. As a strategic partner and co-investor together with our partner 9.5 Ventures, we are looking forward to further building the future of personalized skin care and to helping a certain consumer group get the best skin care solutions.”
New business models
Ascan Voswinckel, head of Oscar&Paul Beiersdorf Venture Capital, sees the new investment as a further important step toward implementing the company’s C.A.R.E.+ strategy and the successful promotion of innovative business models.
Beiersdorf pursues different approaches and initiatives in the field of personalization. “Back in 2013, we launched MyNIVEA, which offered customized and freshly mixed products based on skin needs, day and night cream, to visitors at the NIVEA Spa,” the spokesperson notes.
Two years ago, the company started working with SKINLY which is an encompassing study on skin and individual skin needs.
“The announcement of our first personalized face care brand O.W.N back in February 2021 and the joint investment in a start-up specializing in personalized skin care routine are also a proof point of how we evaluate and realize new business potential,” the spokesperson concludes.
By Kristiana Lalou
