What: The beauty industry is beginning to find its place in web3 through experiential spaces and experimentation with virtual reality, DAOs, blockchain CRM and other community-building strategies.

Why it is important: Until recently, beauty brands relied on partnerships with esports and games to enter the metaverse, but now they are establishing their own virtual communities with growing sales.

According to a 2022 global survey by Accenture, 48% of respondents are interested in purchasing virtual makeup looks in the next 12 months, and 38% have already purchased virtual makeup. Some brands have released NFTs that grant access to physical products, while others have focused on virtual storefronts to connect and encourage shopping for physical products online or booking virtual consultations.

Brands are building on these experiential strategies to build communities in the metaverse and encourage connections through DAOs and Discord servers. Nyx Professional Makeup will release a whitepaper on its DAO later this month with the hopes that its transparency will encourage other beauty brands to reference it for their roadmaps.

Other applications of metaverse beauty include digital makeup for video calls, inclusive and fantastical beauty filters or beauty looks for avatars. Roblox’s head of fashion and beauty partnerships states that beauty plays a major role in identity and self-expression on the platform.

Virtual spaces are a key method of community engagement which can take place in stores or through experiences that promote the brands’ products. YSL is going beyond community-building and leveraging blockchain technology to directly message NFT holders about new offers and exclusive purchase opportunities.

Metaverse beauty expansion