As self care and wellness become more important to consumers, the cosmetic industry is experiencing significant growth worldwide.
In fact, despite a brief setback in 2020 due to the COVID-19 pandemic, the global cosmetics market has shown consistent growth since 2004 and is projected to reach revenues of nearly $129 billion by 2028, according to online statistic company Statista.
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With this growth, however, comes intensified competition. To distinguish themselves in the competitive landscape, many brands are turning to partnerships with innovative technology firms to integrate advanced solutions that not only enhance the consumer experience but also improve operational efficiency.
One global beauty company responding to this competitive landscape is Avon International, which partnered with supply chain management company Blue Yonder earlier this month. The New York-based beauty empire implemented Blue Yonder’s Cognitive Demand Planning, Enterprise Supply Planning and Control Tower solutions to create an end-to-end next-generation supply chain while also supporting its vision and consumers.
“Avon International is committed to transforming itself to meet the needs of its customers, representatives and partners while staying true to its business model and values,” said Maciej Kaniowski, chief operating officer at Avon International. “Avon International recognized the need for a more integrated approach to demand planning to support this global transformation across all channels. After a thorough selection process, Blue Yonder was chosen for its comprehensive solutions and innovative capabilities that met all of Avon International’s needs.”
Working in tandem, all three of Blue Yonder’s solutions have been instrumental in Avon’s digital transformation. Through this partnership, Avon has integrated Blue Yonder’s flexible software-as-a-service, or SaaS, supply chain solutions across its operations spanning more than 40 countries in Europe and Asia Pacific. This initiative harnesses advanced artificial intelligence and machine-learning capabilities to streamline demand planning, enhance decision-making agility and adapt swiftly to market dynamics.
Blue Yonder’s AI solutions also allow Avon to develop forecasts incorporating causal variables such as campaigns, pricing, promotions, catalogue positioning and seasonality. These factors “are crucial” for accurate forecasting but are often challenging to manage with traditional time-series modeling, Tom Gregorchik, vice president of industry strategy at Blue Yonder, told WWD.