Driving health and beauty innovation in Malaysia

Delighting shoppers with an AI assistant  

AI is increasingly being used in stores to both drive operational efficiency and enhance the shopper experience. Aeon Wellness is another of its more recent adopters, through its Wello AI, a virtual shopper assistant. 

Shoppers in store can seek help from the digital screen at the AI booth to get assistance on tasks such as getting personalised recommendations, finding out more information about a product, or getting the best deals.  

This AI shopping assistant is expected to complement store staff in supporting shoppers through their shopping journey, and delight them.  

Providing AI-powered skin health test 

Retailers like DFI’s health and beauty banner Guardian have been incorporating technology to add experiential elements in store, such as an AI-powered skin health test. 

An AI-powered scanning device is used to scan the face of the shopper. It detects tracks areas such as pores, acne, skin moisture and more. 

The results are then presented in the form of a detailed report downloadable by email or QR code. The test results are benchmarked against the shopper’s gender and age group to allow for like for like comparison.  

Each shopper is then given a recommended list of products in store that they can purchase in store, customised to the unique needs of their skin condition. The retailer aims to drive greater conversions and spending store through this. 

Storytelling about independent suppliers 

A novel concept by Guardian is the evoking of storytelling to promote some of its local independent suppliers and their products.  

It has a display at its front of store showcasing the stories of some of its local independent suppliers, together with more details about their respective beauty and personal care products.  

Storytelling helps shoppers to build an emotive connection with the products they are purchasing, beyond just a transaction. The supporting local theme will also help to increase purchases of these products.  

Growing K-beauty assortment 

Korean beauty, or K-beauty in short, is growing in popularity across Asia, including Malaysia. This is driven by the booming influence of K-pop, K-drama and Korean culture in general, especially among gen Z shoppers.  

Watsons takes advantage of this trend with its K-beauty hero category at the front of store. It carries a range of Korean beauty products, together with other products going viral on social media. 

Having the K-beauty section at the front of store helps to drive footfall and spending among younger shoppers.

Appealing to new shopper missions 

A development among Malaysian retailers is having more missions-focused zones to ensure the specific needs of shoppers are met.  

Guardian has a new ‘Women’s wellness’ section that supports midlife wellness for middle aged female shoppers. It carries a range of menopause-friendly products. 

The retailer also has a men’s zone that meets men’s grooming needs. The zone is well organised and clearly labelled, providing step-by-step instructions for men on their personal grooming products from head to toe. 

What can we learn from health and beauty innovation in Malaysia?

Experiential shopping has always been important for the Malaysia health and beauty market. These examples show how retailers differentiate through technology like AI, range differentiation and a greater missions focus. 

Personalisation is becoming increasingly crucial to attract health and beauty shoppers, so retailers best able to offer a curated shopping experience will be able to stand out from the competition.