How AI and machine learning are key to personal care NPD launch success



In the personal care and luxury sectors, launching new products is often fraught with challenges. According to Kuznetsova one of the biggest hurdles is accurately predicting demand, especially when historical sales data is unavailable.

In a recent interview with CosmeticsDesign, Kuznetsova discussed the reasons behind new product launch failures, how artificial intelligence (AI) can revolutionize demand forecasting, and why personal care and luxury brands must embrace these technologies to succeed in today’s competitive market.

Common causes of beauty product launch failures

Kuznetsova emphasized that a significant reason for new product launches failing to meet expectations is inaccurate demand forecasting. “Without historical sales data, predicting demand accurately is challenging,” she explained.

Other common issues include market saturation, shifts in consumer preferences, and supply chain disruptions. “It is estimated that over 80% of new consumer product launches fail,” Kuznetsova noted, underscoring the need for more advanced tools like AI to mitigate these risks.

The difficulty in launching successful products is exacerbated in the personal care and luxury markets, where consumer tastes can be highly unpredictable and competition intense. “Leveraging modern AI tools to improve the odds is a great opportunity to protect the investments,” she said.

AI and machine learning: A game-changer for forecasting

Traditional forecasting methods, often based on historical sales data and subjective insights, are no longer adequate in an industry that demands precision and adaptability. “These dated approaches are problematic because they rely heavily on people with inside knowledge and may be subjective, manual, and time-consuming,” said Kuznetsova.



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