Business idea

Published: July 8, 2025

Valuation$15,000,000

Augmented Reality Makeup Try-On

SaaS

Essential metrics

3-Year valuation$15.0M

Social impact

Social

Health

Environment

Market$1.0B

MVP cost$200,000

Full version

Business Idea Concept.

The primary application of this AR technology is to enhance online cosmetic shopping by allowing customers to virtually try on makeup products, simulating how they would actually look through their smartphone cameras or uploaded photos in real-time.

This innovation helps customers confidently choose the right products, reducing return rates and boosting sales. Online beauty brands and retailers can seamlessly integrate this tool into their platforms to provide a personalized, engaging shopping experience and meet the growing demand for virtual try-ons.

Innovation at the Core.

The beauty e-commerce sector faces challenges with consumers hesitant to purchase makeup as they are unable to confidently choose shades online, leading to high return rates. Augmented Reality Makeup Try-On addresses this by providing a real-time virtual makeup try-on experience, utilizing advanced AI for accurate face tracking and realistic rendering. With the beauty tech market projected to grow significantly, this solution enhances shopper confidence, boosts sales, and aligns with evolving consumer preferences.

Learn more about the innovation

User Persona.

Digital Marketing Managers

User persona #1

Profile

Individuals overseeing online marketing strategies for beauty brands.

Need

To enhance customer engagement and increase online sales.

Challenge

Finding innovative tools to address customer concerns and improve online shopping experience.

IT Developers for Beauty Brands

User persona #2

Profile

Tech leads integrating new functions into retail apps or platforms.

Need

Reliable advanced technology to integrate AR features seamlessly.

Challenge

Sourcing highly customizable solutions that fit into existing systems.

Beauty Brand Product Managers

User persona #3

Profile

Professionals managing product offerings and feature roll-outs.

Need

Innovative features that provide competitive advantages.

Challenge

Aligning cutting-edge technologies with their brand portfolio.

Beauty E-commerce Shoppers

User persona #4

Profile

Active online buyers of makeup products.

Need

Confidence in selecting the right products online.

Challenge

Limited ability to test or visualize how products look on them.

Beauty Retail Consultants

User persona #5

Profile

Expert advisers for physical and e-commerce cosmetics businesses.

Need

Tools to recommend that boost client sales and reduce return rates.

Challenge

Providing proven solutions that drive tangible improvements.

Key Features.

Allows customers to see lipstick, eyeshadow, and other cosmetics applied to their live camera feed in an accurate and natural manner.

Utilizes AI to recommend makeup shades that complement individual skin tones, enhancing user trust in selections.

Accurately adjusts virtual makeup appearance under varying lighting conditions, ensuring realistic product presentation.

Available as an SDK/plugin for easy embedding into retailer websites and apps, driving seamless customer experiences.

Provides brands with analytics on try-on behavior and trends to tailor product offerings and marketing strategies.

Engages customers with an immersive and personalized shopping journey, boosting confidence and conversion rates.

Market Size.

TAM

$1 billion

SAM

$250 million

SOM

$50 million

MVP Cost Short
Breakdown.

Research & Development

Developing AR algorithms for virtual makeup rendering.

$60K–$80K

Component/Material Sourcing

Licensing software libraries and obtaining training data.

$30K–$50K

Design & Branding

UI/UX design for app interface and branding identity.

$15K–$30K

Initial Production / Build

Building prototype app and integration cases testing.

$40K–$70K

Testing & Certification

Validation of AR performance across device platforms.

$15K–$30K

Total

MVP ready for demonstration and pilot studies

$160K–$260K

Project Evaluation After 3 Years.

Projections are based on expected platform integration across multiple beauty brands.

$15.0M*

Projected valuation assuming successful market penetration and revenue scaling.

*These are rough estimates. For more precise calculations, generate a Business plan based on the chosen Business Idea.

Key cost drivers (variable by industry)

Proprietary technology adoption

Customer conversion increases

Revenue generated from SaaS

Partnerships with beauty retailers

Major Competitors.

This market features competitive players delivering AR-based virtual makeup experiences enhancing online shopping.

ModiFace

An AR and AI pioneer in beauty tech, acquired by L'Oréal, enabling advanced virtual try-ons for their extensive portfolio.

Perfect Corp.

Produces virtual makeup try-on and consultation tools, powering many major cosmetics brand apps.

YouCam Makeup

A popular consumer-facing app offering AR makeup try-ons and photo editing features.

Sephora Virtual Artist

This feature within Sephora's app integrates AR to enable customers to sample products visually.

Benefit Brow Try-On

Benefit Cosmetics provides an AR tool focusing on trying various eyebrow styles and looks.

Reasons to Choose This Idea

Allows users to visualize makeup results in real-time, aiding decision-making.

Already seeing growth, with this sector predicted to surpass $1 billion by mid-decade.

Retailers offering this tool can stand out in a crowded market.

Digital try-ons provide accurate product expectations for customers, reducing mismatches.

Employs advanced AI and AR for an unparalleled customer experience.

The concept addresses core challenges in the online cosmetics market, providing unique advantages.

Augmented Reality Makeup Try-On

Business Idea Concept.

Innovation at the Core.

User Persona.

Key Features.

Market Size.

Major Competitors.

Reasons to Choose This Idea

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