Hue’s $4.5m funding fuels expansion in beauty and personal care video marketing

This financing, co-led by Fika Ventures and Underscore VC, has positioned Hue to expand its presence in the cosmetics and personal care sectors by delivering authentic video content aimed at enhancing e-commerce conversion rates.

With the rising importance of digital engagement, Hue’s funding announcement is particularly relevant for manufacturers and suppliers in the beauty industry. We spoke to Janvi Shah, CEO and Co-founder of Hue, who shared that "this funding will propel our growth in beauty and wellness, as well as expand our reach into apparel, accessories, and footwear."

The company plans to allocate a substantial portion of the funds toward expanding its engineering and sales teams, which will further develop their video technology platform for brands and retailers.

Tackling conversion challenges with AI-powered personalization

Cosmetic brands today are under pressure to differentiate their products in an increasingly crowded digital marketplace. Hue’s platform directly addresses this challenge by providing AI-powered, user-generated video (UGV) content that personalizes the shopping experience and mirrors in-store interactions.

As Shah explained, "Hue’s AI-powered platform tackles low conversion rates by bringing authentic, user-generated videos into the online shopping experience, which is especially valuable for beauty brands." According to Shah, the platform tailors content to each consumer, showing “relatable videos that highlight real results and product benefits," ultimately resulting in up to a 25% increase in conversion rates and extended site engagement.

For brands in personal care, such as skin care and cosmetics, where consumers prioritize credibility, Hue’s platform offers a unique way to present authentic customer experiences, which in turn builds trust. By showcasing content from everyday users, Hue addresses the growing "authenticity gap" in digital marketing.

Success stories: Enhanced engagement for leading brands

Early adopters in the beauty space, including Laura Geller Beauty and Tatcha, have reported significant success with Hue’s platform, Shah confirmed. For example, Laura Geller Beauty experienced a 5.3% lift in conversion rates and a 2.6% boost in revenue per visitor after integrating Hue's shoppable videos.

According to Gladys Castro-Rezabek, VP of eCommerce at Laura Geller in a company press release, “Hue has helped our brand increase our average order value, especially through our product bundles. Through an A/B test, we were able to see a significant lift in conversion and sales, and based on the results, we’re now expanding Hue's solution."

Skin care brand Tatcha has also benefited from Hue’s technology, with plans to expand Hue's video solution across their website. “Integrating Hue’s Video Technology has proven to enhance the client experience for Tatcha,” said Andrea Carver, Tatcha’s SVP of DTC and Technology in a company press statement.

“Through an A/B test, we were able to see a substantial lift in conversion and sales," she shared, adding that "the customer journey has improved, and we will continue to integrate Hue’s Video Technology to more touchpoints on the Tatcha website to support product discovery and education.”

Key metrics for evaluating success in UGV integration

For beauty brands looking to gauge the impact of user-generated video content, Shah emphasized focusing on metrics like conversion rate increases, engagement time, and ROI from video-driven sales. “Tracking individual video and creator performance metrics is essential,” Shah explained, “as it allows brands to identify top-performing creators and optimize video placement to maximize engagement and conversion.”

Furthermore, Hue’s personalized approach allows brands to address specific audience segments effectively. By matching content creators to customer demographics, such as age or skin type, the platform enhances relevance, driving deeper connections with target customers.

This is particularly beneficial for brands that cater to specific demographics, like Laura Geller Beauty, which used Hue to reach women over 40 by collaborating with creators who authentically represent this age group.

Industry trends: Meeting demand for authenticity and personalization

As the beauty and personal care sectors become more competitive, trends such as authenticity and personalized marketing have risen to the forefront. As Shah observed, "consumers, especially Gen Z, increasingly want to hear from real people rather than influencers, seeking genuine experiences that reflect their own identities and needs."

Hue enables brands to integrate this authenticity into their content, delivering relatable stories that build trust.

Hue’s AI also enhances product discovery and education by matching customers with creators who share similar beauty concerns, such as skin type or tone. Shah noted, “By tailoring video content to individual shopper preferences, Hue creates a more relevant and engaging shopping experience, which is especially valuable in beauty where personal needs vary widely.”

Long-term, this approach fosters customer loyalty by improving product satisfaction and reducing return rates.

Supporting clean beauty with transparent UGV

Clean beauty brands, which prioritize transparency and ethical practices, also stand to gain from Hue’s platform. By featuring user-generated content that highlights ingredients and sustainable packaging, Hue supports the clean beauty movement’s emphasis on integrity.

For instance, SOSHE Beauty used Hue’s platform to showcase its refillable packaging, a message that resonates with eco-conscious consumers. This approach aligns with clean beauty values, reinforcing Hue’s ability to help brands in the sector connect with consumers’ ethical preferences.

Hue’s recent funding is noteworthy for cosmetics and personal care brands seeking to thrive in a digital-first world where authenticity is paramount. With Hue’s AI-powered platform driving engagement and improving conversion rates through user-generated video content, beauty brands are now equipped to meet the evolving expectations of today’s online shoppers.

Reflecting on the potential impact of Hue’s technology, CEO Janvi Shah concluded that “as eCommerce evolves, we’re excited to support brands in delivering genuine, personalized experiences that resonate with consumers. Hue empowers brands to bridge the authenticity gap and foster stronger connections with their audiences.”