How Can AI-Driven Product Personalization Transform female Gen Z Brand Perception and Engagement in Luxury Cosmetics? A Qualitative Approach based on Focus Group in Brussels and Walloon Brabant

(2025)

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Abstract
As the luxury cosmetics industry increasingly embraces digital innovation, artificial intelligence (AI) has emerged as a key enabler of product personalization and customer engagement. This thesis explores how AI-driven customization can transform female Generation Z (Gen Z) consumers’ perception of and emotional connection with luxury beauty brands. Personalization technologies such as virtual try-ons and AI shade-matching tools are gaining traction, therefore, this study focuses on the evolution from passive, brand-led personalization to active, user-driven customization, where consumers co-create products that reflect their individual identity, needs, and values. A qualitative methodology was adopted, consisting of six focus groups with Gen Z women from Brussels and Walloon Brabant. Thematic analysis revealed five key themes, including a strong preference for natural complexion, expectations for highly customizable complexion products, and mistrust of digital-only tools used at home. Participants expressed a clear desire for hybrid models that combine AI precision with human expertise in retail settings. Trust, transparency, and ethical data use emerged as critical to engagement, along with sustainability and co-creation. Findings confirm that Gen Z seek more than functionality in AI tools, they expect emotional resonance, ethical alignment, and participation. Customization is not just a marketing feature but a symbolic act of inclusion and identity. The study concludes that AI must be embedded into human-centered, omnichannel journeys to generate lasting brand loyalty among Gen Z consumers.