Shiseido shutters metaverse projects. What’s next for beauty and Web3?

The luxury sector of Web3 took another hit this week after Japanese cosmetics giant Shiseido confirmed the closure of its metaverse initiatives and the accompanying layoffs last month. Once considered a leader in Web3 innovation within the beauty industry, Shiseido has pioneered digital beauty experiences, NFTs, and metaverse collaborations. The company teamed up with Decentraland in 2022 and explored digital collectibles tied to premium brands like Clé de Peau Beauté. In 2023, Shiseido launched an NFT collection for its luxury skincare line Anessa, targeting younger consumers. It also unveiled its AI with Beauty campaign, which seamlessly blended AI-generated art with beauty NFTs. Meanwhile, its subsidiary NARS introduced NFT drops offering exclusive access to products and experiences. 2024 is set to be a critical chapter for Web3, with Shiseido’s exit underscoring industry challenges. Last year, digital fashion pioneer RTFKT shut down its operations, alongside many luxury brands quietly retiring their “chief metaverse officers.” Yet, not all is bleak for tech-driven beauty. Platforms like Roblox are thriving, enabling beauty brands to engage Gen Alpha shoppers with virtual experiences and product integrations. Meanwhile, L’Oréal Group continues to push the boundaries of beauty tech. At CES in Las Vegas last week, the company unveiled its Cell Bioprint tool — a “lab-on-a-chip” device designed to calculate skin age and predict responsiveness to ingredients. This biotech-driven innovation aims to educate consumers about aging processes, detect potential skin issues, and personalize skincare solutions. As brands scale back on hype-driven Web3 activations, the focus is shifting toward practical, results-oriented technologies that show tangible growth potential. This recalibration comes amid a broader industry trend of redirecting resources to innovations that deliver measurable benefits. Shiseido is among the brands pivoting to more grounded tech. Also at CES 2025, the brand unveiled the Skin Visualizer, a real-time analysis device capable of assessing skin radiance and resilience without requiring makeup removal or physical contact. Despite a slowdown in metaverse buzz, the beauty industry remains ripe for digital expansion, virtual try-ons, gaming activations, and AI-driven technologies continuing to hold promise. The trend is also evident in China, where consumers are demonstrating significant openness to AI-powered tools. Local brands are leading the charge: makeup label Yunifang is using AI to decode micro-expressions and recommend fragrances, while acne-focused skincare brand Beforteen is creating customized acne treatments based on algorithmic insights.

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Shiseido shutters metaverse projects. What’s next for beauty and Web3?