Demand fluctuations in a competitive skincare and cosmetics market

Businesses grow with increasing product demand. The skincare and cosmetics market across the globe is highly competitive. New product launches, innovations, changing trends, and evolving customer preferences are the factors that influence a company’s success in the market.

Distributors have more than just selling products. Being brand advocates, they have to uphold brand values in selling and building strong customer relationships. Accuracy and timing matter most when it comes to launching a new product, strategy, technological innovation, or establishing a new market.

A global skincare MLM company, one of our clients in Europe, had its markets established inside and outside of Europe. Operating with an international distributor-customer network had its own share of complications. Every region and its market were different in demand and customer preferences. The company faced serious concerns with unpredictable demand forecasting and irregular order cycles. Overstocking led to wastage of beauty products with shorter shelf life and stockouts disappointed distributors and customers. Absence of an analytics system devoid the distributors of data-driven insights and ad hoc sales goals resulted in unrealized targets and stagnant business growth.

The skincare and cosmetics MLM company approached us for a solution that could predict sales trends, optimize inventory planning, and create personalized sales goals for distributors depending on their capacities. Together with stable business growth, they intended to bring distributor engagement and customer loyalty to the forefront of their business strategy.

Demand fluctuations in skincare market

AI-driven sales forecasting features for skincare and cosmetics MLM

The AI experts at Epixel MLM Software had a challenging task at hand. The result was a tailored MLM platform with AI-driven analytics that could predict future sales demands, revenue, and distributor performance.

AI-powered sales forecasting

The Sales AI system analyzes past business data to identify seasonal purchase patterns, distributor performance, and customer preferences. It then processes the data into actionable insights visually represented on a sales dashboard. The system uses advanced machine learning and statistical algorithms like Recurrent Neural Networks (RNNs) including Long Short Term Memory (LSTM), ARIMA models, and exponential smoothing for time series forecasting.

After assessing the performance of each distributor, the system assigns personalized sales goals and notifies the admin of any support needs. An increase in demand surges and sales slowdowns was conveyed to the business in real-time to assist with timely decisions on product launches, promotions, and restocking.

Automated inventory management

The issues related to overstocking and stockouts were cleared with automated inventory insights that alerted the team when there is a surge in demand for a particular product or if the demand runs low. Stock levels were maintained based on predictive demand to reduce product wastage and to fulfill distributor and customer orders on time.

Inventory forecasts were tied to procurement and production schedules to create a coordinated flow between demand prediction and supply readiness.

Personalized distributor dashboards

A role-based dashboard with customizable metrics including commissions earned or withdrawn, sales goal progress, team performance, and training status clearly indicated. Admins, top leaders, and uplines have access to team performance data to identify training and support needs.

AI-powered customer recommendations

The MLM platform has an integrated Customer AI module that manages the whole customer lifecycle from conversion to long-term retention. The system offers personalized product recommendations and upselling, cross-selling suggestions to increase average order value. Distributors can take insights from the system to guide their customers through their purchase journey. It also notifies distributors of any customer support needs that may arise during product selection, purchase, or after sales.

Mobile portal for distributors

Distributors can track and manage their sales, customers, and earnings with an exclusive mobile app. They can also update orders and inventory to ensure that their customers receive their products right on time. The push notifications alerts distributors to low stock, order follow-ups, and sales insights to improve engagement and performance.

Distributors can also manage their downline teams, offer support, and training while on the go. The mobile portal can be accessed from all iOS and Android devices.

Automated commission management

Sales targets developed through forecasts offer distributors predictable earning potential. For the company, this helped in building commission budgets in advance. Data-backed sales goals reduced disputes related to expected vs. actual performance. Distributors now know what they would achieve and how much they could earn. The automated commission management system ensures accurate, on-time payouts based on the organization’s pay cycle.

AI-driven sales forecasting features

Results of managing sales with AI predictions

The AI-driven sales forecasting system improved various business aspects including distributor performance, customer support, and finances.

Revenue predictability: Sales predictions gave distributors and the company an accurate forecast of earnings and revenue with a good improvement in order fulfillment rates. Accurate demand predictions reduced wastage by an expected 40%, and order fulfillment rates were forecasted to increase by 65%.

Distributor retention: Data-driven sales goals and complete earnings visibility boosted distributor confidence and the retention rates saw an estimated increase of 55% in the first year.

Sales growth: AI-powered recommendations boosted upselling and cross-selling with a view to increase AOV by 35%. Accurate seasonal and market predictions helped the company strategize product launches and the order volume was estimated to reach a 38% increase.

Repeat purchases: Personalized product recommendations and support strengthened customer loyalty and resulted in an approximate increase of 50% in repeat orders.

Operational improvements: Automated inventory and commission management were anticipated to reduce administrative costs by 45%.

Network expansion: Data-backed recruitment strategies powered by AI insights accelerated distributor onboarding by an estimated 60% without compromising on training and compliance.

Managing sales with AI predictions

Challenges in implementing AI in sales

Implementing our AI solution in the business required a careful approach that avoided any kind of disruption to operations, distributor performance, and sales. Ensuring data accuracy with change-related challenges was a critical task. Epixel Software Implementation team achieved that with proper planning and expertise.

Distributor concerns

Many distributors were reluctant to rely on AI insights for fear of losing sales. We addressed this with built-in training programs where real-life scenarios helped them understand the practical side of forecasts and improved their confidence in the system.

Ensuring data accuracy

Accurate forecasting depends on clean and structured data. The legacy data management systems of the company fragmented data across multiple systems. We had to create a secure data migration plan and cleansing methods to ensure the data quality stays high for AI predictions.

Growth in a global market

When the global network of distributors expanded, the platform had to handle different compensation structures, pay cycles, and payment methods. Cloud scalability ensured that the performance was smooth even during peak product launch seasons.

Expected Results


Improvement in order fulfillment rates

Improvement in order fulfillment rates

65%

Reduction in product wastage

Reduction in product wastage

40%

Distributor retention increase

Distributor retention increase

55%

Increase in order volume

Increase in order volume

38%

Growth in average order value

Growth in average order value

35%

Increase in repeat purchase rate

Increase in repeat purchase rate

50%

Reduction in administrative overhead

Reduction in administrative overhead

45%

Faster distributor onboarding

Faster distributor onboarding

60%

Guaranteed uptime for global teams

Guaranteed uptime for global teams

99.9%

Improvement in order fulfillment rates

Improvement in order fulfillment rates

65%

Reduction in product wastage

Reduction in product wastage

40%

Distributor retention increase

Distributor retention increase

55%

Increase in order volume

Increase in order volume

38%

Growth in average order value

Growth in average order value

35%

Increase in repeat purchase rate

Increase in repeat purchase rate

50%

Reduction in administrative overhead

Reduction in administrative overhead

45%

Faster distributor onboarding

Faster distributor onboarding

60%

Guaranteed uptime for global teams

Guaranteed uptime for global teams

99.9%

Boost product demand and distributor performance with AI-driven MLM software

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