Authors: Assistant Professor Dr. Ekta Aggarwal
Abstract: This study examines how AI-driven personalization and influencer marketing affect brand equity in the beauty industry, comparing three Indian digital-first brands (Nykaa, Mamaearth, Sugar Cosmetics) with two global leaders (L'Oréal, Sephora) between 2019 and 2023. Using Keller's (1993) and Aaker's (1991) brand equity models, the study builds a composite Brand Equity Index covering awareness, association, perceived quality, and loyalty to assess the impact of AI tools and influencer strategies on consumer-brand relationships. The research uses secondary data from annual reports, industry benchmarks (Kantar BrandZ, Brand Finance, Euromonitor, McKinsey), and verified media, applying trend analysis, correlation analysis, and before-after comparisons. Results show that AI-driven personalization had a strong, positive effect on brand equity across all five companies, with an average correlation of 0.97 between AI investment and brand equity outcomes. Indian brands saw much larger gains (62.5–159.1%) than global brands (24.3–26.5%), suggesting higher returns at early stages of AI adoption. Influencer-led personalization worked especially well for building awareness and association among Indian brands, though it was less effective than comprehensive AI strategies for building perceived quality and loyalty. The study concludes that AI-driven personalization is a strong and lasting driver of brand equity, regardless of market maturity. It recommends full-journey personalization, AI-powered try-on tools, brand-owned virtual influencers, and localized AI strategies for Indian beauty brands. The findings add to existing research on AI in marketing and offer practical guidance for brand strategists working at the intersection of AI, influencer marketing, and brand equity.
