Online beauty bookings startup JOLYY is building a Blockchain-based platform, which will improve the way beauty salons manage their appointments.
The system is already operating as a scaled-down version, and now the company plans to build its next generation with the help of the blockchain. This will extend its capabilities beyond salons and to the wider market.
The beauty industry has been growing steadily in the past decades, recently enjoying a healthy boost from different online channels. As consumers shift their focus online, so does market demand.
The global beauty and personal care products market is expected to grow to $750 billion by 2024, a compound annual growth rate (CAGR) of 7.15% between 2016 and 2024, according to a report by “Inkwood Research”. The market size was $432.7 billion in 2016.
E-commerce, social media and different online channels are playing an increasingly important role in the industry’s growth. The current market however, is stifled by “lack of efficiency, high commissions and unreliability”, the company COO Ognian Genev says.
To a great extent, salon managers still rely on phone, pen, and paper to manage their bookings. This ineffectiveness leads to considerable financial losses and missed opportunities for all stakeholders.
JOLYY is aimed at addressing the bulk of these issues.
Upon launch, it will offer bookings free of charge. Later, the company plans to introduce a 1% commission, much below the industry standard of 20% or more.
Salon managers will have access to data about their rating on the platform. Detailed analytics will help them improve their listing and go up the search results.
A dedicated social network, integrated within the platform, called JOLYY Live, will allow them to post content, promote their business and interact directly with their clients. The company hopes to turn the social network into the go-to place for the beauty industry with users uploading and sharing content, following experts, finding deals, etc. Salons and vendors will be able to advertise their products.
The JOY token
They will receive secure and instant payments in the system through a native token called JOY.
The company plans to launch JOY, based on the Ethereum blockchain, which will act as the main payment method in the network. Ad space will also be available for sale in exchange for tokens. By attributing an advertising value to tokens, the company hopes to increase the intrinsic value of the currency, long-term. Tokens used for buying ad space will get burned, reducing the total supply.
Clients will be able to book their preferred salons 24/7, paying in JOY tokens or fiat money. In addition, they will receive tokens as rewards for their participation, e.g. writing reviews and comments, referring new customers and salons, etc. The social network module will enable them to interact with their favorite salons and experts, follow and ask questions, read relevant content, etc.
Cosmetic product manufacturers, in turn, will get access to a direct marketing channel through the so-called JOLYY Store component of the platform. They will reach thousands of salons, filtering their search by geography, type, and other criteria. Vendors will promote their products to beauty experts through precisely targeted ads. For any sale, they will arrange cosmetics deliveries through cashless payments and a smart contract, saving time and money, the company says.
The platform will be based on the Origin Protocol, which uses the Ethereum blockchain to help buyers and sellers transact in a decentralized environment without traditional intermediaries.
JOLYY was founded in 2016 and operates out of Bulgaria.
The JOY token is scheduled to be released in the second quarter of 2018.