One of the criticisms of emerging technology is that ROI is hard to find. Some believe that AI, machine learning and generative AI are suffering from the no-ROI syndrome today. Others feel the same way about blockchain and The Metaverse, among other technologies that have yet to hit their stride. (For the record, I do not subscribe to technology pessimism!)
Part of the problem with ROI requirements is timing. One never knows when a technology will break out. So companies (and their investors) make bets about the applied potential of individual and baskets of technologies. Sometimes the bets pay off; sometimes they don’t.
Another challenge is the application of the technology in new and creative ways. I tell my students they should think outside the box – well beyond what the market and current players are doing – or not doing. We also know that integration across technologies can be complicated and expensive. This is especially challenging when the application area is new or “creative” – as it is for OUTOFHAND.
But what happens when extraordinary technology meets a product area that’s growing with a business model that’s unique? What happens when “citizen creativity” is matched with world-class designers and celebrities?
What happens when all this converges on finger nail art, as it has for OUTOFHAND?
While nail art isn’t a new trend … the sector has experienced a creative renaissance over the last few years. Today’s customer requests range from “cat claw” nails to “pierced” manicures, with 3D designs also trending (“3D nails” searches on Pinterest are up 35% since June). And over the same period, press-on (artificial) nails are the number 2 most searched beauty category on Amazon.
OUTOFHAND’s Market Strategy
Who knew that the total size of the nail care market was over $25 billion in 2024 on its way to over $35B by 2032? Or that the artificial nail market will approach $3 billion by 2035? The nail art market is also a large, growing niche market with some of the highest margins in the space.
Fortune Business Insights validates OUTOFHAND’s market strategy:
“Nail art has become increasingly personalized and intricate. From floral designs and geometric patterns to abstract art and glitter galore, there is a wide range of artistic expressions that are trending across countries.
“The use of nail embellishments such as charms, crystals, and pearls has added a new dimension to nail art, creating a more dynamic and eye-catching look.
“Overall, the market showcases a blend of creativity, sustainability, and individuality, allowing individuals to express their unique style in exciting new ways.
“The rising availability of the product, nail art designs, and tutorials across these platforms by celebrities, influencers, and nail artists propel the market growth.”
OUTOFHAND could have written this market analysis. It describes market targets and trends beautifully. It accentuates the artistic aspects of the market as well as the role that celebrities and influencers play as the market disrupts itself. But it does not describe the technologies that enable the market trends which is where differentiation occurs.
OUTOFHAND’s Technology
OUTOFHAND is betting on computer vision, AI, augmented reality, 3D finger-tracking, among other technologies for the custom design of finger nails of all shapes, sizes and personal fashion. As the founder – Samuel Deutsch – says, “Nail art is the new sneakers.” Fortune Business Insights seems to agree. So does VentureBeat:
“The integration of AI and AR allows for an immersive experience where users can instantly explore virtual nail designs, bringing them to life with stunning realism and precision … OOH enables users to not only engage with virtual nail art, but also seamlessly order these luxury designs as custom-sized, 3D-printed nails.”
The company argues that its 3D precision in finger tracking technology is shaping the future for consumers wanting to wear accessories. Its AI-based finger tracking technology and processing engine interprets fine-grained movements of fingers including joint articulations, and extrapolates even when obscured from view. The company suggests that the pinpoint accuracy on both hands, in real time, is even beyond the current capabilities of Meta, Apple, Microsoft and Google. Clients can think about designs and make them come true from an app on their phones.
OUTOFHAND’s Market Twist
But as powerful as the technology is, there’s a twist to OUTOFHAND’s approach. It partners with top celebrity nail artists and tastemakers, which include Rihanna, BlackPink, Billie Eilish, Doja Cat, and Dua Lipa to name a few (who end up acting as both creators and advertisers for the platform), thereby enabling the company to scale early adopters quickly. This is the secret sauce. If OUTOFHAND can integrate technology, nail artists, celebrities and influencers, it can disrupt the entire nail art market.
Fashion on Demand
At the end of the day, OUTOFHAND is not just selling nail art. It’s selling personalized beauty to a growing number of individual “citizen designers” who want to build their own fashion brands through their own creations or through limited collections of celebrity nail artists. The company is now letting people in off the waitlist, and will launch shortly globally. Its parent company – Savant – is well-funded with an investment from SignalFire and General Catalyst. The marriage between art and technology will be consummated soon. Stay tuned for fashion, digitally redefined. Given market trends, ROI may be well within reach.
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