Case Study: Aura Nails

Future-Proofing Nail Art

Client: Aura Nails, a beauty tech company specializing in a proprietary, countertop digital nail art printer.

The Challenge: Aura Nails had a strong initial market entry with its flagship nail art printer, a device that allowed users to print complex, high-resolution designs directly onto fingernails. The hardware was innovative and a significant step up from traditional nail art. However, as the market matured, several key challenges emerged that threatened the company’s long-term viability:

1. Static Technology: The hardware-centric business model relied on a costly, one-time purchase. The technology was fixed and difficult to update, leaving the company vulnerable to competitors with more agile, app-based solutions.
2. Stagnant Revenue: The lack of a recurring revenue stream meant that once a customer purchased the printer, there was no consistent way to generate additional income from that user.
3. Lack of Personalization: The device offered a pre-loaded library of designs, but it lacked the personalization and dynamic content that consumers now expect from modern tech products.

Our Approach: Drawing on our on-the-ground discoveries from CES 2025, we identified three key market trends that Aura Nails was not leveraging: the rise of personalized AI, the explosion of subscription models, and the growing demand for interactive, user-generated content.

We initiated a strategic engagement to re-evaluate Aura Nails’ technology and business model. Our process involved:

• Technology Audit: We analyzed the existing hardware and software to determine its current capabilities and limitations.
• Competitor Analysis: We conducted a deep dive into the strategies of emerging beauty tech companies to understand the competitive landscape.
• CES Trend Application: We presented our report showing how trends in personalized AI, augmented reality (AR), and subscription services could be directly applied to the nail art industry.

The Solution: Based on our findings, we recommended a fundamental shift from a hardware company to a software and platform company. The strategic solution included:

1. AI-Powered Design Engine: We proposed integrating an AI engine into a new mobile application. This app would allow users to generate unique designs based on their preferences, a photo of their outfit, or even current social media trends, creating a truly personalized experience.
2. AR “Try-On” Feature: We advised on the development of an augmented reality feature within the app, allowing users to virtually “try on” a design on their own hand before committing to printing it, which would significantly enhance the user experience and reduce friction in the design selection process.
3. Subscription-Based Model: We helped Aura Nails transition from a one-time purchase model to a multi-tiered subscription service. This model offered a free tier with basic designs and a premium tier with unlimited access to new designs, exclusive artist collaborations, and advanced AI features, creating a sustainable, recurring revenue stream.
4. Hardware-Agnostic Platform: We guided them to rebuild their software to be hardware-agnostic, allowing them to partner with various printer manufacturers in the future and open new distribution channels.

The Results: By embracing these recommendations, Aura Nails successfully reinvented its business and future-proofed its technology.

• Increased Revenue: The new subscription model led to a 250% increase in monthly recurring revenue within the first year.
• Enhanced Customer Engagement: The personalized AI and AR features resulted in a 40% increase in average session time in the app.
• Strategic Partnerships: The new hardware-agnostic platform attracted interest from major hardware manufacturers, opening new doors for partnerships and market expansion.
• Positive Media Recognition: The innovative use of AI and AR earned Aura Nails positive coverage in leading tech and beauty publications, positioning them as an industry leader rather than just a product company.

Conclusion: By looking beyond the product and understanding the broader technological trends, we helped Aura Nails transform from a single-product company into a dynamic, future-proof platform with multiple revenue streams and a clear path for growth.