Beat the Odds
In 2020, there were 6% fewer beauty launches than the previous year. Understandable in a global pandemic, but there were still an incredible 24,000 new products, and in 2019 market share for new launches increased from 11.2% to 13.5%.
According to recent research by Harris Wiliams, 49% of consumers will spend more on beauty in 2022 than pre-covid, and 58% plan to spend more in 2023.
So, what separates the weak from the chaff? Here are four things new brands should be thinking about…
- CONVENIENCE IS KING
What is it about beauty that makes it so resilient and in demand? Affordable luxury? Yes, that’s always been true, but 2020’s limited bricks and mortar growth was through mass channels (+1%). This was particularly true for accessible grocery beauty. The growth was accelerated because of the Pandemic, but it highlights how critical convenience is in today’s consumer journey. It also explains Sephora’s recent move into Kohl’s and Ulta’s into Target. Make access a priority – digitally and physically.
- EASE OF DIGITAL NAVIGATION & MULTI-SENSORY EXPERIENCES
A desire for ease in an overwhelming beauty landscape is shaping a new need in digital too. Whether its AI, VR or NFTs, the layers of discovery need to consider simple navigation and connected exploratory experiences that help the consumer find what they’re looking for – and hopefully they learn a thing or two along the way. So, simplicity yes, but don’t forget about experience – something that can be lacking on beauty ecommerce channels. We are multi-sensory beings, content that enables brand immersion needs clever construction but can be incredibly powerful to aid engagement and confident choice.
- BEAUTY IS NO LONGER SKIN DEEP
Beauty has always been a very personal category – whether in suitability of product or in the emotional connection and confidence it can deliver. Today, a values fit is as important as a product fit. Beauty has shifted from self-aware to self-care. From customer to community. From marketing to purpose. From putting on a face for the world, to being good to me, good to the planet and good to others. It’s taking beauty into a new wellness space – not just about how you look, but how you feel. Commercially, it’s very exciting – connecting a fast growth category to a far bigger and even faster growing category.
- THE FOUNDATIONS FOR SCALE
It’s never been easier (or harder) to launch a beauty brand. DTC gives a solus platform and manufacturers are offering smaller production runs, BUT the costs of growing your online audience are huge, and the beauty landscape is cluttered and fiercely competitive. Having a reason for existence is a must, having an authentic story and values that connect is vital, but one area that is often overlooked is the importance of detailed planning and building strong foundations for growth. It might be boring, but it can be a major factor in success or failure. Be boring as well as visionary! And find the right partners…