Sales growth is and will continue to be driven by changing demographics, new formats, formulations, dynamic distribution channels and technologies, as well as an innovative approach to the customer. Here are 5 key trends that matter to beauty marketers in 2018!
Until recently, a handful of corporations dominated the cosmetics industry. Brands such as Revlon, Cover Girl, L'Oréal and Estee Lauder were industry leaders and set trends. Today, the roles have reversed. Only 18% of companies in the cosmetics industry are established brands, while 82% are small, medium-sized and newly emerging brands.
1. Naturally and organically
Naturally and organically — the customer's requirement
Currently, 6 out of 10 women actively look for ways to care for their skin naturally and ecologically, and seek products free of parabens, phthalates, formaldehyde and other potentially harmful chemicals. Honesty is one of the most important issues facing beauty marketers. Consumers want brands to disclose what the products they use every day contain. More and more people are looking for detailed information about the origin, testing and production of cosmetics. Moreover, they demand insight into the brand's ethos and origins. Customers want to feel that the brands they buy reflect their values and that the products they choose align with their worldview. 2018 is a step toward veganism. Manufacturers are increasingly opting for vegan, non-toxic, allergen-free products that have a positive impact on the environment.
2. Individual choice of beauty
Individual choice of beauty
Consumers express themselves bluntly through social media, which has resulted in the emergence of a new, more inclusive beauty community. Independent cosmetics brands were the first to capitalize on this by creating user-generated content on social platforms. Independent brands are winning customers because they treat them as individuals, not just as a demographic, generation or gender. Consumers continue to express their individuality, which is why they are drawn to independent brands offering fresh perspectives and unique benefits that large companies cannot provide them — a broader range of products tailored to different skin tones, body types, genders, ages and sizes.
3. Experience comes first
Experience comes first
Sephora continues to stand out as a retail leader thanks to industry-best digital tools that enable the use of beauty advisor services to tailor products for shoppers. Other brands are not far behind. NYX Professional Makeup and Samsung have introduced innovative makeup tutorials using virtual reality. Newcomer Riley Rose, a spin-off of the fast-growing Forever 21 brand, wants to challenge Sephora by giving customers the ability to order products via Instagram. These innovations will help increase sales, but before consumers get used to new technologies in stores, retailers will still need to increase the value of retail purchases.
4. A new generation discovers beauty
A new generation discovers beauty
In line with the natural beauty trend, consumers are increasingly interested in cultural beauty traditions and draw on ancient wisdom — for example, crystal-infused products inspired by Ayurveda. It turns out that Generation Y and Generation Z are actively interested in learning about ancient beauty and health practices from other countries.
For now, the Korean skincare trend is mainly dominant, but interest in products and skincare techniques from, among others, Australia, Japan and Africa is growing rapidly, where ancient care rituals are infused with spirituality that intrigues the new generation of consumers.
Over the past decade, the growth of social media has contributed to a major shift, giving women and men the opportunity to question outdated standards in approaches to beauty. Consumers have changed the conversation about beauty, making it more personal and redefining what it means to be beautiful.
5. Social influence on consumers
YouTube, Instagram and other social media channels are increasingly important for women when deciding which cosmetic products to buy. Among all cosmetics buyers, 39% agree that social influence matters during purchases. Among heavy buyers who purchase more than 10 recommended products per year, as many as 58% say that social messages influence their purchase decision.
The pressure that social media exerts on beauty cannot be overlooked by marketers — it will continue to grow as more consumers shop directly on social platforms. In 2018, beyond social digital technology, beauty will become even more personal. The commercial use of biometric data will evolve and enable brands to create highly personalized products or provide individual feedback to the user. It is worth tracking and implementing into your strategy technologies that continue to strive to integrate electronics with the consumer as effectively as possible.
Summary
While 82% of the cosmetics market today belongs to independent players, established corporations must catch up with the new reality. The key trends of 2018 are naturalness and transparency of ingredients, inclusivity toward diverse consumers, and the development of technologies that enrich the shopping experience — from virtual makeup guides from NYX and Samsung to sales via Instagram at Riley Rose.
Importantly, the influence of social media determines 58% of purchases among the most active female customers, and older skincare traditions, such as Korean ones, inspire Generation Y and Z to discover ancient rituals.
