The continued prosperity and brand transformation of the cosmetics industry are driven by consumers’ constant pursuit of beauty. In the process of innovation of the times, the growth momentum of the cosmetics industry has developed from the traditional demographic dividend and channel sinking to a new stage where products are king and brands are rising. In the new retail era, many brands are actively building a multi-brand matrix, deploying new omnichannel marketing channels, and highlighting color cosmetics brands with cost-effective products.
This article focuses on five new trends in the development of the makeup industry in the new retail era: “new demands, new markets, new brands, new marketing, and new channels”.
【Trend 1】 New Demands: The younger generation of consumers pays more attention to safe, efficient, innovative, and colorful makeup products.
An obvious new consumption trend in the color cosmetics industry is that the supply side dominates the demand side, and now the demand side feeds the supply side. There are two reasons for this change.
1) From the demand side, the consumption structure tends to be younger. According to a study published by the Boston Consulting Group, Gen Z is expected to contribute 69% of consumption by 2021. Gen Z’s quest for personalization is forcing brands to develop custom products around consumer needs.
(2) From the perspective of supply, the supply of products in the color cosmetics industry continues to grow rapidly, and consumers’ consumption choices are increasingly diversified. The huge and fragmented information coverage in the Internet age requires consumers to conduct targeted self-screening according to their own conditions, generate personalized consumption needs around their own needs, and gradually transform the consumption relationship into a consumption relationship centered on consumer demand.
We have sorted out several emerging consumer demands in the color cosmetics industry at this stage.
Ingredients: Focus on the functionality, safety, and cost-effectiveness of the ingredients behind cosmetics, driving product development, and marketing with popular ingredients such as niacinamide, amino acids, and hyaluronic acid.
Interest: As beauty consumers get younger, interest has gradually become one of the factors influencing purchasing decisions. Interesting product appearance and use process can effectively improve product selling points and consumer memory, promote sales and improve conversion rates, such as Proya’s Black Sea Salt Bubble Mask and other popular products.
High face value: Exquisite product packaging is an important part of cosmetics, especially in the trend of high-end cosmetics. High-value product packaging and design can effectively grab the attention of consumers and enhance the brand tone of cosmetics and consumers. The desire to buy, such as the previous makeup of the Forbidden City and so on.
【Trend 2】 New brands: Cross-border and national trends drive brand transformation and reform, and emerging brands are rising strongly.
The emergence of personalized and diversified consumer demands has continuously triggered brand changes and reconstructions. In recent years, star brands and emerging brands have risen rapidly. Its essence is to comply with the trend of personalized consumption needs and fragmentation of channel traffic.
The emergence of these trends, on the one hand, provides a new model for brands to establish associations with consumers and deepen their memory, lowering the threshold for brand building; on the other hand, the emergence of new elements also brings brand loyalty and brand loyalty. to challenge. Therefore, catering to the personalized consumption characteristics of the younger generation, creating differentiated products that consumers like, and cross-border cooperation has become important strategy for building beauty brands at this stage.
Helping the rise of personal IP brands: make-up products that integrate personal IP and celebrity culture. With the help of social media operations, beauty brands can accurately acquire target customers and enhance brand awareness. Trust and cultural heritage, enhance brand premium.
Emerging brands make strong breakthroughs: Emerging brands have achieved rapid market share growth through product personalization and rapid iterative innovation. According to Nielsen retail data, new products contributed to 67% of personal care sales growth.
【Trend 3】 New marketing: Content is marketing, and new models such as KOL and live broadcasts bring marketing changes.
With the continuous improvement of the fragmentation of beauty channel traffic, the conversion efficiency of the traditional TV media centralized delivery model has continued to decline, and new marketing models based on new technologies and new channels have emerged rapidly.
New technologies: Internet big data, artificial intelligence, etc., help consumers draw portraits and accurately locate target customers.
With the rise of new technologies such as big data, make-up brands can digitally transform information such as user portraits and inventory to form brand digital assets. In the marketing process, by opening up online and offline omnichannel user data and applying digital technology, we can effectively build accurate user portraits, and help brands answer who the target customer group is, what their core needs are, and how to do it. Reach core consumption, form customized marketing, and increase conversion rate.
New Model: Live Streaming Emerges, KOLs Help Efficient Transformation
In the beauty industry, with the help of Facebook, Tik Tok, Instagram, and other platform tools, opinion leaders such as Internet celebrities and beauty bloggers continue to gain traffic, lead the trend of beauty consumption, and build a new marketing model industry for beauty. The significance of KOL marketing is that through the marketing of opinion leaders, it can quickly realize the flow of fans in a short period of time, bring goods, and create popular models.
【Trend 4】New channels: Omni-channel integration is the general trend, and the boundaries between marketing and channels are gradually blurring.
Breaking the scene boundary: Online and offline integration has become a major trend.
On the one hand, the growth rate of online makeup channels is much faster than offline channels. Online cosmetics channels cover a wider range, providing consumers with a convenient shopping experience. The launch of the e-commerce festival has also contributed to the rapid rise of online channels. Provide assistance; on the other hand, offline channels still have important experience and service attributes and are expected to rely on new retail and experiential consumption to break through.
In the future, omnichannel integration will become the standard for leading cosmetic companies. Reasons: 1) From the demand side, consumers are no longer satisfied with the consumption experience of a single channel, and need to integrate convenient online and offline scene experiences to improve the shopping experience; 2) From the brand side, based on new technologies such as big data, online shopping The digitization and integration of online and offline user data will help brands understand consumers’ preferences in an all-round way and better promote and convert them.
Breaking down channel boundaries: The lines between marketing and channels are blurring.
With the rise of social e-commerce, KOL placement, and other models, the boundaries between channels and marketing are becoming more and more blurred, and consumers’ purchasing decision-making chain is also shortening. Marketing strategies and channel structures in the industry are being restructured around traffic.