The makeup industry is constantly evolving, driven by consumers’ pursuit of beauty and the innovative advancements of the times. In the new retail era, where products reign supreme and brands are on the rise, several trends have emerged that shape the future of the makeup industry. This article explores four key trends: new demands, new brands, new marketing, and new channels.
Introduction
The cosmetics industry continues to prosper and undergo brand transformation due to consumers’ ever-increasing desire for beauty. The growth trajectory of this industry has transitioned from relying solely on traditional demographic advantages and channel expansion to a new phase where products take center stage and brands are gaining prominence. In the new retail era, many makeup brands are actively building multi-brand matrices, exploring new omnichannel marketing channels, and focusing on color cosmetics brands that offer cost-effective products.
Trend 1: New Demands
The first trend revolves around the emergence of new demands from consumers, particularly the younger generation who seek safe, efficient, innovative, and colorful makeup products. There has been a significant shift where the supply side is now catering to the demands of consumers, as opposed to the other way around. This change can be attributed to two primary reasons.
2.1 Younger Generation’s Preferences
The consumption structure in the color cosmetics industry is increasingly influenced by the younger generation. Gen Z, in particular, is expected to contribute significantly to consumption, with estimates suggesting they will account for 69% of total consumption by 2021. The younger generation’s emphasis on personalization has pushed brands to develop custom products that align with consumer needs.
2.2 Emerging Consumer Demands
The supply of color cosmetics products has been expanding rapidly, leading to an increasingly diversified range of choices for consumers. In the age of the Internet, where information is abundant and fragmented, consumers are required to engage in targeted self-screening based on their specific preferences. This shift has transformed the consumer-brand relationship into one centered around fulfilling individual demands.
2.2.1 Ingredients
Consumers are now paying closer attention to the functionality, safety, and cost-effectiveness of cosmetics ingredients. This focus has led to the development and marketing of products featuring popular ingredients such as niacinamide, amino acids, and hyaluronic acid.
2.2.2 Interest
As the beauty consumer base becomes younger, interest has become a crucial factor influencing purchasing decisions. Unique and interesting product appearances and usage processes have proven effective in enhancing product selling points, improving consumer engagement, boosting sales, and increasing conversion rates.
2.2.3 High Face Value
Exquisite product packaging plays a vital role in the cosmetics industry, particularly in the realm of high-end cosmetics. Well-designed packaging has the ability to capture consumers’ attention, enhance brand appeal, and stimulate consumer desire to purchase.
Trend 2: New Brands
The second trend focuses on the emergence of new brands driven by cross-border influences and national trends. The rapid rise of personalized and diverse consumer demands has triggered significant transformations and reconstructions within the industry. In recent years, star brands and emerging brands have experienced exponential growth, primarily by catering to personalized consumption needs and leveraging the fragmented nature of channel traffic.
3.1 Cross-Border and National Trends
The rise of cross-border and national trends has paved the way for brands to establish stronger associations with consumers and deepen their brand identity. This trend has lowered the barriers for brand building, allowing brands to leverage personal IP and celebrity culture to create makeup products that resonate with their target audience. Social media operations have played a crucial role in accurately acquiring target customers, enhancing brand awareness, and fostering trust and cultural heritage.
3.2 Rise of Personal IP Brands
Makeup brands are increasingly integrating personal IP and celebrity culture into their product offerings. Through strategic social media marketing and operations, beauty brands can quickly accumulate a large fan base, generate interest, and enhance brand value.
3.3 Strong Breakthroughs by Emerging Brands
Emerging brands have experienced rapid market share growth by focusing on product personalization and rapid iterative innovation. According to Nielsen retail data, new products contributed to 67% of the overall sales growth in the personal care segment. These emerging brands have successfully tapped into the preferences of the younger generation and created differentiated products that resonate with their target consumers.
Trend 3: New Marketing
The third trend highlights the transformation of marketing strategies in the makeup industry. With the increasing fragmentation of beauty channel traffic, traditional centralized delivery models through TV media have witnessed declining conversion rates. As a result, new marketing models leveraging technology and new channels have emerged.
4.1 Content as Marketing
In the new era, content has become a powerful marketing tool. Makeup brands are leveraging the power of compelling content to engage consumers and build brand loyalty. By harnessing the potential of internet technologies and big data, brands can create accurate user portraits, understand core consumer needs, and tailor customized marketing strategies that increase conversion rates.
4.2 The Role of KOLs and Live Broadcasts
The rise of social media platforms such as Facebook, TikTok, and Instagram has given birth to a new marketing model driven by Key Opinion Leaders (KOLs) and live broadcasts. Internet celebrities and beauty bloggers hold significant sway over beauty consumers, leading trends, and influencing purchasing decisions. Through strategic collaborations with KOLs, makeup brands can quickly gain access to a large fan base, effectively promote products, and create popular consumer models.
Trend 4: New Channels
The fourth trend centers around the integration of multiple channels, with online and offline experiences converging. Online makeup channels have witnessed rapid growth, offering a wider range of choices and convenient shopping experiences for consumers. Simultaneously, offline channels still play a vital role in providing personalized experiences and services, utilizing new retail concepts and experiential consumption to thrive.
5.1 Omni-Channel Integration
Leading cosmetic companies are embracing omnichannel integration as the future standard. Consumers no longer seek a singular channel experience but instead desire the convenience of seamlessly integrated online and offline interactions. By leveraging big data and digitally transforming user information, makeup brands can better understand consumer preferences, facilitate customized marketing approaches, and increase conversion rates.
5.2 Breaking the Scene Boundary
The growth of online and offline integration is transforming the makeup industry by breaking the scene boundary. Online channels have experienced faster growth rates, supported by the introduction of e-commerce festivals and improved convenience. However, offline channels retain their significance in delivering experiential and service-oriented consumer experiences. Brands that successfully navigate the boundaries between online and offline, leverage new technologies, and integrate online and offline data will have a competitive edge in understanding consumer preferences and effectively promoting their products.
Conclusion
The future of the makeup industry will be shaped by several key trends. The industry will witness an increased focus on fulfilling the demands of the younger generation, with an emphasis on safe, innovative, and colorful makeup products. The rise of new brands will be driven by cross-border influences, personal IP integration, and collaborations with celebrities. Makeup marketing will be transformed by the power of content and the influence of KOLs and live broadcasts. Additionally, the integration of online and offline channels will become the norm, blurring the boundaries between marketing and channels.
As the industry continues to evolve, makeup brands must adapt and innovate to stay ahead of the curve. By embracing these trends and understanding the evolving consumer landscape, brands can position themselves for success in the dynamic and ever-changing makeup industry.
FAQs
Q1: How can makeup brands cater to the demands of the younger generation?
Makeup brands can cater to the demands of the younger generation by focusing on safe, efficient, innovative, and colorful makeup products. They should prioritize ingredients that offer functionality, safety, and cost-effectiveness, while also paying attention to product appearance and packaging.
Q2: What role do emerging brands play in the makeup industry?
Emerging brands are rising strongly in the makeup industry by catering to personalized consumption needs and leveraging rapid iterative innovation. They bring fresh perspectives and differentiated products that resonate with consumers, contributing to market growth.
Q3: How can makeup brands effectively leverage content marketing?
Makeup brands can effectively leverage content marketing by creating compelling and engaging content that resonates with their target audience. By utilizing digital technologies and big data, brands can understand their consumers’ preferences and tailor content that meets their needs, increasing brand loyalty and conversion rates.
Q4: How can makeup brands integrate online and offline channels?
Makeup brands can integrate online and offline channels by leveraging new retail concepts and experiential consumption. They should provide consumers with convenient online shopping experiences while still offering personalized services and experiences through physical stores.
Q5: What are the benefits of collaborating with KOLs and utilizing live broadcasts?
Collaborating with Key Opinion Leaders (KOLs) and utilizing live broadcasts allows makeup brands to tap into their large fan bases, increase brand awareness, and drive product sales. KOLs have significant influence over beauty consumers and can quickly generate interest and create popular consumer models.
