Weekly Newsletter - 25.07.2024

Stay ahead in the beauty game with the latest AI innovations, top e-commerce trends, and how to build long term brand value.

Author

Beauty Broadcaster
July 25, 2024 • Estimated Reading Time: 6 minutes

THE LATEST IN BEAUTY AND COSMETICS

As beauty brand CMOs start to bask in summer's glow, the looming shadow of Black Friday and Cyber Monday (BFCM) already demands attention. But don’t focus solely on conversion: there are suspiring opportunities in upper-funnel activities during BCFM, contributing to better overall ROAS due to lower competition.

Fospha's analysis of $27 million in BFCM ad spend reveals Meta and TikTok emerged as hero channels, with consideration-stage marketing playing a crucial role. Meanwhile, Fenty Beauty's social media mastery shows how to build year-round engagement beyond sales events.

🔑 The key? Balancing irresistible BFCM offers with consistent brand-building activities. As you plan your BFCM strategy, remember: the customer journey is more complex than ever.

Discover how to avoid the BFCM sprint burnout and win the long-term beauty brand marathon. Read in-depth strategies for measuring your full-funnel performance and building lasting brand value in our latest article.

According to Shopify, the beauty and cosmetics industry is set to see online sales reach nearly $88 billion in 2024. Online shopping will account for 19.2% of total beauty and personal care revenue, with e-retail giant Amazon's health and personal care sales making up 34.7% of its ecommerce sales. Importantly, 71% of U.S. beauty shoppers will use a specialty beauty retailer’s website when researching new products.

Key trends Shopify have identified include personalized beauty offerings, AI innovations, loyalty programs, AR & VR try-on filters, authentic influencers, brand communities, social commerce, omnichannel shopping, beauty subscription boxes, and sustainability.

Personalization is crucial, with 56% of consumers likely to become repeat customers after a personalized experience. AI helps in creating personalized products and shopping experiences. Loyalty programs like Sephora's Beauty Insider drive customer retention. AR tools on platforms like Snapchat allow virtual try-ons. Authentic influencers with high engagement rates are preferred. Building brand communities strengthens customer relationships. Social commerce on platforms like TikTok is crucial. Combining online and in-store experiences is essential. Subscription services offer consistent revenue. Consumers demand eco-friendly products and practices.

The industry is set for growth with increasing online sales and consumer confidence in digital channels. Brands should leverage trends like tech innovation, social shopping, and sustainability to thrive.

REUTERS/Kim Soo-Hyeon

South Korea's beauty industry is leveraging AI to develop personalized products, with companies like AmorePacific leading the charge. AI technology recommends the best lipstick colors and mixes custom face products, enhancing customer satisfaction. The global beauty market, valued at $625.6 billion in 2023, is seeing increased AI adoption, with brands like L'Oréal and Sephora also utilizing the technology. Experts predict the AI beauty market will grow from $3.27 billion in 2023 to $8.1 billion by 2028, driven by personalized beauty recommendations and virtual makeup artists.

TikTok Shop is revolutionizing e-commerce by offering brands a platform to connect with over 1 billion users. This integration boosts brand authenticity and trendiness, driving sales and engagement. The platform's accessibility allows both big and small brands to thrive, highlighting its potential to reshape the retail landscape.

Blo Blow Dry Bar has partnered with Bare Minerals to use its cruelty-free products as the exclusive retail makeup brand in the U.S. and Canada. This collaboration, announced on National Clean Beauty Day, aims to enhance Blo's makeup services and aligns with its commitment to offering premium beauty products.

The Supreme Court's decision to overturn the Chevron doctrine impacts the cosmetics industry by requiring courts to interpret laws themselves, rather than deferring to agency interpretations. This change may slow FDA rulemaking and increase challenges to FDA guidance, urging companies to actively participate in developing new regulations under the Modernization of Cosmetics Regulation Act.

Rewind It 10 has named Brody Jenner as the new face of their men's beard and hair dye brand. Jenner will represent the Medium Brown beard dye, joining a lineup of celebrity ambassadors. This move aims to resonate with millennial men and enhance the brand's market presence with high-quality, professional-grade products.