Weekly Newsletter - 08.08.2024

Those finishing touches with Meta

Millions of people around the world saw it – the track star Sha’Carri Rochardson applying lipstick moments before she ran the 100m final in Paris.

Hours later, Dominic Skinner, the head makeup artist at MAC Cosmetics took to Instagram to share the exact product Richardson applied on camera .

"I've found it, it's this, it's the MAC Squirt Plumping Gloss Stick, $26 /£22, it is a beautiful high shine gloss stick and you just twist up what you need and apply straight to the lips,” he revealed to his 614k followers. 

“You can either sweep it on like you would a regular lip gloss or press it on like Sha'Carri did. You can use it with a lip pencil, or over lipstick or just on its own. This colour in particular, the one she used, is called Lower Cut.” 

Whether it was intentional or not, Meta has now become MAC’s best friend.  

Sprinting to success 

Through its various channels, Snapchat and Instagram included, Meta continues to be a powerhouse for e-commerce brands, delivering unparalleled Return on Ad Spend (ROAS). The social media giant reported a 23% year-over-year increase in ad revenue, driven by e-commerce brands using its advanced tools to achieve growth. 

According to Meta’s Alphonso Calatrava, here’s how top-performing brands are mastering Meta. 

1. Cultivate a measurement-driven mindset 

From the outset, prioritize a culture where measurement is integral to decision-making. As Jamie Bolton, VP Growth at Fospha notes, “Create a culture where measurement is a key element to decision making – this will really aid performance long term." 

2. Leverage Meta’s full funnel

Fospha's report reveals that successful larger brands, particularly those in the mature stage, are adopting a comprehensive full-funnel strategy. 

While mature brands allocate 17% of their spend to upper funnel activities, they maintain a balanced approach across the entire funnel. The data indicates that as brands grow, they increasingly diversify their channel mix and funnel strategy. 

Mature brands reduce the proportion of conversion activity, investing more in awareness, consideration, and Advantage+ campaigns: 

• Conversion: Driving immediate sales or actions (lower funnel). 

• Awareness: Increasing brand visibility among potential customers (upper funnel). 

• Consideration: Engaging potential customers to learn more and consider purchasing (mid-funnel). 

• Advantage+: AI-driven campaigns optimizing budget across the funnel. 

This balanced approach brings their total investment in long-term resilience to 31%, enhancing both engagement and conversion rates.  

3. Utilize Advantage+ 

Since early this year, there has been a notable increase in spending on Advantage+ campaigns, with many advertisers reporting a shift in strategy to capitalize on Meta’s AI-driven capabilities. 

Brands that integrate Advantage+ see better results compared to manual campaigns. According to Fospha’s data, digitally mature brands allocate 17% of their budget to Advantage+, yielding the highest returns across all groups. 

E-COMMERCE
TikTok Shop's U.S. Expansion: Opportunities and Challenges in E-Commerce

TikTok Shop is rapidly expanding in the U.S. market, with sales surpassing $100 million in a single month by Q3 2023 and aiming for $17 billion in GMV for 2024. Popular categories include beauty, personal care, and electronics, supported by TikTok's vast user base of 150 million monthly active users. However, the platform faces intense competition from giants like Amazon and Shein, and challenges in live commerce and high entry barriers for cross-border sellers.

Despite these hurdles, TikTok Shop's future looks promising. The rise of live commerce, new category opportunities, and the growth of local DTC brands present significant growth avenues. Sellers can leverage TikTok's unique shopping experience, which integrates in-app purchases and live shopping events, to reach a broad audience and capitalize on emerging trends. Embracing these opportunities will be crucial for success in this dynamic e-commerce landscape.

BEAUTY INSIGHTS
Top TikTok Beauty Trends to Watch in 2024

TikTok's influence on the beauty industry is undeniable, with trends like #beautytok and underpainting by Mary Phillips shaping consumer behavior. Key trends for 2024 include:

Millionaire Makers: Beauty startups like P Louise and Canvas Beauty achieving $1m+ sales in single live events.

Entertaining Brands: High engagement and sales growth for brands like Florence by Mills and Kylie Cosmetics through entertaining content.

Predicted trends such as Sabrina Carpenter glam and keychain minis are set to dominate. However, the potential US ban on TikTok poses uncertainty, urging brands to adapt their strategies. TikTok's role in driving sales and engagement highlights its transformative impact on the beauty landscape.

RETAIL INSIGHTS
LTK Study Highlights Creator Commerce's Impact on Holiday Shopping Trends

The LTK 2024 Holiday Shopper Study reveals a significant shift towards creator commerce, with 75% of Gen Z and 64% of Millennials purchasing from creators. Creator shoppers exhibit increased buying power, starting holiday shopping earlier, and prioritizing brand loyalty and availability over price. Entertainment and beauty gifts dominate preferences.

BUSINESS STRATEGY
International Beauty Brands Share Strategies for U.S. Market Expansion 

Italian makeup brand Kiko Milano and British bodycare startup Mirror Water are targeting the U.S. market for growth. Kiko Milano, with 70% of its sales outside Italy, aims to increase its U.S. presence, leveraging a recent investment from L Catterton. Mirror Water, driven by founder Este Lalonde's social media influence, is focusing on U.S. expansion to meet demand and attract investors.

Strategic Approaches: Kiko Milano is prioritizing online penetration and partnerships with retailers like Nordstrom, while Mirror Water is targeting small specialty retailers and luxury e-commerce sites. Both brands recognize the U.S. market's complexity and are tailoring their strategies to navigate its unique distribution landscape.

TIKTOK SHOP
How Beauty Start-Ups Are Thriving on TikTok Shop

Beauty start-ups are revolutionizing sales on TikTok Shop, with P. Louise setting a new record by earning $1.5 million in just 12 hours. This follows the success of Made by Mitchell and Canvas Beauty, who each made $1 million through single live events earlier in July 2024.This trend is expected to grow, with forecasts predicting sales to reach $5 million during a single live streaming event by November 2024. The rapid success of these brands highlights the transformative potential of TikTok Shop for small businesses in the beauty industry.