Weekly Newsletter - 09.19.2024

PLUS: Digital Marketing Trends for the Rest of 2024, Coca-Cola's 17 Cannes Lions awards and L'Oréal's Biotech Investments

Author

Beauty Broadcaster
September 19, 2024 • Estimated Reading Time: 7 minutes

Fospha's latest report, "The State of E-Commerce H2 2024", reveals crucial trends that will shape your marketing strategy. What's inside:

📱 How the major platforms' KPIs have trended in 2024, and where you should be investing.

🚀 How to access Paid Social's huge scaling potential.

✨ The most effective Google channel of 2024.

🎯 Full-funnel strategies for Meta, TikTok and Snapchat

Let's break down the platform-specific insights:

  • TikTok: Emerging as a powerhouse for efficient new customer acquisition

  • Meta: Maintaining strong performance with competitive CAC

  • Snapchat: Experiencing rapid growth, particularly effective during peak shopping periods

These findings underscore how impactful platforms like Meta, TikTok and Snapchat continue to be for driving sales - yet how underinvested they remain. It's incredible to see that brands can triple spend in Paid Social before becoming unprofitable. Success now lies in diversifying across the entire funnel, understanding the nuances of each platform, and continuously optimizing to unlock more scaling potential.

Amazon is emerging as a pivotal platform for male beauty shoppers, driving significant growth in the men's skincare and grooming market. Historically challenging to penetrate, this market is now expanding, with the global men's skincare sector valued at $4.49 billion in 2023, up from $3.94 billion in 2019. In the U.S., men's facial skincare sales rose 8 percent year-over-year, primarily driven by shave treatments. Despite this growth, men's skincare still represents a mere 2 percent of the prestige skincare market, indicating substantial room for expansion.

Estée Lauder’s brands, including Clinique, Bumble and Bumble, and Lab Series, have seen promising uptake among male consumers on Amazon's Premium Beauty store. Similarly, Kiehl's and Clarins report strong sales of men's and gender-neutral products on the platform. Amazon's appeal lies in its seamless shopping experience, convenience, and product variety, making it an ideal venue for brands to reach a growing male audience. Market Defense data highlights a 22 percent increase in searches for "men's skincare routine" and a 54 percent rise in "men's skincare sets" year-over-year.

Fragrance, deodorant, and grooming tools dominate Amazon's men's beauty sales, with men's fragrance alone generating $250 million, a 43 percent increase from the previous year. Notable products include Jack Black Pit Boss Men's Deodorant and Montblanc Starwalker Eau de Toilette. Beyond Amazon, the men's market is gaining traction, with L'Oréal and Bath & Body Works reporting significant growth in men's skincare and body care categories. This trend underscores the increasing importance of catering to male consumers in the beauty industry. 

WPP and Coca-Cola topped the 2024 Cannes Lions creative charts, with Coca-Cola winning 17 awards. WPP was named Creative Company of the Year. Heineken and Apple followed in the rankings. The United States was the most creative country. The LIONS Creativity Report highlights impactful creativity driving growth.

MILANI

The beauty industry is spotlighting female athletes like Simone Biles and ShaCarri Richardson during the Paris Olympics to boost sales amid a slowdown. Brands like Sephora, Milani, and Olay are leveraging these partnerships to promote products, highlighting the endurance and visibility of women in sports to attract new customers.

L'Oréal

L'Oréal has joined Abolis Biotechnologies' $38.6 million funding round, alongside Evonik, to develop bio-based beauty ingredients. Abolis, a French start-up in the Genopole research hub, specializes in micro-organisms. Founded in 2014, it previously raised $1.2 million. This investment underscores L'Oréal's commitment to innovative, sustainable beauty solutions.

Shopify partners with Roblox to integrate in-game shopping, allowing brands to sell physical items directly within the game. This collaboration targets Roblox's 80 million daily users, with a full launch in 2025. Shopify's president highlights the endless possibilities, emphasizing the future of immersive commerce in the digital world.

The beauty industry is experiencing a slowdown in product launches due to economic pressures, regulatory challenges, and shifting consumer preferences. Experts suggest this isn't necessarily bad, as it allows for more thoughtful innovation and sustainability. Brands are focusing on refining existing products and embracing meaningful, long-term research.

Canyon Ranch's "Enchant at Canyon Ranch" festival in Lenox, Massachusetts, from October 20-25, will feature top beauty and wellness experts, including Sir John and Rachel Roy. The event will showcase over 25 brands, offering guests exclusive experiences, product demos, and wellness insights, emphasizing innovation and personal transformation.

We Are Social's new study highlights five trends reshaping brand-creator collaborations: creators reinventing themselves, relatable realism, influential allies, credible creativity, and extreme influence. Brands should adapt to these shifts, partnering with creators through lifestyle changes and focusing on relevant, stable content over aspirational luxury.