Weekly Newsletter - 10.31.2024

Brand investment trends from Shoptalk Fall and John Lewis beauty hall expansion

Author

Rachael Kennedy
October 31, 2024 • Estimated Reading Time: 7 minutes

Couldn’t make it to Chicago for Shoptalk Fall? In this post, Jamie Bolton gives us a rundown of the key trends and strategies brands are betting on in Fall 2024:

🔑 Invest in Brand: Investing in brand has never been more important. Full-funnel strategies on Paid Social are now crucial, allowing brands to both build awareness and drive conversions in-platform. As Kyle Leahy from Glossier puts it, “People want to be part of something bigger.”

🛍️ Go Omni for Growth: As D2C growth hits limits, embracing an omni-channel sales approach is key to staying resilient. Brands like Solo Stove and Chinese Laundry are leading with strategies that don’t replicate D2C on third-party retail, finding unique advantages in each.

✈️ Go Global: With lower CPMs and wide-open markets, the EU offers significant growth opportunities. Effective localization strategies are essential for US brands looking to expand abroad.

For a deeper dive, check out the full post here!

Ulta Beauty is embarking on an ambitious expansion plan, aiming to open 200 new stores over the next three years, targeting a total of 1,800 locations. This strategic move underscores Ulta's commitment to solidifying its position as a leader in the beauty industry.

The retailer's strategy includes enhancing its loyalty program, expanding wellness offerings, and deepening guest engagement through community-building and personalization.

Ulta's growth initiatives are not limited to physical stores. The company is also focusing on digital engagement, aiming to streamline the shopping experience and enhance omnichannel satisfaction. This comprehensive approach is designed to meet customers wherever they are, ensuring a seamless and satisfying experience. Despite anticipated transitional years in 2024 and 2025, Ulta remains optimistic about long-term growth, targeting a 4 to 6 percent increase in net sales by 2026.

In addition to its expansion plans, Ulta is enhancing its in-store services, including packaging recycling and product sampling kiosks. The retailer is also expanding its reach internationally, with plans to enter the Mexican market in 2025.

SalonInteractive's Beauty Retail Revolution aims to reclaim retail revenue for beauty professionals by hosting rallies that unite industry leaders and professionals.

These events foster community, provide education, and support industry charities, empowering salons to retain their rightful share of product sales and maintain professional standards.

Charlotte Tilbury’s Magic Cream has become a beauty icon since its debut in 2013, gracing red carpets and backstage at top fashion events worldwide. Created by Charlotte herself for a quick fix that would revive and illuminate tired, dehydrated skin, it quickly became a staple in the kits of celebrity makeup artists.

This luxurious moisturizer combines rich hydration with a smooth, glowing finish, providing the perfect makeup base without pilling. Loved by stars and everyday users alike, one jar is sold every minute, proving that Tilbury’s "magic" formula truly lives up to its enchanting reputation.

John Lewis has revamped its Oxford Street beauty hall, expanding it by 25% with 175 brands, reflecting a resurgence in high-street beauty shopping. Despite online sales, in-store experiences remain crucial. The beauty industry is thriving, with spending up by over 10%, driven by consumer demand for luxury wellness.

DATA DIVE 🤿
Q3 Trends For Beauty Brands Revealed

Latest benchmarking data from our data partner Fospha reveals that Meta still dominates as the highest spend channel for beauty brands, holding an average 56% share of wallet.

Beauty brands are increasingly investing in TikTok, which claimed an 18% share of ad spend in Q3. This growing share of wallet reflects TikTok’s unique strength as a product discovery engine: 61% of users report using the platform to discover new brands and products.

It’s no secret that influencer marketing is effective, but new Q3 data reveals it as the most efficient channel, delivering the highest ROAS for beauty brands. By leveraging authentic partnerships with trusted influencers, brands are achieving targeted, cost-effective conversions and maximizing their return on ad spend with highly engaged audiences.

Google Performance Max enhances eCommerce campaigns by utilizing multiple Google platforms, offering increased reach and automation. It provides an 18% conversion boost, real-time insights, and efficient ad targeting. Businesses should leverage audience segmentation and automated asset creation to optimize results, maximizing return on ad spend and campaign effectiveness.

The Inside Beauty & Wellness Forum highlighted the intersection of beauty and wellness, emphasizing community, innovation, and consumer engagement. Industry leaders discussed the importance of authentic brand connections, technological advancements, and addressing misinformation. The event showcased how brands can adapt to evolving consumer needs and foster meaningful community relationships.

“Part of the story is engaging [shoppers]— bringing her in to look at products, picking them up and making sure there are great claims and making sure the information is digestible for her.”

— Leigha Dunbar, Senior DMM, Senior Director, Walgreens

Kiss Products has enhanced its Falscara line by introducing a Value Pack with more wisps and a 14-day wear Overnighter. This expansion offers beauty enthusiasts greater flexibility and longevity in DIY lash extensions. Available online and in major retailers, the pack is priced at $24.99, ensuring accessibility.

Amazon Marketing Cloud (AMC) offers a suite of tools to enhance your campaigns. Use Amazon Ads for product visibility and create cost-per-click ads. AMC centralizes campaign management, providing near real-time metrics. For assistance, contact Amazon Ads; budget minimums apply.