Weekly Newsletter - 12.5.2024

PLUS: 2025 beauty trends emphasize bold looks & mindful skincare

Author

Priscilla Soedarpo
December 05, 2024 • Estimated Reading Time: 7 minutes

Welcome to Beauty Broadcaster, your hub for beauty e-commerce insights. With Black Friday around the corner, here’s what you need to know to stay ahead:

💡 AI Innovations: LookFantastic’s Foundation Finder drove a 159% Black Friday sales spike. Stay tuned for its Q1 concealer tool launch.

🎉 Event Alert: Join Beauty Accelerate 2025 (March 12-13, NJ) for science-driven beauty trends.

🌍 Trends to Watch: Geo-targeted products and BNPL strategies are reshaping e-commerce success.

Top Shelf 🛒

With BFCM wrapped up, marketers are shifting gears to plan for 2025. To help you start strong, here are three essential tips to set your brand up for growth:

1️⃣ Get the Right Measurement in Place: You can’t plan for next year without accurate measurement. Yet, many brands stick with the devil they know—Last Click— despite its fundamental flaws.

With BFCM in the bag, now’s the perfect time to adopt effective full-funnel measurement. Plus, Fospha delivers YoY metrics from the start, so you can dive into budget planning ASAP.

2️⃣ Consider Adjusting Your Channel Mix: What worked last year might not work now. Successful brands adapt by altering their channel mix and ad spend as they scale. We find that as brands mature, they have to focus on expanding their upper funnel spend to create more demand to capture.

3️⃣ Reflect on Peak Performance: Before diving into next year, take time to assess your BFCM performance. Benchmarking data is your compass and gives you data-backed edge for 2025 planning.

For free BFCM 2024 benchmarking data, sign up for priority access to our BFCM 2024 Report here.

LookFantastic

LookFantastic's Foundation Finder, developed by THG’s tech powerhouse Ingenuity, stands as a beacon of how AI can reshape consumer interactions and drive strategic growth within e-commerce realms. With its introduction last year, the tool has already transformed browsing into substantial sales, achieving nearly 20,000 orders from 426,000 visits, a testament to the power of personalization in boosting conversion rates.

Intriguingly, the tool delivered a 159% spike in category sales during Black Friday 2023, illustrating a remarkable intersection of technology and consumer behavior that propels market share. The reported sales increases from Illamasqua and Laura Mercier, at 14% and 13% respectively, reflect the potential for brands to amplify their presence and foster loyalty through targeted AI solutions.

The imminent launch of a concealer finder tool in Q1 2025 hints at the continued evolution of such dynamic innovations. As brands aim to capture and retain consumer interest, this strategy not only enhances competitiveness but fundamentally transforms the landscape of customer engagement. The Foundation Finder's success urges the industry to critically appraise and implement technologically advanced strategies to remain at the forefront of the evolving e-commerce environment.

Join Beauty Accelerate 2025 on March 12-13 in New Jersey for insights from industry experts like Ron Robinson. This event will explore science-backed beauty trends, engaging new generations, and innovative beauty solutions. Access tips for product development and marketing success while enjoying networking opportunities and expert discussions.

Cleanlogic

Beauty brands are increasingly aligning with social causes to resonate with values-driven consumers. This trend, exemplified by companies like Okay Pure Naturals and Cleanlogic, emphasizes inclusivity and employment opportunities for marginalized groups. Purpose-driven products appeal to informed buyers, marrying functionality with ethical commitment and fostering community engagement.

Influencer Corner 📣

Sarah Levinger on LinkedIn: The reason you're not scaling isn't because your ads are "bad"...

You’re stuck because you don’t understand the humans you sell to:

→ What drives their decisions.
→ What emotions they need to feel.
→ What keeps them from buying.

Fix that, the ads will fix themselves.

Beauty trends in 2025 include mindful consumerism, the 'Ozempic effect' on skincare, bold eye makeup, and brands adopting entertainment strategies. Emphasis on self-expression, rebellion against traditional beauty norms, and preventive skincare strategies define the year's innovations, showcasing dynamic consumer preferences and industry adaptations.

Extended Black Friday and Cyber Monday sales challenge e-commerce marketers, requiring strategic creativity in promotions to maintain profitability, especially for smaller brands. Early sales from major retailers like Amazon emphasize the importance of proactive planning to stay competitive.

Geo-targeted beauty products offer e-commerce marketers a strategic edge by catering to consumer demands for location-specific skincare. By leveraging scientific research and technology, brands can align product offerings with regional environmental challenges, fostering unique market differentiation and boosting consumer loyalty through hyper-personalized shopping experiences. This trend presents actionable growth avenues for discerning marketers.

Strategically allocate 7-12% of revenue for eCommerce marketing; startups might invest 15-20% for initial growth. Focus on customer acquisition while prioritizing high-return channels and tracking ROI. Assess customer lifetime value for sustainable tactics. Challenge your eCommerce methods by embracing adaptability and regular evaluations to maximize long-term market gains.

Promotions in the beauty industry are evolving, focusing on tailored strategies and loyalty programs. Consumers increasingly wait for deals, driven by social media buzz and competition. However, promotional effectiveness varies, and fragrance remains less dependent on discounts. Pricing pressures and consumer sensitivity shape the market's current landscape.

BNPL is reshaping holiday marketing strategies by integrating 0% financing with promotions, appealing to budget-savvy shoppers. This strategic approach not only differentiates brands but also offers a creative edge in managing consumer spending. Embrace these insights to enhance your strategic planning in the competitive e-commerce landscape, aligning with evolving consumer expectations.

Customer Relations

📍 London, UK

Marketing & Comms

 📍 Austin, TX, USA

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