TRENDS OF BEAUTY INDUSTRY

The trends of beauty industry are always volatile and continues to change shapes but now things turn harder with the change of customers’ attitude as they have become health conscious which has shifted marketing paradigm. However, the industry has to fit itself in the changing scenario for its very survival.

Following the pandemic, though the beauty industry recovered the early setback, it had been facing drastic transition as the industry czars have been witnessing paradigm shift in the behavior of the customers because they are getting more conscious about their health. In this context, the industry has to make changes to fit itself within the parameters of the market. In the past, the industry used to set the trends with marketing strategy but now it is people’s priorities which are governing the trends. It is a decided fact that beauty products are not essential aspect of life rather these are luxuries so these can be done away with for the sake of health. In this way, the beauty industry has to struggle hard to remain relevant in the market.

MEDICAL PRESCRIPTION

The customers who are health conscious prefer to consult their medical practitioners for the problems they are facing with regard to their skin. They follow the advice and prescription given by the doctor. This trend though beneficial for the users but poses a challenge to the industry. This factor is compelling them to change their marketing strategy. Previously, the marketing strategy is focused on approaching the users directly as they tried to convince the customers through gentle advice that their skin would be smooth, oily and beautiful by using this product or that product. The casual users were influenced with attractive packaging and aromatic fragrance but now another factor gets its foot into the business and the cosmetic industry would approach the medical men to woo them suggesting their products to the users.

NATURAL INGREDIENTS

Post-pandemic scenario witnesses many drastic changes in trends and approach of the people as they turn more specific to the ingredients of the products they want to use. Skincare is no exception in this regard as the people are more concerned about the health of their skin instead of hiding wrinkles and moles. They want to go through the formulae and details of the ingredients. A well over 40 percent of buyers prefer products based on natural substances and the brands which are vegan, cruelty-free and environment-friendly. The decoder services prop up which allow the consumers go through the ingredients of the beauty products. This aspect prompts the producers to remove health hazardous elements from their products to keep themselves relevant in the market. For instance, Kiehl’e stopped using parabens from the moisturizer formula and their average order value (AOV) rose to above 30 percent.

DRUNK ELEPHANT

Drunk elephant products emerged on the horizon of the beauty industry in 2012 with a new philosophy that related to doing away with the ingredients which are irritating, sensitising, disruptive or inflammatory and substituting with smart, biocompatible, skin friendly substances. It is to ditch the culprits which are called Suspicious-6 — essential oil, drying alcohols, silicones, chemical sunscreens, fragrance and dyes and SLS — sodium lauryl sulfate used as emulsifier or surfactant. It stabilises and thickens solutions having ingredients with varying solubility. The drunk elephant products ensure smooth and healthy skin having no health harmful components and has high demand among the users. It is yet to ascertain whether these products are skin friendly as practice may be different from the claim. A wrong notion is on the rife that these are Korean products but the entire range is based in the USA.

MARKETING PARADIGM

The marketing paradigm of the beauty industry has always been uncertain and fluid with regard to low customer lifetime value (LCLV) and average order value (AOV). The brands have to fight on the tough ground because of hard competition because volatile customer behaviour. The customer loyalty ratio has always been as low as a little over 40 percent because the users have been switching over to the new cosmetic products and they have been getting more and more demanding. After the pandemic which has suffocated the cosmetics industry, the shift in approach has made it all the more difficult to stay afloat because the beauty products began to give way to the skincare and haircare items. It has become difficult for many brands to woo new customers and retain the existing ones.

The technology-based trends have also posed a challenging environment for the beauty industry as the stores in shopping malls losing validity in the face of huge influx of online shopping trends. It reduces physical contact with the customers and this factor allows the brands no more opportunity to analyse the users’ behaviour and approach. This transitional aspect forced the brands to broaden their marketing strategy and they have to use different technology-based tools to attract the customers. The online stores are just a few clicks away from the customers who have already made wide research and analysis before coming to the point of purchasing. In this situation, the brands are at a loss and know nothing what the customers think and which are their priorities with regard to purchases of the beauty products.

BOTTOMLINE

At the conclusive point, the trends of beauty industry keep on changing but after the Covid-19 pandemic the situation turns more challenging. Before it, the customers were made to incline to use such and such products with friendly advice that these would enhance their beauty and make them attractive and presentable. Following the pandemic, the customers turned logical, analytical, scientific and health conscious and now they cannot be wooed to use the products for mere attraction and beauty. They demand something beneficial and health friendly. Whatsoever the market trends or customers’ behaviour are, one has to survive and only those survive which are the fittest. The beauty industry has to make certain changes to make them fit in the changing scenario. Now the customers reign supreme contrary to the past when brands ruled over the market. Moreover, the producers must be fair enough and develop their products in line with the health parameters keeping the wellbeing of the people at large in mind and providing them with products which are hazard free and users’ friendly. It is a decided factor that fairness begets fairness.

FAQs (Frequent Asked Questions)