It’s nothing new for fashion brands such as Hermes and Birkenstock to expand their brands through skincare and beauty lines. In 2019, the global beauty industry was valued at $532 Billion, of which smaller products such as face and nail products account for $6 Billion in the US. There is no doubt that beauty items are on a strong growth trajectory.
You may have heard of the ‘Lipstick Effect’, a phrase coined by Estee Lauder. It’s commonplace during times of economic downturn for consumers to purchase smaller ticket items such as a lipstick, seeking satisfaction from smaller purchases in substitute for larger items such as clothing.
However, the ‘lipstick effect’ of 2020 is looking a little different. With many people having to wear masks (where you can’t see their smile), reduced access to social events and the introduction of social distancing, cosmetic sales have faltered. The real growth has been in personal care products (as hair and nail salons have closed in some areas) and skincare products. McKinsey have coined a new phrase: the ‘nail polish effect’.
In terms of online beauty growth, 2020 is really the perfect storm of cosmetic businesses undergoing digital transformation and the lockdown effect brought about by COVID-19. Increasing amounts of consumers are purchasing high-end beauty products to create a ‘home spa effect’ - an indulgence after enduring long periods at home, coupled with work and in some instances, home schooling.
Many beauty companies are looking for candidates with fashion industry experience who are interested in crossing over to beauty.
If this is something you would like to explore, please contact us.
Kind Regards,
Janine, Amy and Natalie