Forbes describes the cosmetics industry as being in a state of “enormous, tectonic change.” It is not hyperbole. Here are four of the most disruptive changes cosmetics companies are grappling with.
1. The line between product and technology has blurred. And technology is widening the traditional boundaries of the market. Consider the example of the do-it-yourself face mask maker available from Lidl, a German grocery store, which lets consumers create their own personal face mask using easy-to-find ingredients including collagen, milk and fruit juice! In personal care and beauty today, it’s easy to be ‘out-teched’ by a competitor.
2. The explosion of direct-to-consumer options are challenging established brands and channels. Direct-to-consumer products are everywhere, from socks to ties to groceries, and all throughout the line of beauty care products. Established brands with their legacy operations and technologies, and huge investment in retail distribution now have to contend with upstarts that were born in the digital channel and have direct-to-consumer as a core competency.
3. CX experiences are being held to the highest standards across the digital world. Customers today don’t compare brand experiences within the borders of a specific industry. For example, if they have a great customer experience with a Netflix app that knows their preferences and recommends relevant content, that level of personalization becomes the new bar that other brands, in other industries, are expected to attain. Consider the impact that digital experiences are having on cosmetics buyers:
- 35% of Chinese beauty buyers aged 20-49 are interested in trying a mobile app that can recommend beauty products based on their needs
- 30% of UK fashion buyers are interested in digital screens to search for product information while in-store
Source: Global Beauty Trends 2018, Mintel
4. Ingredient sourcing transparency is increasingly important. Product ingredient and sourcing is serious business for consumers. A lot of this is being driven by alternative wellness solutions that are being used for beauty, like essential oils. doTERRA, one of the leading essential oils manufacturers provides batch numbers on its bottles that consumers can enter on its website to track ingredient testing results, putting the power of claims validation in every customer’s hands.
The list of trends goes on and on. But the way to get ahead of them is to infuse agility throughout your company.
We go deep on what that means in our new white paper Agility Comes to Cosmetics. Download your copy today to see how your company can become more agile and unified throughout the product journey – and protect the future of your brand.