Retail Forecast: The Changing Face of Beauty (Part 3)

In a sector with such a wealth of knowledge, innovation and expertise at play, it is exciting to bear witness to some of the most powerful beauty experiences across the globe. However, taking a pause on the brands and retailers for a moment, we want to delve deeper into how shoppers themselves are changing the scope of the beauty industry. Introducing Part 3 of our beauty retail series:

A New Generation of Shopper

Establishing the mindsets and motivations behind a new generation of shopper can help us clearly define what beauty-lovers are craving from their brands and retailers.

Firstly, the mindsets:

Traditionally, beauty brands could be forgiven for investing millions into demographic research. Focused entirely on gender, ethnic original, socioeconomic status and age, these demographics became a springboard for marketing strategies. And while there is still a place in the beauty sector to consider these factors, there is a much wider scope for assessing the wants and needs of the modern beauty consumer. Refusing to be stereotyped by their physical attributes alone, these consumers call for brands to appreciate personal beauty goals. For us to understand and appreciate these goals, we’ve established a set of three beauty profiles which determine the mindsets of the consumer:

THE EXPLORER

The beauty explorer might be new to the game, using social media for extensive research into the latest tips, tricks and techniques in cosmetics, skincare and haircare. They are acutely aware of what’s hot in beauty, but they are open to exploring what products might fit into their daily routines.

Explorers will find themselves at home in beauty retailers and department stores, treating them as their own personal playground of brand discovery.

THE ENTHUSIAST

The beauty enthusiast is highly driven by self-expression. On a path to fulfil their beauty goals, they are open to experimentation. Their bathroom cabinet is full of tried and tested products, and they are more than willing to shout about brands, products and services which have exceeded expectations.

The enthusiast demands authenticity across all sectors of beauty and will most likely be found enjoying the transparency of brands such as Deciem, Beauty Pie and Glossier.

THE EXPERT

The expert is motivated by results. They are highly experienced in beauty and know their niacinamide from their hyaluronic acid. Most importantly, they know exactly what they require to achieve their goal and they’re looking for brands who understand this.

From Skin & Me and Function of Beauty through to the immersive pop-ups with Drunk Elephant and Charlotte Tilbury, the expert seeks a tailored experience which has been designed for them.

And secondly, the motivations:

With the meteoric rise of the wellness trend, young adults today are unapologetically themselves. While they may not be leaving cosmetics and beauty treatments behind, their preferences lie in feeling good in themselves, as much as looking good. They place the highest importance on authenticity, with 8 in 10 gen-z and millennial shoppers defining “being yourself” as their preferred definition of ‘beauty’. Thus, the motivations of the modern shopper are, without a doubt, rooted in authenticity and inclusivity.

Beauty brands and retailers must understand this shift in prioritising the self by speaking to specific customers. They can no longer push their brand strapline and assume that the biggest marketing budget will attract the attention of a ‘core demographic’. The success of beauty brands now lies in speaking with a specific consumer base, creating products and services which promote an individual’s best self. And there is no level of inclusivity which goes too far. Whether it is a commitment to unisex produce messaging (Glossier, The Ordinary, Byoma) or a keen focus on ethnicities (Fenty, Sleek), there is a broad desire for inclusivity. And a potential implication for brands who are not offering this.

In 2023 and beyond, the most successful beauty brands will be those who respond to a consumer demand for self-expression, transparency and authenticity. 

The Savvy Beauty Shopper

And we can’t discuss the mindsets and motivations behind the modern beauty consumer without referencing cost. The new generation of shopper is cash-conscious and while this doesn’t mean they are averse to spending, they are certainly more mindful of how and why.

With #budgetbeauty trending on TikTok, there has been a rise in the promotion of own-brand beauty products and references to the ‘perfect’ dupe. Consumers are looking to do more with less, seeking to fill their regime with products that work – without breaking the bank. 

But this shouldn’t deter brands from higher-price points. After all bargain-hunting is only one aspect of the savvy beauty shopper. Most importantly, they are seeking validation prior to committing to a larger spend. And while this validation can come directly from brand messaging, there is an understanding that consumers are more likely looking to peers, influencers and communities of like-minded individuals to offer advice.

Online and in-store, beauty brands can speak directly to the savvy beauty shopper through references to product reviews, transparent product costs (think Beauty Pie) and sustainability initiatives (think refill options like Skin Rocks).

Decades ago, beauty brands and retailers remained in complete control of their futures and could fairly easily predict their next financial year based on product margins, store openings and footfall. However, insight into the new generation of shopper has highlighted a need to relinquish 'brand control' somewhat.

No longer can beauty brands only speak to their customer, they must speak with them. They must become curators, gathering information and intentions from their beauty fans and building flexible retail strategies around this.

The new generation of beauty shopper is powerful and we predict that the success of beauty retailing will rest heavily on the mindsets and motivations we've discussed in this series.

Next up...

Throughout this article, we’ve referenced the importance of consumers being unequivocally themselves. With that in mind, we’ll be releasing Part 4: A Wider Scope for Personalisation next....