Vogue Business recently published its inaugural Beauty Index, providing key insights into the beauty industry, assessing brands across four pillars – consumer, digital, ESG, and innovation – and includes the results of an extensive consumer survey of 3,336 beauty consumers in the UK, US, China, France, Italy, and the Middle East.
The Index was launched at a webinar where Aunjeet Kaur of Phronesis joined Anusha Couttigane and Amy Rollinson from Vogue Business and Alison Bringé from Launchmetrics. The panel of industry experts shared valuable insights on the influence of technology in reshaping the customer experience, and the pivotal role of innovation in paving the way for the future success of beauty brands.
Watch the replay
Webinar highlights
Below are some of the key insights from the webinar:
The significance of consumer research in assessing brand competitiveness
Brands are evolving from physical retail to immersive digital experiences, mirroring consumers’ changing attitudes and values. Many consumers now seek more than just high-quality products. In this transformational shift, where consumers are moving from a focus on product quality to valuing brand purpose and experience, consumer research becomes essential for brands to remain relevant and competitive.
Opportunities for beauty brands amid the cost-of-living crisis
Many consumers turn to beauty products as an ‘affordable’ means of elevating their mood and experience a sense of well-being. This shift became evident during COVID-19 as consumers consistently invested in beauty products above other options. Brands willing to innovate their sales approach and maintain competitive prices can build a loyal customer base for long-term success.
Contrasting luxury fashion and beauty index findings
- Accessibility for aspiring luxury consumers: Luxury beauty products are more accessible to aspiring luxury consumers than luxury fashion, drawing a larger audience and an attractive entry point into the world of luxury.
- Storytelling via packaging: Luxury fashion brands have more recognition and widespread visibility. Luxury beauty brands can bridge this gap with storytelling packaging, serving as a visual introduction to the brand and underscoring the significance of an appealing presentation.
- Capitalizing digital engagement: Many beauty brands depend on multi-brand retailers, concession stands, and their own e-commerce platforms. This heavy reliance on digital channels underscores the critical role of digital engagement in leaving a lasting impression on consumers. The Beauty Index underscores the paramount importance of these platforms as essential touchpoints in the consumer journey within the beauty industry.
The Beauty Index uncovers several noteworthy findings that shed light on the ever-evolving landscape of the beauty industry, including:
- The growing opportunity in the beauty sector among male consumers. Gender-neutral beauty brands have gained substantial popularity, breaking traditional boundaries and catering to a diverse audience. This shift demonstrates the industry’s adaptability and inclusivity.
- The 35-44 age group emerges as a robust market segment, showcasing the most substantial demand for various forms of innovation. AI Skin Diagnostics and AR Product Try-On experiences resonate particularly well with this demographic, signifying their appetite for cutting-edge beauty technologies.
- The Middle East and China are thriving hubs for beauty, and brands should consider engaging with these regions, especially given their unique beauty standards and culturally ingrained skincare routines.
These fundamental discoveries not only reflect the dynamism of the beauty industry but also underscore the importance of staying attuned to shifting consumer preferences, embracing innovation, and recognizing the global reach of the beauty sector. In a competitive market, these insights guide beauty brands toward a more inclusive, technologically advanced, and culturally aware future.
For more information on how Phronesis Partners can help your brand stay ahead of the curve, get in touch and let’s craft your success story together.
Author: Anujeet Kaur | VP – Client Servicing
