The cosmetic and beauty industry has surged over the last few years as more people are aware of their image. The boost in this industry is associated with the growing population, middle-class people seeking new forms of luxury, and the availability of products. More and more products are being manufactured locally, making them affordable and of good quality. An example of the cosmetic and beauty industry is the medical spa.
There are unique circumstances associated with this industry where entrepreneurship boils down. Entrepreneurs are looking for ways every day to personalize and customize their products to meet the needs of their clientele.
- Young independent brands. This brand takes advantage of social media to influence and market products and services. The target market is the millennials who want to take “Instagrammable” and Snapchat-worthy pictures. TikTok is another platform that brands should maximize their potential by tapping into.
- Mergers and acquisitions. Similar to other industries, major companies and corporations merge and acquire small companies for a higher valuation. Moreover, these mergers and acquisitions create a buzz in the industry-leading to high investments and quality products and services.
- Both men and women are on the journey of exploring beauty and cosmetic products. In the past, most women were concerned about enhancing their appearance, but this is not the case anymore. Now, consumers seek brands that are naturally made, artisanal, and locally produced in all categories.
One of the trends popping up in the beauty industry is clean beauty products. Manufacturers are keener on producing products that don’t harm the environment after use. The world’s vision to attain a sustainable environment may be far off, but the beauty and cosmetic industry is trying to attain sustainability and wellness. Additionally, people are going for anti-aging products. Beauty and cosmetic products are being renovated to ensure consumers remain ageless.
Another trend to watch out for is the use of small-scale influencers. Many mega-influencers are jumping on the bandwagon and developing their line of beauty and cosmetic products. Major corporations prefer to work with small-scale influencers who are credible and authentic. Product innovation has led to personalization in the past and is a trend used even today. The challenge with innovating products is that a segment of that product revenue dips. For example, when lip gloss was invented, there was a decline in sales in the lipstick segment.
Many consumers now prefer the natural or nude look. They want to have a lower quantity of makeup products but quality products. Corporations are taking notes about the gender neutrality of people who want to look both female and male. This group of people has created a huge niche in the beauty and cosmetic industry with cosmetic surgery. Some consumers also use this product for work purposes such as singing or dancing as a form of character.
Last but not least, companies are producing cosmetic products that are harmless to people of color. Recently, the market was flooded by many bleaching products, and people of color criticized and demanded their inclusion. Consumers want to look and feel good in their skin without having to bleach their skin tones. The cosmetic and beauty industry is booming but not without challenges. The biggest challenge the industry is facing is faking products. Companies and corporates have come out strongly to help their consumers identify their products’ authenticity and originality. Some products have a specific label, price, or packaging one must look out for.
Truth is said, not all consumers will afford the original products. Major companies are opting to set up physical branches in city hubs and create online shops that will serve many consumers.
