Why Beauty’s Challenger Brands Need to Rev Up Growth
For many emerging beauty brands, the early days of getting up and running has been the relatively easy part. Now, they need to confront even greater challenges to continue their growth trajectories, according to The State of Fashion: Beauty.
In a group of 46 brands, each with global retail sales of between $50 million and $200 million in 2017, only four surpassed the $400 million mark after five years.
Material growth for young brands will require a laser focus on expanding their channel mixes, regional footprints and — at a later stage — categories.
To scale, some upstarts may decide to follow the likes of CeraVe, Charlotte Tilbury and Mielle Organics and sell all or some of their businesses to conglomerates like L’Oréal, Puig or Procter & Gamble.
The State of Fashion: Beauty explores why outsized influence of today’s teens and twentysomethings over consumer industries mean beauty brands face a fast-changing challenge to adapt their businesses — from marketing to pricing strategies — to remain attractive to this hugely discerning cohort.
The make-up wunderkind and BoF 500 cover star is growing a beauty brand that’s less about prettification and more about ‘world building’ for a generation that grew up with the speed and fluidity of the internet.