The ‘Lipstick Effect’ shows no signs of slowing.
An economic term originating from the health and beauty industry’s unwavering resistance to a drop in disposable income, the industry remains resilient as many experience drastic shifts in consumer behaviour.
We’re seeing recent trends continue to solidify themselves in the market, such as the desire for a true multi-brand shopping experience, with a wide range of products, price points, and producers available ‘under one roof’. Retailers such as Sephora are experiencing particularly successful periods due to wide scale investment across physical activations (opening their flagship UK retail store in London’s Westfield shopping centre), digital campaigns, sustainability efforts, and new partnerships with brands such as TikTok and Haus Labs by Lady Gaga.
Other trends we are seeing continue to gather pace include subscription services such as Glossier, the conscious movement toward more clean beauty and B Corps, and the rise of the indie brand. Where although L’Oreal dominates market share, particularly in Western Europe, consumer remain open to new brands, largely driven thanks to effective marketing, influencer, and WoM campaigns. A trend we’re further developing within a large number of our clients’ Sales and Marketing functions.
Legacy trends from Covid, such as the demand for ‘at home’ alternatives, are continuing to solidify themselves in the market. Many have successfully integrated technology into their products, with both new hardware and software. Software such as AI has revolutionised the shopping experience allowing for greater customisation, reduced lead times, and lower return rates, creating an overall improved customer experience.
Another factor continuing to drive considerable consumer and manufacturer decision making during Q1 was sustainability. The rise of B corps in the industry being a prime example, with our consultants supporting a number of client’s sustainability and ethics plans through much of Q2. Support ranges from consultations, talent management, vacancy management, up to full team builds, within NPD, HR, Sustainability & Ethics Specialists, and Sustainable Packaging, across Europe and the US in particular.
During Q2 of this year, our dedicated practice began a range of new partnerships, working on retained propjects with brands in the UK, France, and Australia, as well as supporting long-standing clients in the US.
Strong talent pipelines have been built to support a number of long-term projects in Q3, with a number of exciting Commercial, eCommerce, and Operations roles set to be released, and several interim contracts being managed by our practice.
Our consultants have attended both physical and virtual events at the beginning of the year, including an event in London, for female founders, discussing challenges in the market and supporting start-ups to multinational SME’s, as well as the Clean Beauty Awards, and conducting an MB Talks with Nordic Beauty Expert, Jennifer Carlsson.
If you’d like to discuss our support on a current or future role, or are looking for your next career move, get in touch with our dedicated Health & Beauty Practice today via hello@macgregorblack.com or by calling +44 (0)191 691 1949