Looking at Social Media Trends
According to the data and analytics company GlobalData big beauty companies are inspired by innovations that have been popularized by independent brands. The company’s latest report revealed that these key trends are driven by social media platforms, environmental issues as well as niche communities and are shaped by an increasing consumer demand for products that reflect their lifestyles and ethics.
Trending on Social Media
As found in a survey by GlobalData, Generations Y, Z and X are most influenced by brands’ trending social media pages and products. For example, in the company’s Q3 2019 survey, 80 percent of Generation Y said they were interested in products that are trending on social media, followed by Generation Z (73 percent) and Generation X (65 percent). In comparison, only 24 percent of the Silent Generation said they were interested in such products.
Authentic and Agile
GlobalData further states that young consumers mostly rely on indie brands because they are seen as authentic and agile, connecting with consumers in a unique way. Thus, large legacy brands, who are struggling to reach younger consumers could use acquisitions as a way to connect with a new audience and continue to grow. In 2019, there were 115 completed mergers and acquisitions (M&As) in the beauty space – one of them being Shiseido’s acquisition of indie American brand Drunk Elephant for US-Dollar 845 Million in October 2019.
Personalization is the key
Another key component to indie brands’ success is the potential for a tailored service or product. A survey by GlobalData found that 89 percent of global consumers said they are often influenced by how tailored a product or service is to their personality and lifestyle. According to the data and analytics company personalization is also highly relevant in the strongest performing category—skincare. Skincare products are also used as part of customers’ personalized wellness rituals as moments when consumers can spend time taking care of themselves.
Source: GlobalData, photo: Adobe Stock / twinsterphoto