The assortment of success factors driving global cosmetics sector growth has come from analysis conducted by GlobalData. The industry analysts have dissected market data in relation to changes with market share, and such information has been used to identify the leading players.
The research indicates that premium beauty and cosmetics brands are generally expanding their market share as well as sales revenues. For those firms that are successful, this has been achieved with boosting appeal with millennial consumer. Part of this appeal centers upon innovation, in terms of product portfolios, and part of the growth relates to reconfigured Internet presence.
Specifically, with the online presence, successful companies have produced stronger digital platforms for their brands. This includes offering multi-channel experiences. Media commentator Rosanna Ryan has said in relation to this: “Social media channels are the perfect tool to provide this inspiration. Beauty companies should make the most of their already existing customer base to gather curated content for their channel.”
In terms of successful companies, GlobalData points out that Estée Lauder has recently reported healthy fourth quarter results. These results are driven by improved sales growth. Here the net sales increase is 14 percent, assisted by several new product launches. The health and beauty company has also acquired several competitors. In terms of the demographic factor, the French firm has increased its appeal amongst younger consumers.
A second firm, the competitor L’Oreal also declared a strong performance with its luxury brands, including Lancôme and Giorgio Armani. Overall growth has been 13 percent in terms of revenue.
Aleksandrina Yotova, who is the Consumer Analyst for GlobalData, stated: ‘‘This highlights consumers’ change in attitude towards beauty products in general.”
In terms of the main drivers, Yotova explains: “Travel retail has helped fuel growth at the company in 2017, as well as the successful use of video-bloggers and marketing to make-up loving millennials.”
Going forwards the main brands are expected to continue to target millennials via a strong product engagement plus a renewed digital presence.