The skincare business has been growing rapidly, which means increased competition and more fragmentation. Brands that can’t keep up with consumer demands and industry trends risk losing their grip on this crowded market.
New brands make an impact
The continuing rise of beauty-friendly social media networks like Instagram has given previously unknown brands a platform to reach a much wider audience than ever before.
The skincare market is becoming more fragmented due to new arrivals that chose a digital-first strategy to reach tech-savvy millennials and Generation Z. These newer brands choose to establish an emotional connection with their audience. They are positioning themselves as more accessible and friendly than the more traditional brands.
This trend in the skincare business spans all price points. It is relevant for premium luxury brands, as well as the more accessible brands you can find in drug stores.
Consumers increasingly trust the opinions of friends, family, and peers over the claims of multinational organizations and marketing companies.
Sites like TripAdvisor popularized the importance of reviews, and this trend has made its way into the skincare business. Customers are spending more time reading reviews before buying products. More informed consumers are willing to question brands to ensure they are fully transparent about everything from ingredients to manufacturing processes. The influence of “skin-telligent” customers also means that expectations are high. Consumers will quickly turn away from a brand if they are not happy.
As more and more consumers place their trust in reviews, they want more than just an Instagrammable product with pretty packaging that is used by an industry influencer.
Consumers want to see results from the skincare they use. Therefore, increasingly more consumers are willing to do the research to find out what the hype is, and which ingredients really work. That’s why 'Vitamin C' and 'Hyaluronic Acid’ continue to be two of the most-searched anti-aging skin-care terms.
Want more information about the skincare business?
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This blog post is for educational purposes only.