Beauty is big business. A global sales powerhouse, sales of cosmetic products in the US alone topped $49 billion in 2020 so far – even with a global recession in the works. It seems that people simply aren’t prepared to cut back on their personal care spending, and that makes it potentially a highly profitable industry to be in. So if you’re a start up beauty brand entering the Cosmetics industry, wanting to connect with an audience, raise your profile and boost sales and improve the future of your business, what are the rules of play that you should be following?
Connect With The Right Retailers
While many small cosmetics brands have found success advertising through Instagram and a network of influencers, for most the real money comes when their brand gets picked up by a large retailer. Most small businesses need a distribution network to really hit the big time. However, you need to make sure the deal on the table is the right fit for your brand. Without the correct customer profile or the right marketing strategy, it’s still possible for brands to fail to make an impact, even after scoring a retailer deal.
Invest In Brand Building
A lot of the value of cosmetics comes from the hype built around them – so brand building needs to be a key consideration for anyone setting up in the industry. It’s literally a case of image being crucially important, certainly when it comes to drawing in new customers. The best way to begin is always with the customers themselves. Ask for feedback on every stage of the process, from naming, to design choices, product selections and sampling. Your brand needs to reflect what your potential audience wants to buy – and with social listening, focus groups, online surveys and member’s clubs, you can have a ready stream of opinion. Beauty fans tend to want to talk about products and opinions, so take full advantage of this.
Partner With Expertise
Working with the right labs and private label manufacturers is another huge pillar of success. These businesses have a wealth of experience that you should aim to tap into. Your business will be a network of raw ingredients suppliers, consultant chemists, and contract manufacturing labs. It’s very important that this interconnected supply chain all understand the end game and the values that you want your brand to have. When it comes to topics such as taking an ethical stance or having a particular research and development strategy, you will need the full buy-in and support of these partners to make it happen.
Become Data Driven
The amount of data in every sector available today means that you have the chance to create a beauty brand that is purely data-driven. Using an iterative process and lean manufacturing more akin to the principles of a tech start-up can allow you to really respond to ever-shifting market conditions, test out concepts and iterate a product, rather than going to market with everything fully formed. This approach allows you to evolve and optimize your brand, more closely aligning with customer preferences and remaining flexible to meet the challenges of doing business in an uncertain world.
