According to Edited, a retail analytics firm, the worldwide beauty industry currently values $532 billion and is predicted to keep growing in the near future. The rising popularity of social media platforms is being considered one of the biggest influencers in the industry’s growth.
These days, vloggers active on Instagram and YouTube are making loads from sharing beauty tips and tutorials and reviews of their favourite brand of cosmetics. The research showed that many giant cosmetic companies are shunning traditional marketing techniques in favour of social media influencers and brand ambassadors.
Now, social media platforms are themselves evolving; the latest enhancement is the feature which lets people shop directly from there. For instance, the Shop the Look Pins app by Pinterest and the Shopping app of Instagram lets users purchase a product they see on the app, there itself, without having to meander to the product brand’s website.
The data given by Edited also revealed that retailers, who previously did not offer beauty products, are now offering these to augment their sales. Take the case of H&M, which raised the assortment of beauty products at its UK stores by 94.8% in 2018–19. Similarly, the number of beauty products on offer by e-commerce firm, Net-a-Porter, increased by 26% during the same period.
“Brands are realising that when tapped properly, the beauty sector can be a lucrative one.”, the report said.
Another factor in the sector’s growth is the cost of products that is designed to lure people from different social classes. For example, H&M offers wet wipes for $2 and leather makeup bags for $45. Edited further mentioned that as companies become more aware of what millennials want, they will be able to target potential customers better. “The beauty industry is becoming increasingly dominated by millennials, who are willing to spend on good-quality products, and this knowledge is utilised with targeted price points.”, Edited stated.