The Beauty Industry is Doing Something Right
April 18, 2017
The beauty industry is high-tailing it out of department stores. Can we blame them? Many established beauty brands built their market through department stores and concessions. As trends in social media and retail push people (mostly women) to be more beauty and health conscious, they’re willing to spend more. Much more. About $675 billion by 2020 to be exact. But there must be more to the beauty industry’s success than sending freebies to Instagram influencers, right?
That level of growth is admirable, and a deep contrast from the activity we’re seeing in big-box and department stores this spring. More shuttered doors and empty malls are indicative of the times, and beauty brands aren’t about to be dragged down by massive footprints and unrealistic overheads. So, they’re branching out and doing brick-and-mortar their way.
Freestanding cosmetic stores and concept boutiques are popping up everywhere, because these brands are seeing the model is a much better fit for their market, and their bottom line. In addition to giving them a level of control over the logistical aspect of running a retail store, including inventory and flow, it provides them the ultimate platform for an immersive brand experience. Department stores never allowed for the precision of personalized brand engagement. Freestanding stores and boutiques empower them to express their identity and build customer loyalty.
Loyalty is born from a deep connection and understanding of your customers. Beauty brands are creating relevant experiences and returning long-term, responsive relationships.
Making high-end cosmetics readily available through stand-alone shops and boutiques has pushed the beauty counter beyond department stores, and into previously untapped markets. Last year, the male grooming sector brought in billions of dollars, with no indication of slowing down.
All signs point to continued growth for the cosmetics industry. That means we’ll see their freestanding and boutique portfolio grow, along with complementary industries. Look for continued growth and innovation in beauty brick-and-mortar. To learn how you can implement an immersive brand experience in your brick-and-mortar store, fill out our contact form below.