The Marketing Strategies in the Cosmetics Industry

Cosmetics are becoming of more importance in daily life. Currently, the global cosmetic market was valued to have “a worth of 532.43 billion USD in 2017 and is estimated to reach 805.61 billion USD in 2023” (Wood,2018). In such a high valued market with a large number of competitors, there are a few important factors that determines the success of cosmetic brand in today’s economy.

First of all, digital marketing has become something essential in the cosmetic industry. Digital marketing is not just about utilizing social media to increase exposure. Recently, cosmetic retailer has found new ways to engage consumers in-store and online. One of them is using Augmented reality (AR). It is a technology that is being used by many retailers to enhance the experience of trying on new products. For instance, Coty, a multinational beauty company founded in New York that produces many cosmetic, skincare, fragrances and styling brands, introduces “Magic Mirror “at its store in Paris. While the concept of AR-powered cosmetics marketing had already been used by a few other retailers like Sephora and Loreal, Coty's version is a little bit more unique. Using computer vision, “the Magic Mirror can recognize products from the company's Bourjois Rouge Velvet Lipstick collection when customers hold them up in front of the camera” (Palladino,2018), and then shows the costumer what the makeup looks like on their face. Furthermore, it also recommends and previews eye makeup and blush that match the customers’ skin tone then allow them to take a picture and bring it home. There are quite a few advantages to using digital technology like AR. To start off, this kind of technology give customer an opportunity to get detail information on products. Next, it lets customers have fun with trying out makeup in store without going through the mess of having physical products on hands or clothes. Most importantly, it helps elevates the in-store experience in many ways and creates a strong emotional connection between brands and consumers.

With countless new cosmetic products coming out every year, cosmetic “packaging” designs are another important factors to driving sales in a retail environment. For the most general, the visual of your product will have a great impact on consumer’s buying decision. The human eye is naturally drawn toward areas of high contrast, so incorporating black and white or bright, contrasting colors can help get consumers’ attention. Using different texture like special finishes with an otherwise smooth surface can be used to make the packaging stand out as more luxurious or unique. In addition, sometimes cosmetic brands choose to stand out with a uniquely shaped rather than just a simple cardboard backing with a clear layout and clear plastic to show off the product itself. Last but not least, the most important aspects of product packaging are its function. Smart packaging will allow consumer to continue purchase your product. Nowadays, people are usually busy with going to work, to school, to meeting etc. To solve this problem, single sized or small products can really come in handy with a busy lifestyle. For instance, a Korean make up brand named SepBeauty, they can up with “a makeup kit in the size of a little Lego building bricks” that is small enough to fit in a pocket (Tsai,2018). The 4 in1 cosmetic case combines a mirror, rouge, eye shadow and lipstick/lip balm and it comes in three different color sets. The main feature of this product is to increase portability especially for office workers, so ladies don’t have to carry a large cosmetic bag. In short, not only the color of package has to be eye-catching, its shape and functions also can help retain loyal customers as well as attracting new ones.

Finally yet very important, personalization/customization for customer is a business necessity in the cosmetic industry since “Beauty is a very personal thing and people want to choose what looks good” (Raphael,2016). 3D printing of cosmetic is currently one new invention that’s under development which holds great strength is personalization. As for example, Mink, a startup company in 3D printing has already taken on this challenge. The company has been developing a desktop printer that can print makeup such as lipstick, lip gloss, eye shadow and blush. In the future, it will also be able to print foundation and face powder. The company claims that the printer can turn any camera, phone or laptop into a makeup printing station. It targets “women ages 13 to 21 who have not yet developed firm brand loyalty” (Borgna,2014). For now, the printer is only available through invitation. One greatest advantage this technology bring is “the practical ability to create something tied to personal appearance and expression would transform the relationship that people have with cosmetics companies” (Gonzales, 2016). In the long run, personalization will be relevant to cosmetic brands being more sensitive to consumer needs, as beauty needs change over time as people age and trend changes. It could be a significant marketing opportunity for those brands prepared to be more versatile to customer demand. On the whole, personalization, packaging design and digital marketing are all critical factors to success in the cosmetic industry. If a company takes into consideration of all these factors, not only they will be able to stand out in the competitive market, they will also be able to create an ideal world of beauty for consumer.