At Okendo we know that beauty is big business. With more access to new audiences than ever before and the continued release of fresh revenue streams from new digital ad channels, the beauty industry saw a global rise from $483 billion in 2020 to $511 billion in 2021.
Leading the pack are the savvy direct-to-consumer (DTC) brands. Brands that are responsive, highly attuned to their customers’ needs, quick to market, and endlessly adaptive, are excelling within the beauty vertical.
With health and beauty accounting for 32% of the global share of product-related social media actions and the rise of online shopping during the global pandemic, it’s easy to see why the rise of social shopping has propelled beauty brands towards success.
This is not to say that the beauty space is without its challenges. Opportunity breeds competition and those that can’t differentiate themselves often get left behind.
That’s why Okendo has 9 trends that just make sense for beauty brands surfaced from working with 5,500+ high-growth consumer brands.
1. Clear, cohesive messaging
It’s important that your online presence communicates a clear understanding of your products, brand, and mission; not only in your online store, but also across all social media channels. Excellent beauty brands are producing high-quality, insightful content on their blogs, social accounts, online store, and podcasts.
2. A quick and integrable tech stack
If you’re in the Shopify ecosystem, there are a myriad of tools that ensure your customers are enjoying a positive shopping experience. Tools like Okendo, Loyaltylion, and Klaviyo can link reviews, loyalty, and email to create a better experience and increase customer speed. Make sure your tool stack easily integrates with each other so that you can move easily and swiftly across each system.
3. A successful subscription model
Easily allowing your customers to renew depleted products at an optimized frequency is key. Brands should concentrate on an elegant purchase experience and utilize a solid customer portal that allows post-purchase customers to manage subscriptions with ease. Beauty brands can gain so much from the convenience, community, and connection that a well-structured subscription model can offer. Seeking out intelligent reviews and systems that allow users to leave honest feedback can accelerate the usage of customer subscriptions.
4. Optimized site speed and navigation
It’s never been more crucial for brands, especially those that are targeting younger demographics, to have a flawless, fast online retail experience. Moving towards the use of more try-on technology, personalization, quiz tech, and relevant reviews help differentiate between natively digital brands and those struggling to keep up.
5. Embracing the power of a unique origin story and community
Beauty brands that can communicate a compelling origin story and their brand’s values stick out. Consumers like a story that they can resonate with. Building a wonderful community of customers and advocates is powerful, and this is often reflected in data-driven reviews and user-generated content (UGC). As trends shift toward natural products, personalization through the form of customer questionnaires and style quizzes help keep a pulse on your customer’s needs.
6. Building a brand membership club or loyalty program
Brand membership clubs and loyalty programs are a great way to keep customers engaged. Beauty brands are leveraging exclusive content, products, and discounts to their most loyal customers to build brand loyalty and reduce churn. Membership clubs also create natural customer touchpoints like tutorials or calling customers to share their product tips and applications. Couple this with exclusive first access to products and semi-annual membership sales, and you’ve got more ways to keep your customers engaged and coming back.
7. Strong content that promotes UGC
Brands that are doing it well use their social media channels to perfectly curate, engage, and publish content to maintain interest and increase engagement in their online store. With tools like Okendo that allow you to pull customer images to a shoppable Instagram gallery housed on their website, new consumers can see the products come to life. Showcasing this content ensures greater authenticity and builds trust.
8. Focusing on a customer-centric approach
Brands that are truly driven by their customers stick out against the rest. From virtual makeup try-ons to how-to tutorials and virtual zoom consultations, beauty brands should give the same personalized experience online as consumers come to expect in-store. Cultivating a community of loyal fans and continually engaging with them by requesting feedback, giving special perks, and asking them to share UGC on social media can make such a difference by keeping a close pulse on your market.
9. Eco-conscious of their product and impact
Now more than ever, consumers – especially Gen Z – are increasingly conscious of their impact on the environment, and how they purchase beauty products is no different. This includes more transparency when it comes to ingredients in their products, more clarity over eco-friendly claims, and more sustainable packaging.
From a strong focus on customer experience, and access to increasing levels of personalization, to the cultivation of communities that foster loyalty and generate high-quality UGC, the future of the beauty space looks bright.
For more beauty trends by Okendo and other e-commerce experts check out ‘Beauty Tutorials: Top Trends for Beauty Brands in 2022’