Key Marketing Trends for Beauty Brands in 2023
If we look at the worldwide figure, the beauty and personal care segment has ringed in US $528.60bn worth of revenue in 2022. This is a staggering number and if we look at the prediction for the next 5 years (2022-2027), this segment is expected to grow at an annual rate of 4.64 %. These numbers indicate that the beauty and wellness industry is a massive market.
Having said that, we cannot ignore the fact that it is also a very competitive market. Besides premium global brands like Mac cosmetics, L’oreal, and Sephora leading the beauty chain, home-grown names like Nykaa cosmetics, Biotique, Colorbar, and Mamaearth have disrupted this segment completely in the last decade.
And the story doesn't end there. New players are also being added to the game each year with several beauty influencers launching their own very makeup line or wellness products. Many of them are credited for creating top-notch, luxurious product lines with an affordable price tag.
Given the competitive nature of the beauty industry, marketers have to be innovative to keep the demands of their products going. Brands have to be on their toes and try out new and innovative strategies to acquire new customers and retain existing ones. We also know that the beauty industry is always a step ahead in adopting tech innovation and implementing disruptive marketing strategies.
Here are some key questions that every marketer should be aware of -
How sophisticated will the marketing game get?
What are the new marketing trends beauty companies are expected to follow in 2023?
We have summarized the answer to these questions in the following five pointers -
#1 Personalized communication
With the proliferation of data and technology, brands are now capable of delivering personalized experiences to their customers. Most customers are already familiar with this experience and want brands to keep offering them the same.
As per an Accenture report, 75% of consumers are most likely from brands that are offering customized online experiences.
Based on past purchase history, beauty brands can recommend personalized product recommendations to customers. This gives out the message to the customer that brands are aware of their preferences and thus enables them to form a long-standing relationship.
In 2023, there will be greater adoption of AI technology in creating what is now known to be called “content intelligence.” Making sense of a large pool of data and using it for delivering meaningful communication with the customer is going to grow and get better.
#2 Niche Collaborations with Beauty Influencers
Influencer marketing will continue to be a powerful tool for beauty brands on social media platforms like Instagram in 2023. However, it will get more niche. For instance, beautify brands are going to focus more on tieing up with influencers who have a niche audience.
They will be more likely to collaborate with influencers who are promoting the cause of inclusivity and body positivity. To launch an effective campaign, brands will have to work with influencers who align with their brand value and reach their target audience.
There will be a greater emphasis on authenticity and transparency to avoid alienating the audience.
#3 Emphasis on sustainable and ethically sourced products
Today, the consumer not only wants high-quality products which are good for their skin and health but is also interested to know how the product has been sourced. Consumers are becoming increasingly conscious of the environmental and ethical impacts of their purchasing decisions.
Beauty brands will differentiate themselves by being more transparent about how the products are sourced, packaged and promoted. This information will be an integral part of the brand marketing communication across verticals and social media channels.
#4 Virtual Experiences will get better with AR (Augmented Reality)
The pandemic may have pushed customers to make online purchases of beauty products, however, if we consider the statistics, consumers still prefer the in-store experience over the online experience when it comes to purchasing makeup and skin care products. A logical explanation for this is that at a store, the customer has the luxury to try out the products in person.
Any retail store will have sample products on display and the customers have the freedom to physically test the product on themselves before purchasing.
Unfortunately, e-commerce retail does not offer the same experience. But a shift can be expected as beauty brands are now looking to incorporate AR technology that will allow customers to get online consultations, virtual make-up and skin care classes and even virtual try-on technology for products.
With the assistance of AR technology, customers will be able to try out the products virtually, especially make-up products like lipstick shades, make-up base, foundation, nail paints and highlighters etc.
#5 Content-Driven Marketing Communication
We live in an age when content consumption is at its highest and not showing any signs of slowing down. For effective marketing communication, beauty brands will have to work with social media influencers who are known to create engaging and hard-hitting content.
This could include -quizzes, video tutorials, polls or gamification of the marketing campaigns. A solid content-driven marketing plan helps create a more immersive and engaging experience for the audience and can lead to increased brand loyalty.
Summary - The right things to do -
To stay ahead of the competition and effectively engage with their customers, beauty brands can focus on the following -
- Work with niche social media influencers
- Offer sustainable products and adopt ethical practices
- Focus on online and virtual experiences with AR
- Diverse representation
- Create interactive content
To keep up with these trends and adapt to the changing needs and preferences of the customer, galleri5 has a powerful creator stack that will help brands compellingly reach their marketing goals.