- Ecomdigest Personal Care
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- Ecomdigest Personal Care - 08.22.2024
Ecomdigest Personal Care - 08.22.2024
PLUS: How TikTok helped Refy Beauty achieve 3X return on ad spend
Specialty Bites 🍪
RETAIL INDUSTRY
Amazon's Beauty Takeover: A New Era for Retailers
Amazon's transformation from a prestige beauty pariah to a potential savior is nothing short of remarkable. Estee Lauder's Clinique launch on Amazon marked a pivotal shift, soon followed by Too Faced and Bumble & Bumble. Estee Lauder's CFO, Tracey Travis, highlighted Amazon's potential as a significant distribution channel. L'Oréal's Luxe division led the way with Lancôme, and brands like Kiehl's, IT Cosmetics, and Ralph Lauren Fragrances quickly followed. In 2023 alone, Amazon sold over a billion beauty products in the U.S., boasting more than 100,000 brands in its beauty store.
Amazon's strategy focuses on attracting new customers and expanding shopping opportunities, with Morgan Stanley predicting it will surpass Walmart as the largest beauty retailer by 2025. This poses a greater risk to Ulta Beauty than Sephora, given Ulta's higher brand overlap with Amazon. Ulta's CEO, Dave Kimbell, emphasized the importance of integrating in-store and online shopping to boost customer loyalty and spending.
Department stores like Macy's are feeling the pressure, with plans to close 150 stores by 2026. Meanwhile, Hudson's Bay Co.'s acquisition of Neiman Marcus, with Amazon as a surprise investor, underscores Amazon's growing influence. Experts suggest that non-Amazon retailers focus on storytelling, newness, and omnichannel success to compete effectively. While Amazon excels in infrastructure, traditional retailers can leverage exclusivity, loyalty programs, and unique shopping experiences to stay relevant.
BUSINESS GROWTH
E.l.f. Beauty's Meteoric Rise in the Beauty Industry
E.l.f. Beauty, celebrating its 20th anniversary, is thriving with $1 billion in sales and strong Gen Z support. Under CEO Tarang Amin, the company excels in innovation, international expansion, and strategic acquisitions. Despite market challenges, E.l.f. remains optimistic about future growth in cosmetics and skincare.
BUSINESS NEWS
Lab Series Debuts on Amazon Premium Beauty Store
Lab Series debuts in the U.S. Amazon Premium Beauty store, offering high-performance skincare solutions for men. Prime members benefit from fast, free shipping. The launch includes educational content and shoppable recommendations, empowering men to build personalized skincare routines. This marks an exciting new chapter for the brand.
Performance Platters 🍽️
SOCIAL PLATFORM
Why TikTok is a Must-Invest Channel During Peak Periods
TikTok has emerged as a powerhouse for eCommerce, especially during peak shopping periods like Black Friday and Cyber Monday, with brands now allocating an average of 10% of their marketing budgets to the platform.
Refy Beauty's 2021 Black Friday campaign on TikTok showcased impressive results, reaching over 2 million users and achieving a 750% increase in organic revenue. The brand's multi-channel approach, centered on TikTok, helped surpass sales targets by 20% and delivered a nearly 3X Return on Ad Spend (ROAS).
The key to success lies in implementing a full-funnel strategy that engages consumers at every stage, from awareness to conversion, ensuring sustained growth beyond peak periods. TikTok's broad reach and engaging content format make it ideal for attracting new customers, with a significant percentage of purchases coming from first-time buyers.
As brands prepare for upcoming high-traffic events, how can they develop a comprehensive TikTok strategy that leverages the platform's unique ecosystem to maximize both short-term sales and long-term brand engagement while accurately measuring TikTok's true impact on their marketing efforts?
DIGITAL MARKETING
Pinterest: Gen Z's New Shopping Hub for Brands
Gen Z is increasingly using Pinterest for shopping inspiration, making it a crucial platform for brands targeting this demographic. Pinterest's user base is growing, with Gen Z being the fastest-growing segment. Brands like American Freight and Bis are leveraging Pinterest's features to boost engagement and sales.
Industry Appetisers 🥨
BUSINESS NEWS
Victoria's Secret Appoints New CEO Hillary Super
Victoria's Secret appoints Hillary Super as CEO, effective September 9, succeeding Martin Waters. Super, with extensive retail experience, aims to drive growth and innovation. Interim CEO Timothy Johnson reports improved Q2 results, highlighting successful product launches and disciplined inventory management, marking the first operating income growth since 2021.
TECHNOLOGY & BEAUTY
Dyson's Next Beauty Revolution: Hair Care Innovation Unveiled
Sir James Dyson's latest venture into beauty with Chitosan hair products and the Airwrap i.d. device exemplifies his blend of art and science. Dyson's relentless innovation, from vacuum cleaners to hair care, continues to disrupt industries, driven by a commitment to improvement and a £500 million investment in future technologies.
Ecomdigest is a Contentive publication in the DTC Ecommerce division