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- Ecomdigest Personal Care - 09.05.2024
Ecomdigest Personal Care - 09.05.2024
Nicky Clarke joins NY Fashion Week, Unilever may sell two skincare brands, and how beauty brands can prepare for a potential TikTok ban
Specialty Bites 🍪
MARKETING STRATEGY
Retail Media Networks: Driving Growth at Sephora and Ulta Beauty
Retail media networks (RMNs) are revolutionizing the beauty industry, with Ulta Beauty and Sephora leading the charge. As digital customer acquisition becomes more costly, RMNs offer a lucrative alternative by leveraging first-party data to drive sales. Ulta's UBMedia, launched in Spring 2022, and Sephora Media are prime examples, providing brands with direct connections between ad spend and purchases. These platforms enable beauty brands to hyper-target customers, enhancing visibility and conversions.
Jacob St John, CEO of Navigo Marketing, emphasizes the importance of integrating Amazon, Ulta, and Sephora into a cohesive online retail strategy. He notes that consumer behavior is consistent across these platforms, making it essential for brands to manage them collectively. This approach optimizes ROI and ensures a seamless customer experience.
Emerging brands, often hesitant due to cost concerns, can benefit significantly from RMNs. By partnering with experts like Navigo, they can achieve high efficiency and ROI with strategic targeting. Retail media is not just for big brands; indie brands can also leverage these networks to stand out and grow.
Looking ahead, RMNs are expected to grow exponentially, with eMarketer forecasting a rise from $46 billion in 2023 to $109 billion in 2027. As Ulta and Sephora continue to innovate, the beauty industry will see increased competition and opportunities for growth through these powerful advertising channels.
Nicky Clarke partners with SFWRUNWAY for New York Fashion Week on September 11-12, 2024, in Brooklyn. The collaboration highlights inclusivity and innovation, featuring Nicky Clarke's professional styling tools. SFWRUNWAY will showcase diverse designers, including African, plus-size, streetwear, Latinx, and Black fashion pioneers, promoting creativity and cultural diversity.
INDUSTRY TRENDS
Celebrity Hair Care: A New Frontier for A-Listers
Celebrity-founded hair care brands, including those by Rihanna and Blake Lively, are entering a booming market projected to reach $93.74 billion in 2024. Despite mixed reviews and industry fatigue, these brands could thrive if they offer something unique and maintain authenticity beyond initial launch buzz.
Performance Platters 🍽️
PARTNERSHIP NEWS
TikTok x Amazon partnership - Shop While You Scroll
FOSPHA
In August 2024, TikTok and Amazon teamed up for a seamless shopping experience directly within the TikTok app. This timely partnership, coming just before the Q4 shopping season, leverages TikTok's massive user base and Amazon's e-commerce dominance.
But how will it impact brands?
A major challenge for brands is measuring the halo impact of social media interactions on Amazon sales, as Amazon's data exists in a walled garden and relies on a last-click attribution model, potentially overlooking external contributions that drives product discovery.
The partnership highlights the need for more holistic marketing measurement solutions as the line between social media and e-commerce blurs.
To learn more about the current measurement challenges and emerging solutions in this evolving landscape, read the full article here.
MARKETING TECHNOLOGY
B2B Marketers Embrace AI Revolution, Leading in Adoption and Innovation
B2B marketing teams are rapidly adopting AI and ML, with 25% using these technologies in production. Leading adopters, primarily in tech-savvy industries, face challenges like data privacy and talent gaps. Despite hurdles, AI enhances content generation and operational efficiency, with 81% using GPT models like ChatGPT.
Industry Appetisers 🥨
BUSINESS EXPANSION
Fresha Secures $31M from JP Morgan for Expansion
Fresha has secured a $31 million venture debt facility from JP Morgan to expand into new markets and enhance its AI-powered platform. This funding will help beauty businesses streamline operations and connect with more customers, offering subscription-free software and embedded payment processing.
Unilever is considering selling its Kate Somerville and Ren Clean Skincare brands, part of its Unilever Prestige division. This move follows significant internal changes, including leadership departures and job cuts, aimed at streamlining operations and focusing on core brands. Unilever has not confirmed these reports.
Ecomdigest is a Contentive publication in the DTC Ecommerce division