- Sales Intelligence: Cosmetics
- Posts
- Weekly Newsletter - 08.29.2024
Weekly Newsletter - 08.29.2024
Beauty Brands Innovate with E-Commerce for Broader Reach
E-Commerce
The beauty industry is undergoing a transformative period, with brands like ColourPop, Smashbox, Curology, and Dr.Jart embracing new e-commerce platforms to reach tech-savvy consumers. ColourPop's debut on TikTok Shop exemplifies the power of social commerce, tapping into TikTok's vast user base to drive sales. This move underscores the importance of agility in production and distribution, as rapid product launches become the norm.
Smashbox's expansion into Amazon's Premium Beauty Store highlights the significance of major e-commerce platforms in reaching a broader audience. By offering exclusive sets and leveraging Amazon Prime's fast shipping, Smashbox aims to make high-quality products more accessible. This strategy reflects the growing need for brands to align with popular platforms and offer unique products to stand out in a competitive market.
Curology's partnership with Amazon marks a shift from subscription-based models to more flexible purchasing options. This move emphasizes the importance of convenience and speed in today's e-commerce landscape, as consumers increasingly value fast and reliable delivery. By making its dermatologist-designed products more accessible, Curology aims to reach a wider audience.
Dr.Jart's entry into Amazon's Premium Beauty Store showcases the growing influence of K-beauty in the US market. Integrating digital content like Skin-a-gram videos into the shopping experience highlights the importance of engaging and educational content. These strategic moves by leading beauty brands signal a dynamic and digital future for the industry, presenting both challenges and opportunities for manufacturers and suppliers to innovate and thrive.
Retail Insights
The beauty and cosmetics sector is booming, driven by five key factors: the enduring lipstick effect, growing beauty communities on social media, the rise of product dupes, millennial spending power, and the influence of Chinese-associated e-commerce giants. These trends highlight increased consumer engagement and spending in the industry.
Beauty Industry
The beauty industry is experiencing moderated growth post-pandemic, with prestige beauty continuing to thrive. Experts predict sustained consumer interest in high-quality, innovative products, despite economic uncertainties. The ""lipstick index"" may be less pronounced, but the sector's resilience and evolving consumer preferences ensure ongoing opportunities for growth and innovation.
Business Performance
Coty's annual sales rose by 10% to $6.1 billion, driven by prestige products. However, net profit plummeted to $76.2 million due to unfavorable comparisons and share value declines. Despite this, Coty remains optimistic, forecasting 6-8% sales growth for the next fiscal year.
Business Trends
Perfume sales have surged post-pandemic, showing double-digit growth and reaching $64.4 billion globally. The trend is driven by increased self-care and a shift towards premium products, especially among younger consumers. Despite potential limits, the market remains robust, with prestige fragrances outperforming mass-market options.

Sales Intelligence is a Contentive publication in the Sales & Marketing division