Weekly Newsletter - 11.09.2024

Business Expansion

e.l.f. Expands Global Presence with Major Retail Launches and Market Growth

e.l.f. Beauty is expanding globally, launching in Germany's ROSSMANN, entering Sephora in Mexico, and growing in existing markets like the U.K., Australia, and Italy. This strategy, driven by consumer demand and partnerships with leading retailers, aims to make premium beauty accessible worldwide, reflecting significant year-over-year sales growth.

Beauty Retail

Ulta Beauty Lowers Sales Forecast Amid Decreased Consumer Spending

Ulta Beauty has reduced its sales forecast due to declining consumer demand amid higher prices and borrowing costs. The company now expects net sales of $11 billion to $11.2 billion, down from $11.5 billion to $11.6 billion. Increased competition and cautious consumer spending are key challenges.

E-Commerce

More Consumers Are Shopping for Beauty Products on TikTok

A recent NIQ report, in collaboration with TikTok, reveals a significant shift in consumer shopping behavior, with over half of respondents now purchasing beauty and other items via social media or live-stream platforms. This trend underscores the growing influence of TikTok Shop, an in-app commerce feature that combines the platform's engaging content with data-driven insights from NIQ.

Jacqueline Flam, SVP of U.S. Beauty at NIQ, emphasizes that understanding and measuring performance on TikTok Shop is crucial for brands to connect strategically with their audiences and drive meaningful outcomes.

Rachael Ryan from TikTok notes that the platform's blend of entertainment, personalized discovery, and authentic voices is driving unprecedented engagement and commerce.

Key insights from the survey include that
- TikTok users are 48% more likely to discover and purchase new products immediately compared to other platforms.
- 62% of respondents are familiar with TikTok Shop, and 68% are open to making purchases through it.
- 71% of users take off-platform actions after encountering a shopping ad on TikTok, and 2 in 5 users visit physical stores to purchase products discovered on the platform.

These findings highlight TikTok's pivotal role in shaping modern consumer behavior and e-commerce.

Beauty Retail

Canadian Beauty Market Offers Untapped Potential for Retailers

The Canadian beauty retail market presents significant opportunities despite challenges like higher taxes and strict employment laws. Brands like Sephora and Stripes are expanding, driven by consumer demand for innovation and inclusivity. Online shopping and strategic partnerships with established retailers are crucial for reaching Canada's diverse and geographically dispersed population.