Weekly Newsletter - 11.20.2024

SPONSORED BY

How Streamlined is your Training? Find out with this free Quiz!

Picture this: Your top beauty advisor is giving a client a personalized skincare consultation when a new team member interrupts, asking about product ingredients. Now, instead of closing the sale, they’re stuck explaining product basics. 🛍️

Sound familiar? This scenario is all too common, and it’s costing more than just time. When experienced staff are side-lined to train newbies, companies often see up to a 30% drop in productivity (Gartner, 2023). It’s a hidden cost that affects both sales and customer experience.

But there’s a better way. Scenario-based training engages new hires in practical, real-world situations without pulling senior staff away from what they do best—delighting customers and driving revenue.

Curious if your onboarding approach needs a refresh? Take Hive Perform's free assessment to get tailored insights on how to streamline the process and keep your sales floor focused on what matters.

"Walgreens Boots beauticians using Hive Perform exceeded their sales targets by 147%”.

INDUSTRY INSIGHTS 🌐

Beauty Market Thrives with Holiday Season Growth and Consumer Optimism

The U.S. prestige beauty market is on the rise, growing 7% to $22.8 billion, while mass market sales saw a modest 2% increase, according to Circana. Makeup is thriving, with lip products like tinted balms and oils driving a 21% increase in dollar sales. Blush sales are also booming.

Mid-range skincare brands are outpacing the prestige alternatives, growing six times faster as consumers seek more affordable options. In haircare, the prestige category grew 8%, driven by hair wellness products and e-commerce. Fragrance sales jumped 14%, fueled by demand for higher concentrations and smaller sizes.

With the holiday season approaching, consumer optimism is high, and planned spending is up 2%. Beauty products remain a top gift choice, especially for households with children, reflecting a focus on indulging Gen Alpha. Social media continues to shape beauty trends, potentially boosting holiday sales.

The industry’s ability to balance affordability and luxury, paired with digital innovation, positions it for a strong holiday season. The dynamic interplay of consumer preferences and market trends will define its trajectory in the coming months.

Strategies to Bridge the Innovation Gap in Beauty

In beauty, innovation isn’t optional—it’s essential. Brands that focus on new products or enhancing existing ones are twice as likely to boost sales, according to NIQ. Success hinges on aligning innovation with trends like sustainability, personalization, and inclusivity.

Consumers demand transparency and eco-friendly practices, while TikTok’s rise blurs the line between influencers and experts, shaping buying decisions. Tailored solutions addressing aging, acne, and menopause are driving market evolution, pushing brands to meet individual needs.

Beauty Industry's Economic Impact and Resilience Amid Challenges

In 2023, the beauty industry generated $94.36B in U.S. sales and employed 4.6M people. Despite challenges like inflation and supply chain disruptions, the sector remains resilient, with global revenue set to hit $648.6B in 2024.

Consumers are seeking affordable luxuries, driven by the "lipstick effect," while brands adapt through near-shoring operations to stabilize supply chains and cut costs. Private equity investments and strategic innovations signal confidence in the industry's growth potential.

INDUSTRY NEWS 📰

MAC Cosmetics: The Fine Art of Knowing Your Audience 🎙️

Understanding the beauty industry's dynamics is key for brands like MAC Cosmetics, which prioritize inclusivity and innovation. On The Speed of Culture podcast, Andre Branch, SVP and GM of MAC Cosmetics North America, highlighted the brand’s focus on staying in tune with evolving consumer behaviours. Inclusivity, diversity, and sustainability are central to MAC’s identity, driving genuine brand building and cultural relevance.

MAC adapts to a fast-changing market by addressing consumer demands, such as the Gen Z-favoured relaunch of the Squirt Gloss Stick, blending nostalgia with modern appeal. By refining its channel strategies, MAC engages digitally native Gen Z and Alpha audiences through TikTok and Instagram while maintaining its retail footprint.

At its core, MAC combines innovation and inclusivity, introducing cutting-edge products and digital experiences like AR shelves to boost engagement. Collaborations with cultural icons, such as Rosalía, reinforce artistry and cultural connection, solidifying its leadership in the beauty industry.