Weekly Newsletter - 12.18.2024

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PODCAST OF THE WEEK 🎧

Join Ken Lundin and Derek Baer on this week’s episode of The Candid Sales Rep Podcast for a no-nonsense conversation about what it really takes to drive consistent sales performance.

🎙️ What you’ll learn in this episode:

• The power of accountability: Why tools are helpful, but strong leadership is essential.

• Coaching that matters: How managers can bridge the gap between strategy and execution.

• Building trust: Breaking down barriers to inspire motivation and long-term growth.

Hive Perform is proud to bring you candid, practical advice from sales leaders who know what works. Derek Baer shares his experiences and actionable insights that sales managers and reps can apply today to improve team performance.

👉 Key Candid Moments:

• 00:00 – Meeting Derek Baer

• 08:29 – Why accountability is the secret sauce for success

• 29:35 – The truth about motivation and driving growth

INDUSTRY INSIGHTS 🌐

In 2024, US consumer optimism reached its highest level since the pandemic, driven by low unemployment, job growth, and rising wages. However, this optimism translated into increased spending, as consumers remain cautious, particularly in discretionary and luxury categories. This trend reflects a broader shift towards financial prudence and long-term stability, despite the holiday season typical spending surge.

The ConsumerWise survey highlights that while optimism rose across demographics, spending intentions remained subdued. Notably, Gen Zers showed increased pessimism, contrasting with the optimism of older generations. This cautious approach is evident in the persistent trend of trading down, where 74% of consumers opt for lower-priced goods or delay purchases, indicating a stickier behavior than anticipated.

Interestingly, high-income consumers, who typically have more disposable income, reported a decline in their intent to splurge. This suggests a cautious approach even among those with financial flexibility. The data reveals a paradox: rising optimism coexists with restrained spending, highlighting a collective shift towards mindful consumption and economic security amid uncertainties.

TikTok Ban Threatens US Cosmetics Industry Social Commerce Strategies

The potential TikTok ban in the US poses significant challenges for the cosmetics industry, particularly for brands that have leveraged the platform for marketing and sales. The US Court of Appeals for the DC Circuit decision, which supports the Protecting Americans from Foreign Adversary Controlled Applications Act, could lead to TikTok divestment or a complete ban due to national security concerns. This ruling, while addressing security issues, raises questions about freedom of expression, with advocacy groups arguing it restricts speech unrelated to security.

For cosmetics brands, especially smaller ones, TikTok has been a vital tool for cost-effective marketing. Analyst Sunny Zheng from Coresight Research highlights that the platform democratized marketing, allowing brands to reach audiences without hefty budgets. A ban could disrupt this dynamic, increasing customer acquisition costs and reducing engagement. Brands are advised to diversify their strategies, exploring alternatives like Instagram Shopping and YouTube Shorts, and enhancing direct-to-consumer websites to maintain their market presence.

The potential ban may also drive innovation, encouraging brands to develop AI-driven personalization tools and focus on sustainability. Larger platforms could offer advanced analytics to aid adaptation. This situation underscores the risks of relying on a single platform, prompting the industry to adopt diversified strategies for a more resilient future. As legal proceedings continue, cosmetics manufacturers must stay informed to navigate these changes effectively.

INDUSTRY NEWS 📰

L’Oréal Sells Cosmetics Brands Decléor & Saint-Gervais Mont Blanc to Cospal

L’Oreal has sold its cosmetics brands Decléor and Saint-Gervais Mont Blanc to the newly formed French group Cospal, led by Matthieu Lesieur. This strategic move aims to rejuvenate these iconic brands, positioning Cospal as a significant player in the beauty and wellness market.

Tatcha Expands Reach: Skincare Rituals Now at Ulta Beauty Nationwide

Tatcha expands its reach by partnering with Ulta Beauty, making its skincare products available in over 1,400 stores and online by January 2025. This collaboration emphasizes self-care and aligns with Ulta’s values, supporting education through Tatcha Beautiful Faces, Beautiful Futures fund with Room to Read.

Native Unveils Exciting New Personal Care Collaborations with Jarritos and Dunkin

Native introduces two new personal care product lines through collaborations with Jarritos and Dunkin. The Jarritos collection, inspired by Mexican flavors, is exclusive to Target, while the Dunkin line, featuring donut-inspired scents, is exclusive to Walmart. Products include deodorant, body wash, and more, offering unique, themed personal care options.

Sephora 2025 Accelerate Program Empowers Diverse Beauty Start-Ups for Success

Sephora 2025 Accelerate Program supports BIPOC beauty brands, offering mentorship, resources, and potential retail opportunities. The initiative aligns with the Fifteen Percent Pledge, promoting diversity in the beauty industry. Selected brands receive comprehensive support, enhancing their growth and market presence, reflecting Sephora’s commitment to empowering diverse entrepreneurs.

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