Appleton Finn’s Post

Amidst rapid economic development, China has become the largest beauty market by consumer population. The prestige beauty segment was worth around $17 billion in 2022 and is expected to expand at a CAGR of about 10% by 2027, with the overall beauty market in China expected to reach $96 billion by 2027.

Experiential is the way forward according to McKinsey & Company in this year’s State of Fashion beauty report. 📈 “Expanding through direct-to-consumer plays will be key to building or defending market share. One path forward for brands with sufficient capital is to develop physical experiential spaces.” “Customers want to see, test and smell beauty products before making purchases.” Creating experiences that appeal to the senses is a fail safe way to attract customers to brand activations. MAC Cosmetics and Debenhams executed this perfectly in Sook, Oxford Street by transforming the space into a pop-up Mac store where everything was made out of cake giving visitors the chance to taste their most loved products. 🍰💄 Many other leading beauty brands including Hydrafacial and OPI host experiential activations with Sook to connect with their customers in the moments that matter and build brand loyalty. If you would like to speak to one of Sook’s pop-up experts about hosting an activation for your brand, get in touch with us via our website today. #beautyindustry #sookspaces #spacetoconnect #https://lnkd.in/eB-DrMJ8

Are you following the shift in the market around beauty? Ulta projecting a slow down while Sephora is showing growth, especially in their Kohls partnership. While this is being poised as a position of luxury vs. core beauty, I think it runs deeper than that. I believe the perception of luxury is driving this shift. Customers are still looking to stretch their dollars with recent inflation still stinging, so it's more important to customers than ever that the purchases they make align with their perception of luxury goods. Discount retailers are selling out of luxury goods. The shopper is becoming savvier and we should all take note! https://lnkd.in/gDSjKZXT

Driven by self-gifting trends (evident by the most recent Valentine’s Day holiday) and the so-called “lipstick” effect during our stressed economic times, parent company LVMH is seeing stronger revenue growth for Sephora (its multi-brand retailer with wide audience × strong cash generation), and similarly, L’Oreal has benefited from a pre-pandemic increase of 40% in annual revenue despite Chinese markets plateauing. Both brands are benefiting from the tangibility of in-store traffic and sales, including Sephora’s store-within-a-store concept expansion with Kohls. Continuing to build on quality, exclusivity, and product integrity is critical (particularly a cautionary tale with the proliferation of arbitrage online), and forging stronger customer relationships to retain interest throughout digital channels while in enticing frequent visits in-store to test into and expand brand experience are the domain of strong loyalty programs, CX, and commerce innovation. #PublicisCommerce  #customerjourney https://on.ft.com/3T0YtdK

The markets for luxury fragrances are changing, and many brands are having a hard time keeping up. 𝐓𝐡𝐞𝐫𝐞’𝐬 𝐛𝐞𝐞𝐧 𝐚 𝐩𝐚𝐫𝐚𝐝𝐢𝐠𝐦 𝐬𝐡𝐢𝐟𝐭… Only a few years ago, the luxury fragrance market set the trends, and starstruck consumers eagerly followed them. Things look very different today. 𝐌𝐨𝐝𝐞𝐫𝐧 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬 𝐰𝐚𝐧𝐭 𝐭𝐡𝐫𝐞𝐞 𝐭𝐡𝐢𝐧𝐠𝐬: 1. A seat at the decision-making table. 2. A peek behind the curtain. 3. Two-way communication. They’re no longer content with the “alluring air of mystique” and rigid, inflexible communication models that defined so many luxury fragrance brands for so long. Far from being something to fear, this is a healthy and potentially highly lucrative shift – as long as brands know how to maintain brand control in this dynamic market. 𝐖𝐞 𝐜𝐚𝐧 𝐡𝐞𝐥𝐩 𝐛𝐲: • Working with you to predict future sales trends. • Using insights from data to market underperforming brands in previously unexplored ways. • Protecting your existing distribution channels. • Guaranteeing you keep control of your brand's image and reputation. • Offering full transparency into our progress. Contact us for help with your brands. #Marketing #Distribution #Fragrances #Perfume #Omnichannel

Exciting times ahead for brands ready to adapt and embrace this new paradigm! We're here to support you every step of the way with tailored strategies and insights to navigate the evolving landscape successfully.

This is such an important topic to discuss. I feel the 3 most significant problems associated with losing brand control when diversifying are probably: 1. A negative impact on your overall brand image 2. An erosion of your brand’s perceived value 3. Confusion among consumers about your brand’s identity and positioning in the market.

You must have noticed it by now...Customisation is not merely a trend; it's a game-changer. Mastering the Art of Customised Packaging in Retail. In the world of brand and packaging, Function of Beauty is pioneering a new frontier. 📈 The Rise of Customisation in Packaging In an era where consumers crave personal touch, Function of Beauty has tapped into the heart of customisation, diversifying its approach across retail channels. 🔍 Delivering Tailored Experiences DTC Offering: More than just products, it's about delivering a wholly personalised experience. From choosing the colour and fragrance to custom labels, it's branding at its pinnacle. Sephora's Pro Collection: A testament to the adaptability of packaging. This salon-grade line, priced between $4 to $28, is crafted keeping in mind Sephora's luxury-seeking clientele. Target Collection: Demonstrating that customisation doesn’t always mean premium. Launched in 2020, this line, priced as affordably as $9.99, offers a value-driven yet distinct experience. 🌸 Customisation: Beyond Aesthetic Function of Beauty's CEO, Alexandra Papazian, highlights that it's not just about aesthetics; it's about resonating with different retailer audiences. Brands need to ensure that their packaging speaks the language of the retailer's customer base, and Function of Beauty excels in this. 📈 The Future of Packaging is Personal Function of Beauty's innovative concentrate pods allow customers to infuse personal touch even in a retail setting. As brands, the ability to offer some level of personalisation across channels will set us apart. Retailers too are realising the power of customisation, especially with the Gen Z demographic pushing for personalised experiences. 🔍 Customisation: The Key to Brand Growth With successful partnerships like Target and Sephora, Function of Beauty is testament to the fact that when customization meets strategic brand positioning, growth is inevitable. As they plan for future retail collaborations, customisation remains at the forefront. In the ever-evolving world of branding and packaging, customisation is the golden ticket. Are you ready to unlock a unique brand experience? Let's connect and reimagine your brand's potential. #PackagingTrends #Customisation #BrandEvolution #FunctionOfBeauty #beautypackaging #beautybranding

You might think you sell luxury fragrances, but you don’t. You sell the feelings and emotions those fragrances inspire. This is why it’s so important to understand exactly who you’re speaking to when you market and distribute your products.   Because if your brand doesn’t resonate with your intended audience, it won’t inspire those all-important feelings, and it won’t build trust, recognition - or your profit base. We understand this might be easier said than done. The luxury fragrance market is changing, and the demographics that have made up such a loyal customer base for your brands for years, are shifting. New generations, with massive buying power and influence, are increasingly becoming the dominant force in the market.   So, what can you do to stay ahead of the curve?   How can you ensure your brand remains relevant, desirable, and accessible to new, previously unexplored markets? And, perhaps most importantly of all, how can you guarantee brand control in this dynamic market? We can help. We use sustainability forecasting to predict future sales trends, and insights from data to market your brands in previously unexplored ways - without impacting your existing distribution channels, and without you losing control of your brand's image or reputation. If that’s something you’d like to explore, we’d love to help you. #Perfume #Marketing #Distribution #SocialMedia #Branding

"Furthermore, a recent report by Placer.ai found that Ulta Beauty was leading the pack in the discretionary spending categories. During July, in-person visits to the beauty retailer were up more than 15 percent year-over-year. The report's authors attribute Ulta Beauty's retail resilience to its broad appeal. The beauty retailer has a mix of luxury and value-prices merchandise to attract both affluent and less well-off consumers, of all ages." The beauty industry has been on a strong path to recovery since the peak of the pandemic, with Gen Z consumers' increased spending power, shaped by their digital upbringing, playing a significant role. WWD's reporter Kanika Talwar cites Placer.ai's "Ulta Beauty: Leading the Discretionary Pack" report in her recent article. Here's what to know: https://lnkd.in/gzwZeAXg #foottraffic #foottrafficanalytics