The cosmetic industry in the United States is an ever-changing excitement that it is constantly growing. As a cosmetic marketer, it is important to understand the current and emerging trends within the industry that make it flourish. Recent reports have indicated several recent trends within the cosmetic industry that offer new opportunities for cosmetic professionals. Recognizing price points and brand positioning, the need for time saving or long-lasting products, the demands of rising baby boomers, conscientious beauty requirements, and technological advancements is essential for cosmetic professional to take full advantage of the rising opportunities.
As we have entered an economic crisis over a decade ago, the financial aspects of product choices are crucial. Price point analysis and brand positioning are extremely vital for products entering or re-entering the market. Setting a product’s price appropriately is important as many consumers need justification for greater expense items or are attracted to a great bargain. Positioning a product among competitors defines its price point. A consumer can expect to pay a certain amount for a product based on its quality and how the brand is recognized. Due to the economic struggles, there is a greater demand for inexpensive products. High quality product companies that set higher prices are now focusing on reminding consumers of their quality assurance as it helps justify the additional expense for their items.
Further justification for higher end products falls within their promise of saving consumers’ time or offering long-lasting relationships with the products. As there is a current need to save time in daily schedules, cutting corners in makeup application has become very popular. Many consumers do not want to spend hours on their personal care, so they often choose products that help save them time in their routines. Another characteristic of a product that consumers are currently demanding is the ability for the product to be long-lasting. A consumer is more likely to purchase a product that they know will last them a long time over a product they know they will need to repurchase in the near future.
As there is a rise of the post-World War II baby boomers, another trend is presented. This densely populated age group, born 1946-1964, is currently approaching mid-life and has an increased concern about signs of aging. In response to aging concerns, they tend to focus on anti-aging ingredients within their products. There is an increase in the need for products that help mask their age, prevent further aging, or diminish signs of aging. It is expected that we will see around a five billion dollar increase in this industry by 2015. This drastic increase in the market can be a true gold mine for many cosmetic companies in the industry.
As many consumers are becoming conscientious in their product choices, it is important for the cosmetic professional to recognize these specific trends. Consumers are now strengthening their appreciation for companies that are natural and cruelty-free. There also has been a significant rise in cruelty free cosmetics. Cruelty free products are defined as those that do not require harm or death to animals or humans. Recent surveying has presented astonishing results stating about 75 percent of consumers are admitting to purchasing cosmetics that feature the label cruelty-free label. Creating products that are natural and cruelty-free will attract many consumers as well as strengthen brand loyalty as many consumers will be inclined to continue purchasing from companies that provide these products.
A final noted trend within the cosmetic industry is the advancement of technology. Many consumers are using online digital makeovers to test out new looks. This minimizes the process of trying new products in the stores or retail locations. In which case, many consumers are choosing to purchase products online, either through these specific sites or through their affiliates. Other technological improvements have led consumers to crave items either at home or within a spa setting. For example, there has been a rise of LED lights to help improve acne concerns and infrared lights to help diminish signs of aging. These technological advancements are available in retailers for at-home use or in a salon setting performed by a licensed professional. Another technological trend is the use of social media. Companies now are observing greater sales rates when they are interacting with consumers among social media sites, like Twitter and Facebook. This engages the consumer to not only build brand loyalty, but also receive updates from the companies regarding their latest products and trends.
To recognize the previous trends in the cosmetic industry is extremely important as it helps build the success of cosmetic professionals. Without the acknowledgement of these trends, a company could easily fail as its competitors begin to soar above them. Financial appropriateness; time saving or long-lasting products; cruelty free or fair trade products; natural or organic products; or technologically exciting products are the noticeable desires of the consumer. Without tending to the consumers’ needs, a company has lost its focus and is not keeping up with the changing society around them. It is in a strong suggestion that a company should take full advantage of all of these trends, or several of these trends, to maximize their sales in this time period.