5 ingredients to win in beauty: my evolving thesis

Aug 23

Hi everyone. Special thanks again to my small but growing crop of GlamInvest readers who take the time to read and engage with my writing. I continue to welcome any and all feedback on what you like or would like to see more of. You can reach me via sola@glaminvest.com.

I’ve spent a bit of time observing the ‘glamour industry’ not just for this blog but as a long time consumer and investor.

This week, I thought to make an attempt at synthesizing some timeless truths that I think will hold true in order for a brand to win in the competitive and ever-evolving beauty industry.

I intend to refine these over time and would love to hear what you think.

The marketing is more important than the product.
Product quality will always matter. However, in today's world where consumers are bombarded with messages from all sides, it’ll take a compelling story to stand out. Marketing that is focussed on creating a unique and memorable experience for the target audience will be a necessary complement to a high-quality product.
Distribution is (still) king.
Even in the age of e-commerce, physical distribution will remain important for beauty brands. Consumers want to be able to easily find products, whether they're shopping online or in-store. Making sure that products are available in a variety of channels that customers can easily get their hands on is a reason why department stores will continue to have relevance.
Pretty products have the most fun.
In the age of social media, visuals are everything. Products should look good on camera, so that people will want to share them with their friends. The unboxing phenomenon is proof positive of this. Making sure packaging is eye-catching and visually appealing will set winning products apart from others.
Align with a mission to win the next generation.
Younger consumers are increasingly interested in brands that share their values. If you want to appeal to this audience, you need to align your brand with a mission that they can get behind. Dove, for example, has been successful by aligning its brand with body positivity.
Creator partnerships will continue to be essential.
Top-of-funnel awareness is crucial for any beauty brand, and influencer partnerships are a great way to reach a large audience. Partnering with influencers who have authentic connections with their target audience will continue to be an effective way to reach customers.
(Bonus ingredient) If you can’t do any of the above, be a celebrity :-)
Celebrities have wide reach and their ability to market directly via social media makes them very amenable to D2C, which means not only are you able to leapfrog most of the points above, you also get to keep a greater chunk of margins.