The global beauty and personal care industry is valued at $532 billion and is expected to reach $800 billion by 2030. With the rise of new and accessible ecommerce technologies and increasing competition in a fast-growing market, it is crucial for beauty brands to embrace innovative tools and strategies to stand out from the competition.

In this guide, we look at five ways beauty brands can differentiate themselves to win customers, increase loyalty and shine amongst their competitors. 

Lift your brand with virtual and augmented reality

Virtual reality (VR) and augmented reality (AR) technologies have become increasingly accessible in recent years, opening up new and exciting opportunities for beauty brands to connect with their customers.

Emerging VR/AR technologies are also changing the way consumers discover, experience, and connect with beauty brands. Consumers are showing an increased interest in beauty technologies, and beauty brands are capitalizing on this by introducing these tools in their digital strategy.

Cosmetics retailers are increasingly offering virtual beauty advice tools, typically via online chat or members-only social platforms. Convenient and personalized, these services enhance the brand experience, strengthening customer loyalty at the same time. 
 

• VR and AR are accessible and affordable.
• Use virtual beauty advice to connect with consumers.
• VR and AR offer convenience, enhanced brand experience and strengthened customer loyalty. 

Stand out with a truly omnichannel presence

With the surge of online shopping and social commerce, consumers have come to expect beauty brands to interact with them across multiple touchpoints – mobile, website, in-store, and so on. 

In response, brands are now combining in-store elements with ecommerce operations, mobile strategies and social media communications to create an omnichannel experience for their customers.

It’s essential for beauty brands to recreate store experiences that complement and match the digital experience in order to capitalize on the lifetime value of the omnichannel consumer.

For instance, digital tools like virtual try-ons and location targeting beacons can provide a seamless shopping experience, tailored to consumers’ needs and preferences. Additionally, beauty influencers play a significant role in advertising products via social media channels. This enables beauty brands to combine online experiences with live in-store influencer events.
 

• Customers today expect an omnichannel experience from brands.
• Omnichannel consumers offer a greater lifetime value.
• Innovate with social channels to differentiate your brand offering. 

Use data-driven marketing to enhance your brand value

Within a crowded market, consumers expect customized products and recommendations tailored to their needs. Consequently, providing these personalized products and experiences helps beauty brands stand out.

Indeed, 77% of consumers prefer beauty brands that provide a personalized product or experience.

Personalization offers higher conversion rates, increased customer loyalty, trading up in purchases and, crucially, an increased sense of value and recognition for the shopper.

But for brands to deliver this effectively, they need data-driven marketing to help them identify consumer preferences. Artificial intelligence (AI), analytics tools and machine learning play a pivotal role here, enabling beauty brands to capture data on customers’ behavior patterns and needs with ease to facilitate the tailoring of products and services.

Gathering and analyzing primary data about the consumer helps beauty brands to differentiate products and offer personalized products and recommendations. As a result, beauty brands are able to create entire bespoke beauty regimes for individual consumers – powerful differentiation themselves in a busy market.

• Beauty consumers prefer brands that offer personalization. 
• Personalized products and experiences increase customers’ sense of value.
• Leverage data-driven marketing to explore customer preferences. 

Innovate with social commerce and livestreaming

Consumers increasingly trust social media platforms when it comes to discovering new beauty brands, looking for product information and purchasing products. In fact, 72% of US consumers have used a social media channel to find new products, with 36% making a purchase through one of these channels over the last year.

While this is certainly not a new trend, social commerce is always evolving, and social selling and livestreaming are the newest innovations in this space. Already successful in Asia and gaining traction in the US and Europe, these technologies are opening up new ways for beauty brands to connect with their customers.

For instance, many beauty brands now offer personal recommendations via livestreaming. These live sessions drive engagement, bringing the authenticity and credibility of key opinion leaders (KOLs) and influencers to their products and brand.

When 86% of women actively seek out advice and recommendations on social media to help them with their purchasing decisions, it makes sense that many beauty brands are moving towards social commerce and partnering with local KOLs and influencers to increase customer engagement, identify purchase intention and stand out in a crowded market. 

 

• Social commerce and livestreaming are increasingly popular with consumers. 
• Customers use social channels to find advice and recommendations. 
• Lean on KOLs and influencers to build authenticity and credibility.

Differentiate and diversify with natural and organic beauty products 

Consumers are becoming increasingly aware of their health, wellbeing and environmental impact.

As these wellness-conscious shoppers look for products that help them to sleep, be calm, and stay mentally healthy, the global market value of natural and organic cosmetics is expected to reach $20.4 billion by 2030, up from $9.9 billion in 2021.

For beauty brands, this is an opportunity, and they should cater to this by moving towards natural and organic products and ingredients, as well as eco-friendly packaging. 
The focus on organic ingredients is particularly important. Consumers typically perceive organic products as healthier and more planet-friendly than non-organic ones.

Beauty brands are tapping into this by renewing their focus on natural active ingredients, with examples ranging from ground coffee and plankton to snail slime and even bee venom.
 

• Shoppers are becoming more conscious of their health and wellbeing. 
• Beauty brands should embrace natural and organic products and ingredients. 
• Customers perceive organic products as healthier than non-organic products.

In 2022, beauty brands have a wealth of ways in which they can engage consumers and stand out.

Offering seamless beauty solutions that connect offline and online channels, mobile applications, virtual try-on capabilities and digital consultations is key to meeting customers on the channels they prefer.

Beyond this, beauty brands should leverage the new innovations of social media to attract new customers, using social commerce to create seamless online shopping experiences.

Most importantly, developing and implementing strategies that drive sustainability, transparency and authenticity remains a key priority for brands looking to differentiate themselves in the market.

At THG Ingenuity, we understand the changing trends that shape how you connect with your customers. With years of proven experience and success helping beauty brands grow, we have the skills, talent and infrastructure you need to get you there.

Get in touch today and start embracing the trends that your customers want to see in 2022.