malaysiangNielsenIQ (NIQ) in its recent Global Beauty Innovation Report revealed that Personal Care Brands embracing innovation in 2023 are 2.5 times more likely to see overall sales growth, compared to those with stagnant or declining innovation sales.
According to the report, strong innovations attract new buyers, create new usage occasions, justify price premiums, and keep brands top of mind, where 20 per cent of 2023 innovation launches in Europe were in skin and hair care categories.
Its Vice President, Global Client Development, Claire Marty said the beauty industry’s global popularity continues to rise, with industry sales maintaining a double-digit growth rate across all regions and is expected to bring an increase in scale of US$300 billion over the next decade. (US$1=RM4.33)
‘Despite increasing caution in consumer spending, consumers are less willing to cut back on their beauty expenditures compared to other FMCG products, with 80 per cent indicating they intend to maintain or increase their spending in t
his area,’ she said in a statement.
The study found that brands delivering strong products can see a significant upside, with an average first- year volume increase of 30 per cent compared to their less successful counterparts, whereas effective activation leads to a 20 per cent lift in ad-driven sales, especially when creative elements are optimised.
This underscores the importance of having both a great product and ensuring that the marketing and promotional efforts are well-executed and resonate with the target audience.
Breakthrough trends accelerating innovation in the beauty industry from the findings include clean and sustainable focusing on ethical sourcing, eco-friendly packaging, and reducing carbon footprints, where in South Korea, clean beauty has become a lifestyle choice.
Moreover, global consumers are shopping with an ‘ingredients first’ mindset, prioritising products based on their ingredient lists. For instance, the United Kingdom’s consumers prioritise results and efficacy over brand nam
es.
Meanwhile, celebrities, dermatologists, and influencers are also shaping beauty decisions via social media, to which the number of Key Opinion Leaders (KOLs) exceeds 20 million and is growing, while 80 per cent of actual sales come from merely seven per cent of KOLs in China.
Other advanced trends include personalisation and inclusivity; wellness focused; as well as direct-to-consumer products and at-home beauty treatments that surged in popularity during COVID-19.
Trends such as luxury for all reflects the growing availability of high-quality products at affordable prices. Democratisation of luxury is driven by innovative brands offering exceptional products rivalling high-end counterparts.
Source: BERNAMA News Agency
