Beauty’s Direct Approach
Who needs brick-and-mortar?
A new breed of beauty brands like Jay Manuel Beauty, Glossier, Beautycounter and Tula have scrapped the old adage of “Try before you buy,” and are in favor of taking their products directly to the consumer via TV or the Internet to ignite impulse sales.
These upstart brands are creating beauty’s new reality, one where fashion seems to be ahead of the game with e-commerce players like Warby Parker, BaubleBar, Bonobos and Negative Underwear, among others.
“[Consumers are] buying [online] with the incentive that you’re first to have it,” said Karen Grant, vice president and global beauty industry analyst at The NPD Group Inc. “You’re getting these special deals or you’re getting the sneak peak. There’s a lot of buzz and fun for that impulse purchase, too.”
NPD reported that in 2013 the prestige market was up 5 percent, but the direct-to-consumer category was up 19 percent and it was growing about equally between makeup and skin care. Fragrance on the other hand, isn’t so appealing to purchase online.
Grant added, “The makeup category has been huge. The presence of brands like Sephora and MAC [online] has really helped to create a lot of excitement because it’s so visually easy to see color [on screen].”
While the likes of Sephora and Amazon may dominate beauty e-commerce, these new direct-to-consumer brands believe they have a competitive advantage with their authentic voice. Plus, smaller brands find it’s hard to differentiate themselves in a department or specialty store with the absence of multimillion-dollar advertisingcampaigns.
“There’s a cost obviously associated with launching digitally,” said Grant. “But in-store you have to have inventory and personnel. In a store you have to ask, How can I get the space to make sure someone sees me there?”
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