Revealing strategies to meet evolving trends and consumer preferences in beauty and hygiene sectors

07 Jul 2023 --- The Digital Native Group (DNG) has released its latest study, “The Beauty and Hygiene Sectors in 2023,” which looks at how the personal care market has changed, especially since COVID-19. Focusing on the French market, the consulting firm reveals new consumption trends and how successful brands meet the demands of a new generation of shoppers.

Since the 1960s, spending on beauty and hygiene products has been experiencing rapid growth in France – growing from 4% of the total expenditures in the 1960s to 22% in 2020.

This is followed by beauty services, such as hairdressers or beauticians, which was at 4% in the 1960s and grew to 11% in 2020.

DNG attributes this growth to the evolution of social attitudes and increased R&D and new market players and products.

E-commerce shows resilient growth
DNG’s study finds that since 2022’s market decline due to COVID-19, the beauty and hygiene sector is at its highest level, with a growing share of e-commerce.

In France, the value of the beauty and hygiene market in 2013 was 13 billion. This fell to 12.2 billion in 2020, due to the global pandemic, and rose to 14.2 billion in 2022.

Moreover, the percentage of e-commerce sales has been increasing. In 2016 it was 18%, rising to 27% in 2020 and 33% in 2022.Two significant trends – clean beauty and ultra convenience – have emerged from consumer preferences in recent times, according to DNG.

Clean advancements
Two significant trends – clean beauty and ultra convenience – have emerged from consumer preferences in recent times, according to DNG.

Demand for clean beauty rose due to ecological awareness. DNG notes that 90% of Gen Zers say they are interested in natural cosmetics, and 75% of Millennials claim to be ready to change their beauty routine in favor of responsible brands for the environment.

For example, DNG spotlights the brand Unbottled for its labeling, which features a “clean” formula – “100% natural ingredients, pH neutral, Vegan and 100/100 on Yuka.” Yuka is an app that scans products to provide information on the products.

In addition, Yves Rocher is noted for its “made in France” products, and Caudalie’s recyclable, reusable pack and exclusive “refill” purchase for specific products are linked to the clean beauty trend. 

The three brands stand out based on their formulation, manufacturing location and packaging choices.

Spreading services across channels
“Ultra convenience” is the second major consumer trend, according to DNG. “Born amid the digital boom with the arrival of Amazon and Uber, consumers demand immediacy and ‘seamless’ experiences.”

DNG singles out Seasonly for its services in three of its “Skin Studios” in the Paris region and within Galeries Lafayette. 

La Roseé Paris is highlighted for its phygital journey across omnichannel distributions in e-commerce and within more than 7,000 pharmacies.

In addition, Typology is noted to increase its presence through offers via subscriptions or routine. The brand offers diagnosis services to consumers who are offered a personalized routine. 

These brands showcase three ways brands are expanding their presence and services across online and offline channels.

Personal Care Insights interviewed EveLab Insight, shedding light on upcoming trends in beauty technology innovations for seamless connections and hybrid services for skin health.The key to company growth relies on innovation, horizontal strategy, strengthening culture and expanding channels.

Innovation should meet market gaps
DNG shares that the key to company growth since 2010 relies on four main pillars – innovation, horizontal strategy, strengthening culture and expanding channels.

Only Curls is an example of being innovative because it has targeted a segment forgotten by the market. The brand was launched in 2016 and has a turnover of up to £1 million (US$1.3 million) with 156k followers on Instagram.

DNG shares that 69% of consumers who define themselves as belonging to a minority are more likely to buy from a brand that specifically meets their needs. Lizzie Carter, founder and CEO at Only Curls, aims to “inspire others to embrace their natural curls.” Thus, the brand meets the needs of people with curly and textured hair.

Strengthen proximity culture
The second pillar of growth is “to be horizontal” by strengthening the culture of proximity. 

DNG notes that 72% of consumers are emotionally attached to a brand and are ready to highly recommend it, compared to 40% when satisfaction is only functional.

An example of a brand that fulfills this pillar is Gisou, created in 2015, with a turnover of €10 million (US$10.9 million) in 2020. Founder N. Mirsalehi embodies the brand, with 7 million followers on Instagram and 1.2 million on TikTok, well beyond the company’s followers of 644k on Instagram and 293k on TikTok.

She comes from a family of beekeepers of six generations and produces eco-friendly products.

The brand is loved by the community built on social media and has a family history based on values, which is embodied by the brand.

Expand the range
The third pillar of brand growth is being a one-stop shop for consumers, which is possible by expanding its product offerings.E-commerce sales increased from 18% in 2016 to 33% in 2022.

DNG shares that 52% of French people prefer to purchase from a single website rather than ordering from several e-tailers.

Typology is an example of a brand that follows this pillar of growth. It was created in 2019, with a turnover of €200 million (US$ 217.8 million) in 2020. 

In 2019, the brand fundraised US$10 million. It launched a face oil containing 100% Vegetable Squalane and the skin care range Routines in the same year. In early 2020, the company launched a hair care range, followed by a body care range at the end of 2020 and a range of makeup in 2021.

Multiply purchases
The last pillar of growth relies on leveraging omnichannel to multiply consumer purchasing. DNG highlights that 69% of consumers could turn away from brands not offering omnichannel services.

An example of a brand that uses several channels is Freshly, launched in 2015 with a turnover of €50 million (US$ 54.5 million) in 2021. In 2020, it fundraised €19 million (US$ 20.7 million). The brand has four types of omnichannel distributions.

Freshly owns its online shops to sell directly to consumers. The site is available in several languages and offers comprehensive products. It also highlights the community via links to social networks, shops and customer services.

The brand’s other indirect online channel leverages e-retail and marketplaces. Freshly products are distributed by retailers like Sephora, Amazon, Arenal and Druni. This way, it capitalizes on the traffic from other sites.

Freshly has 11 direct shops in Spain, with its information featured in e-shops. In addition, its offline indirect channel includes specialized wholesale distributors, like Sephora.

Last year, DNG studied 1,200 consumers and found key differences between Gen Y and Gen Z values that drive “brand love” under the hygiene, care and makeup sectors.

By Venya Patel