The lipstick Index. A rare phenomenon that happened in 2001 proved that despite economic recession, the beauty industry won’t get knocked down.
It’s never been easier for entrepreneurs to break into this phenomenal industry. Some small-batch cosmetic brands still follow in the similar footsteps of Estee Lauder, famed for selling small pots of face cream from home, back in the 1940s. Others realize their brand’s potential is based upon their adaption to the changing times. Hair salons and spas are much the same. Some evolve and grow and others remain fossilized in time, never realizing the full potential of their investment.
Why the Beauty Industry is Recession Proof
Women want to feel gorgeous. This is what makes the beauty industry recession proof. When given a choice between buying new lipstick or the cup of coffee, most buy the lipstick.
Women aren’t shy to admit the power of mascara. According to a study from Money magazine, women spend an average of $15,000 on beauty products within their lifetime. The average ticket sale at the cosmetic counter is $43.
Why all this love for the magic wand? Recent research has proven the effects makeup has on boosting a woman’s confidence.
- 44% of women have negative feelings when they are not wearing makeup, with 16% saying they feel unattractive, 14% saying they feel self-conscious and 14% saying they feel naked.
- 48% of women wear makeup because they like the way they look with it.
- 32% of women said wearing makeup makes them feel good.
- 11% said they wear makeup because it’s a societal norm.
- 3% of women said they feel more attractive going without makeup.
Studies prove that many women feel best with at least a stroke of blush or concealer. With the latest technology in the industry, women can redefine their face with false eyelash extensions, semi-permanent eyebrows, and skincare services that hydrate, plump, and minimize the appearance of fine lines and wrinkles.
Instead of relying on mass-produced products, consumers are now able to create customized lipsticks and fragrances that compliment their skin tones and entice the senses.
Breaking into the Industry
As consumers continue to try new cosmetic products and delight in advanced beauty services, women entrepreneurs are making their beauty mark selling solutions that cater to the ever-changing needs of women, along with new trends in makeup.
For some women, these ventures begin with a problem-solving goal. IT Cosmetics founder Jamie Kerr broke into the cosmetic industry after she couldn’t find beauty products that treated her hereditary rosacea. Fast-forward to 2016 and she’s the founder of an insanely popular makeup company that L’Oréal just bought for a whopping $1.2 billion. She became extremely successful by following her vision of beauty products that solved problems, aiming her brand at women who wanted more.
Other beauty companies ride the tails of current fashion and lifestyle trends and live in the moment. From unicorn horn makeup brushes to mermaid wave hair products, small companies aimed at exploring women’s interests often find cracks in the industry and create of-the-moment brands that become Instagram sensational. And then it’s on to the next thing.
The Rise of Beauty Influencers and Online Marketing
According to Google, 66% of beauty product buyers say YouTube influenced their purchases by helping them visualize how products fit into their lives. In addition to brand-published videos, YouTube tutorials from popular influencers help spread awareness and exposure. Savvy brands are riding this digital wave by publishing original content, blogs and media to increase their brand’s message and help with SEO. It’s not just about gaining readership, it’s about creating an engaged community. In a world where content is said to be king, engagement is queen. When paired together, the king and queen live happily ever.
The Beauty of Changing Times
Despite unstoppable consumer spending, the beauty industry has been a little slower evole. According to Translate Media, technology is now a core part of the beauty industry’s strategy and other industries should be keen to follow.
Although there are roughly 84,000 hair salons located throughout the United States, their combined annual revenue is only $20 billion. That’s a pretty small piece of the pie when considering the beauty industry is worth $350 billion.
Salon owners and mom and pop hair establishments have yet to unharness the technology emerging in the business. There’s an increased demand for social media, apps, consumer engagement, and brand management that far extend beyond the daily tasks of a beauty service professional or business owner. In order to grow with the times, small businesses will need to revolutionize their services and enter the digital arena and the Internet of Things.
The Revolution is Coming
Technology continues to lead the new growth in customized services. Facial mapping technology is being introduced to turn the front-facing camera of a smartphone into virtual mirrors. In collaboration with Image Metrics, L’Oréal Paris launched its Makeup Genius app in 2014 so women can test beauty products in real-time and save the products to their shopping carts or wish lists for future purchase.
For big box cosmetic retailers, in-store services include screen kiosks to ease decision making. Sephora launched Color IQ in many of their locations to help women find the right products based on their skin tone. This limits the risk of purchasing expensive and unflattering products.
While beauty trends and products change, service stays forever. These modern innovations and customized services are integral to a business owner’s continued success. There’s never been a better time for to step into the world of beauty. The path has been paved.
It’s no longer pink Cadillac’s or door to door sales. The beauty industry is rocketing into the future with advanced solutions. It’s going to be a rewarding and brilliant ride for the daring entrepreneurs who delve into the $350 billion dollar industry.
The beauty revolution is coming…