Marine Escande and Mercedes Bender, Kantar05.03.20
With 20% sales growth in the last five years, the $24 billion US skin care market has been propelled forward by the emergence of new and innovative trends, driven by up-and-coming brands. Among these are Glossier, which is now an established billion-dollar business, and Kylie Cosmetics which was valued at $900 million in 2019. The ability to identify the trends that are most likely to disrupt the market in the future can be a game-changer for established brands—and the sector as a whole.
Some big players will seek to acquire smaller brands in order to leverage their potential, based on their ability to disrupt. For instance, Coty acquired a 51% stake in Kylie Cosmetics in late 2019 for $600 million, while Shiseido bought skin care brand Drunk Elephant for $845 million, and Estée Lauder agreed to buy the Korean skin care company behind the Dr. Jart+ brand.
Other mainstream players will simply be keen to learn from these innovators, tapping into the trends behind their success—in particular by enriching their connection with consumers. Spotting the “ones to watch” is not always easy, however.
Predicting the Breakthrough Brands
Using artificial intelligence (AI) to analyze social data, it’s possible to identify which skin care and beauty brands are likely to shake up the sector in the future, and break through to broader audiences earlier than their competitors. Kantar has used its proprietary AI toolkit to highlight the brands consumers find most exciting; those with the greatest potential to challenge established brands in the coming years.
Youth to the People
Kantar’s analysis tracked how views and conversations about brands and their products changed over time, mining Twitter, Facebook, Instagram, blogs and Tumblr, as well as comments, reviews and forums. Natural language processing was applied to understand the structure of the conversation. In addition, the technique uncovers consumers’ intuitive feelings, revealing hidden themes and opportunities for growth.
The research identified the challenger brands that are particularly effective at engaging with consumers online, and delivering a great customer experience, a key driver of value growth highlighted in Kantar’s BrandZ Top 100 US Most Valuable Brands report. The 15 brands that emerged as disruptive forces are:
· Acure
· Aztec Secret
· Bliss
· Bobbi Brown
· Dove
· Dr. Dennis Gross Skincare
· Elemis
· Mary Kay
· Perricone
· Proactiv
· Ren
· Sebamed
· Sisley
· Tarte
· Youth to the People
It’s clear from the findings that a brand doesn’t have to be new in order to be disruptive; some of the Top 15 have been around for decades.
Kantar’s AI analysis also pinpointed the market trends and strategies on which the most disruptive brands capitalize. These are the emerging “hot” themes, which are set to transform the skin care and beauty market during the next few years.
Beauty Comes from Within
As health, wellness and beauty converge, US consumers are becoming as concerned about what they put on their bodies as what they put in them, and they consider skin care as a holistic, inside-out phenomenon.
The disruptive brands spotlighted in Kantar’s research produce products that are ethically sourced, of high quality, and environmentally responsible. The use of natural ingredients is a priority. Youth to the People promotes this narrative well, positioning itself as a “superfood for the skin” that uses only vegan ingredients.
Take a Stand on Social Issues
Consumers want the brands they choose to share their values; they’re not only choosing products for their effectiveness, but for how they reflect on them as people. Many of the Top 15 disruptors advocate for key causes, such as LGBTQ+ rights or opposing animal testing, that consumers might passionately rally behind.
Perricone MD
Cultivate Authentic Connections through Experience
Consumers increasingly view skin care as experiential, and expect it to be uniquely personalised to their needs. The Ordinary excels here by selling individual ingredients, allowing consumers to craft their own routines and tackle specific concerns. Disruptive brands excel at building relationships and loyalty using tactics like tutorials, before-and-after experiences, and consumer-driven conversation spaces. Established players may find it harder to cultivate intimate connections, but they can strive to become more personal and authentic in their communications.
Stand Out in the Crowd
Disruptors offer something distinctive and tangibly different that helps them gain attention and engage customers. Brands should be inventive, offering something that no one else in the industry does—whether it’s a unique product or novel service.
Make Customers Feel Represented
Everyone is unique, and brands should build their portfolios to reflect diversity. This must extend beyond offering a wide range of makeup shades, and into answering specific needs. Brands including Maybelline are simplifying choice by helping customers find what’s most relevant to them; for example, on Maybelline’s website, www.maybelline.com, visitors can select their skin concerns and receive tailored guidance on product selection.
Deliver on Status—But be Relatable
Emotional connection greatly influences purchasing decisions, but consumer behavior has changed. Whereas once they aspired to look like top models, today’s idols are social media and reality TV stars. Consumers buy KKW products because of the status symbol attached, but also because Kim Kardashian is relatable, and they want to belong to her “tribe.”
Consumers trust brands like Jeffree Star or Halo by Tati Westbrook because those influencers have a track record of trialling products online. They’ve built their personal credentials, and crafted their communities; consumers feel they have relationships with them, and consider them an authority on what to buy.
Focus on the Flagship Product
Consumers don’t want one brand for everything; they’d rather buy concealer from Tarte, brow products from Benefit, and highlighters from Becca, for example. Disruptive brands recognize what they’re the best at and capitalize on this, then expand to other products.
Of course, the world has changed substantially since Kantar’s research was completed. Consumers are still buying skin care and beauty products—and self-care has taken on new significance. More than ever, brands must be in tune with how people around the world are feeling, and the trends that evolve as time goes on, to stay relevant. Using AI to analyze conversations on social media could play a key role.
An understanding of which will be the sector’s next breakthrough brands will drive growth for established players, and the industry as a whole. The 15 brands highlighted in Kantar’s study are not yet considered mainstream, but they’re steadily gaining fans. Identifying their potential early on allows others to learn from them and take advantage of the trends they leverage to power their future success.
About the Authors
Marine Escande is insight managing consultant for Kantar and Mercedes Bender is a brand strategy partner at Kantar. For more information, visit www.kantar.com/analyticspractice
Some big players will seek to acquire smaller brands in order to leverage their potential, based on their ability to disrupt. For instance, Coty acquired a 51% stake in Kylie Cosmetics in late 2019 for $600 million, while Shiseido bought skin care brand Drunk Elephant for $845 million, and Estée Lauder agreed to buy the Korean skin care company behind the Dr. Jart+ brand.
Other mainstream players will simply be keen to learn from these innovators, tapping into the trends behind their success—in particular by enriching their connection with consumers. Spotting the “ones to watch” is not always easy, however.
Predicting the Breakthrough Brands
Using artificial intelligence (AI) to analyze social data, it’s possible to identify which skin care and beauty brands are likely to shake up the sector in the future, and break through to broader audiences earlier than their competitors. Kantar has used its proprietary AI toolkit to highlight the brands consumers find most exciting; those with the greatest potential to challenge established brands in the coming years.
Youth to the People
The research identified the challenger brands that are particularly effective at engaging with consumers online, and delivering a great customer experience, a key driver of value growth highlighted in Kantar’s BrandZ Top 100 US Most Valuable Brands report. The 15 brands that emerged as disruptive forces are:
· Acure
· Aztec Secret
· Bliss
· Bobbi Brown
· Dove
· Dr. Dennis Gross Skincare
· Elemis
· Mary Kay
· Perricone
· Proactiv
· Ren
· Sebamed
· Sisley
· Tarte
· Youth to the People
It’s clear from the findings that a brand doesn’t have to be new in order to be disruptive; some of the Top 15 have been around for decades.
Kantar’s AI analysis also pinpointed the market trends and strategies on which the most disruptive brands capitalize. These are the emerging “hot” themes, which are set to transform the skin care and beauty market during the next few years.
Beauty Comes from Within
As health, wellness and beauty converge, US consumers are becoming as concerned about what they put on their bodies as what they put in them, and they consider skin care as a holistic, inside-out phenomenon.
The disruptive brands spotlighted in Kantar’s research produce products that are ethically sourced, of high quality, and environmentally responsible. The use of natural ingredients is a priority. Youth to the People promotes this narrative well, positioning itself as a “superfood for the skin” that uses only vegan ingredients.
Take a Stand on Social Issues
Consumers want the brands they choose to share their values; they’re not only choosing products for their effectiveness, but for how they reflect on them as people. Many of the Top 15 disruptors advocate for key causes, such as LGBTQ+ rights or opposing animal testing, that consumers might passionately rally behind.
Perricone MD
Consumers increasingly view skin care as experiential, and expect it to be uniquely personalised to their needs. The Ordinary excels here by selling individual ingredients, allowing consumers to craft their own routines and tackle specific concerns. Disruptive brands excel at building relationships and loyalty using tactics like tutorials, before-and-after experiences, and consumer-driven conversation spaces. Established players may find it harder to cultivate intimate connections, but they can strive to become more personal and authentic in their communications.
Stand Out in the Crowd
Disruptors offer something distinctive and tangibly different that helps them gain attention and engage customers. Brands should be inventive, offering something that no one else in the industry does—whether it’s a unique product or novel service.
Make Customers Feel Represented
Everyone is unique, and brands should build their portfolios to reflect diversity. This must extend beyond offering a wide range of makeup shades, and into answering specific needs. Brands including Maybelline are simplifying choice by helping customers find what’s most relevant to them; for example, on Maybelline’s website, www.maybelline.com, visitors can select their skin concerns and receive tailored guidance on product selection.
Deliver on Status—But be Relatable
Emotional connection greatly influences purchasing decisions, but consumer behavior has changed. Whereas once they aspired to look like top models, today’s idols are social media and reality TV stars. Consumers buy KKW products because of the status symbol attached, but also because Kim Kardashian is relatable, and they want to belong to her “tribe.”
Consumers trust brands like Jeffree Star or Halo by Tati Westbrook because those influencers have a track record of trialling products online. They’ve built their personal credentials, and crafted their communities; consumers feel they have relationships with them, and consider them an authority on what to buy.
Focus on the Flagship Product
Consumers don’t want one brand for everything; they’d rather buy concealer from Tarte, brow products from Benefit, and highlighters from Becca, for example. Disruptive brands recognize what they’re the best at and capitalize on this, then expand to other products.
Of course, the world has changed substantially since Kantar’s research was completed. Consumers are still buying skin care and beauty products—and self-care has taken on new significance. More than ever, brands must be in tune with how people around the world are feeling, and the trends that evolve as time goes on, to stay relevant. Using AI to analyze conversations on social media could play a key role.
An understanding of which will be the sector’s next breakthrough brands will drive growth for established players, and the industry as a whole. The 15 brands highlighted in Kantar’s study are not yet considered mainstream, but they’re steadily gaining fans. Identifying their potential early on allows others to learn from them and take advantage of the trends they leverage to power their future success.
About the Authors
Marine Escande is insight managing consultant for Kantar and Mercedes Bender is a brand strategy partner at Kantar. For more information, visit www.kantar.com/analyticspractice
