Weekly Newsletter - 15.08.2024

Your competitors are crushing it on TikTok, are you?

Have you finalized your marketing budget for the upcoming peak shopping season? Before you commit, consider this: TikTok has proven to be a game-changer in the eCommerce space that marketers cannot afford to ignore.

Every skincare marketer dreams of maximum visibility and conversions during peak shopping periods. While this goal remains constant, the playing field is evolving rapidly.

Numerous brands have already tapped into TikTok’s potential. In fact, Fospha reports that TikTok commands an average of 10% of its customers’ marketing budgets, a clear indicator of its growing significance.

What makes TikTok unique is its ability to attract new customers - 70% of purchases driven by TikTok come from first-time buyers. To truly leverage this platform, brands must create trend-driven and organic-in-appearance content that authentically resonates with TikTok's vibrant culture.

However, measuring the true impact of TikTok presents a challenge. Traditional metrics often undervalue its contribution to a brand's overall success. Fospha’s analysis suggests that TikTok deserves 22X more credit than traditional methods suggest.

This dynamic platform has the power to drive exceptional results for your brand if you adopt a strategic approach and refine your measurement techniques.

BEAUTY INDUSTRY
Kosas and Naturium: Leading the Lip Care Revolution 

In the dynamic world of cosmetics, Naturium and Kosas are emerging as the fastest-growing lip care brands, according to Spate's latest analysis. These brands are not just riding the wave of consumer interest; they are setting new trends in the industry. Naturium, with an impressive 12.0K average monthly searches and a 72.5% growth rate, is captivating consumers with its Phyto-Glow Lip Balm. This product, rich in phyto-derived esters, offers both moisturizing and glossy benefits, reflecting a growing consumer preference for visually appealing and effective lip care solutions. The product's popularity is further underscored by its frequent comparison to the Summer Fridays Lip Balm, a testament to its market impact.

Kosas, on the other hand, is making significant strides with a 117.2% growth in searches, averaging 2.7K monthly. The brand's Kosasport Hyaluronic Lipfuel Lip Balm and Wet Lip Oil Gloss are leading the charge, highlighting a shift in consumer preferences towards tinted, wet, and glossy lip products. This trend signifies a departure from traditional balms and salves, emphasizing the importance of aesthetics alongside hydration. The increasing search for hyaluronic lip balm underscores consumers' growing ingredient awareness and desire for multifunctional products.

These developments in the lip care market illustrate a broader trend towards innovative, ingredient-savvy, and aesthetically pleasing products. As consumers become more discerning, brands like Naturium and Kosas are not only meeting but exceeding expectations, setting new benchmarks in the beauty industry. The rapid growth of these brands is a clear indicator of the evolving landscape, where effectiveness and visual appeal go hand in hand, driving the future of lip care.

BUSINESS NEWS
e.l.f. Beauty's Q1 Sales Soar 50% Amid German Expansion Plans 

e.l.f. Beauty's Q1 sales surged 50% to $324.5 million, surpassing Wall Street's forecast. The brand achieved its 22nd consecutive quarter of growth and plans to expand into Germany. Despite a slight dip in net income, the company raised its full-year sales outlook to $1.28-$1.3 billion.

RETAIL EXPANSION
Prequel's Viral Success Leads to Target Partnership 

Skin care brand Prequel, known for its viral TikTok $18 glycerin cleanser, is expanding into Target stores. Launched a year ago, Prequel has achieved $18 million in online sales and anticipates $35 million in first-year sales at Target. The brand emphasizes glycerin's unique concentration and skin barrier repair properties.

INDUSTRY NEWS
Chantecaille Partners with Tmall to Enter Chinese Market 

Chantecaille, a luxury skincare and cosmetics brand, has partnered with Tmall to expand its presence in China. This collaboration aims to introduce Chantecaille's botanically-based, cruelty-free products to a broader audience. The brand will also host a pop-up experience in Shanghai to engage consumers directly.