Weekly Newsletter - 25.07.2024

Stay ahead with insights on emerging global skincare trends and the importance of a full-funnel marketing approach

Author

Skincare Unboxed
July 25, 2024 • Estimated Reading Time: 6 minutes

Skincare brands may face diminishing returns when relying too heavily on lower-funnel performance marketing tactics. As bottom-funnel performance marketing tactics reach saturation, causing customer acquisition costs to rise sharply.

Fospha research reveals a more balanced approach: top-performing brands allocate 18% of their budget to awareness and consideration efforts on Meta, and 22% on TikTok, alongside their conversion-focused activities. This full-funnel strategy helps maintain sustainable growth and manages CAC in the long term.

The study highlights the importance of a full-funnel approach, balancing short-term performance metrics with long-term brand building. Brands like Aveda demonstrate success by diversifying their marketing strategies beyond lower-funnel tactics.

👉 Why It Matters: Sustainable growth in the competitive skincare industry requires more than efficient performance marketing. Brands need to invest in upper-funnel activities to create a broader base of aware consumers.

The research shows that as brands mature, they need to increase their focus on brand awareness and consideration to avoid audience saturation and maintain growth. This approach not only expands the customer base but also improves the efficiency of lower-funnel conversion activities.

Cetaphil has launched innovative marketing strategies, "Ceta Six-Pack" and "CetaGrill," to target the growing men's skin care market in the US. These campaigns use humor and influencer partnerships to resonate with men and encourage open discussions about grooming.

The "Ceta Six-Pack" replaces beer with skin care products, while the CetaGrill campaign includes a sweepstakes offering a grill and a year's supply of Cetaphil products. The brand's minimalist packaging appeals to a broad audience.

Why It Matters: Cetaphil's marketing initiatives highlight the rising demand for men's skin care products and the importance of inclusive, engaging campaigns. By leveraging humor and influencer partnerships, Cetaphil aims to educate men about skin health and drive consumer engagement. This approach underscores the potential for growth in the men's skin care market and the effectiveness of targeted marketing strategies.

Clare Varga of WGSN discusses the overwhelming pace of TikTok trends and how WGSN's new TikTok Analytics tool helps brands identify genuine trends. By contextualizing trends within macro forecasts, WGSN enables brands to make informed decisions, avoiding short-term fads. This tool is crucial for brands to stay ahead in the fast-paced digital world, ensuring long-term strategic planning and product development.

Sephora's 2024 SEPHORiA Experience will be held in Atlanta, GA, on September 27-28, featuring a Beauty Funhouse theme. The event will include over 50 brand activations, masterclasses, and a spotlight on Sephora's We Belong Campaign. Attendees can expect immersive, multi-sensory experiences and opportunities to engage with beauty experts and brand founders. This event aims to celebrate diversity and inclusion in the beauty community.

The global skincare market, valued at $146.7 billion in 2021, is projected to reach $273.3 billion by 2031, driven by social media. Celebrity brands and playful packaging attract Gen Alpha and Gen Z, with 41% of Gen Z prioritizing skincare. However, social media also promotes risky trends like DIY treatments. Experts warn against harmful practices and emphasize simple routines with gentle cleansers and sun protection. Despite risks, some trends like pimple patches and clay masks are beneficial. Social media democratizes skincare knowledge but requires informed choices to avoid harm.

Beauty brands are leveraging dating apps like Tinder and Grindr for marketing, targeting users interested in cosmetics. Allies of Skin's SPF campaign on Tinder achieved a 2.3% click-through rate, surpassing benchmarks. Brands like Tatcha and Living Proof also see success on these platforms. This trend highlights dating apps as effective channels for beauty product advertising, engaging users seeking connections and self-expression.

Avon's Future of Beauty Report: Skincare Edition highlights 2024's global skincare trends, emphasizing cultural, economic, and societal shifts. The study, involving 7,000 women, reveals top skincare motivations like hydration, health, and anti-aging. Avon is also trialing sustainable technologies, such as carbon-negative bioplastics, to reduce environmental impact. The report underscores a growing preference for simplified regimes and affordable product dupes among younger consumers.