Skincare Unboxed Newsletter | Glow Up for the New Season

Plus, ANUA is making waves in the U.S. beauty market

Author

Sophie Bruxner-Randall
February 19, 2025 • Estimated Reading Time: 8 minutes

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Welcome to Skincare Unboxed, your go-to newsletter for skincare eCommerce insights.

Before We Start… ⚡️

eTail West 2025 is almost here! Want the inside track on game-changing trends, must-know insights, and key takeaways from the event?

Money Moves 💵

Scaling an eCommerce brand isn’t just about optimizing ad spend and conversion rates—it also requires access to capital. Whether funding inventory, launching new marketing campaigns, or expanding internationally, many businesses struggle with cash flow constraints. Embedded finance is changing this, making funding more accessible without the delays of traditional lenders.

A recent partnership between Liberis and Vagaro shows how seamless funding can empower businesses. By integrating financing directly into Vagaro’s platform, salons and wellness professionals gained frictionless access to working capital, with performance-based approvals and revenue-based payments. In just one month, $4M in funding reached 200+ merchants, helping them grow without financial bottlenecks.

For eCommerce brands, this signals a shift toward more flexible growth funding models. Just as Buy Now, Pay Later (BNPL) options have transformed customer spending, embedded finance could help eCommerce businesses secure capital for scaling operations, launching ads, or managing seasonal cash flow—all within their existing platforms.

Sector Spotlight 🎥

INNOVATION STRATEGY

Why do some products feel irresistible before you even try them? Think Rhode’s caramel-drizzled lip balms and Jacquemus' butter-stacked visuals, they both tap into something deeper than aesthetics—they trigger craving.

Brands are using sensory marketing to spark instant desire, from food-inspired packaging to ASMR-worthy textures. Touch, scent, and even sound are shaping how we shop, making products feel indulgent before they even land in our hands.

BEAUTY MARKET INNOVATION

ANUA's strategic expansion to 1,400 Ulta Beauty stores positions it for robust U.S. market growth. Its approach leverages innovative digital marketing, exemplified by TikTok's 2.4 billion views, and a retail strategy with Ulta, aiming to consolidate ANUA's role as a prominent global skincare brand in the competitive beauty landscape.

INNOVATION STRATEGY

L'Oréal's Big Bang Beauty Tech Innovation Program 2025 ventures into Australia and New Zealand, integrating start-ups from the SAPMENA region to explore five cutting-edge themes. The newly introduced 'Science for Beauty' theme signals a pivotal focus on leveraging technology for personalized, inclusive, and responsible beauty innovations. This strategic expansion not only unlocks access to 35 regional markets but also offers mentorship from L'Oréal's senior executives, enhancing market penetration and brand influence.

With the submission deadline set for May 2025 and the Grand Finale slated for November, the initiative propels collaboration and strategic growth, solidifying L'Oréal's stature in the global beauty tech arena. Through this initiative, L'Oréal aligns digital innovation with scientific advancement, ensuring its beauty solutions stay ahead of market trends while providing actionable insights for eCommerce and marketing professionals to elevate consumer engagement and brand presence in a dynamic industry landscape.

BEAUTY TECH REVOLUTION

In the evolving landscape of skincare, AI and personalization are key drivers of innovation, as highlighted by Dr. Jason Harcup. Unilever's cutting-edge use of generative AI accelerates innovation, combining life sciences for bespoke skincare solutions. Priorities include microbiome insights, hydration strategies, and extending premium facial care benefits to body products.

INNOVATIVE BEAUTY MARKETING

Wardah's AI-driven personal color technology introduced at Jakarta's Wardah Colorverse event harnesses global expertise and Pixie Lab collaboration. This strategic fusion in beauty marries personalization with data-driven insights, presenting rich opportunities for digital marketing professionals to innovate in consumer engagement and elevate brand presence in the ever-evolving beauty landscape.

BEAUTY MARKET EXPANSION

The Ordinary ventures into China's vast beauty market via Sephora, with 24 localized offerings, setting the stage for Tmall and Douyin launches. This maneuver by Estée Lauder aims for rejuvenation amid Asia-Pacific sales hurdles. The Ordinary adapts to regulations while combating misinformation through scientifically-backed white papers, showcasing innovative eCommerce strategies.

DIVERSE BEAUTY STRATEGIES

The beauty industry's shifting landscape presents both challenges and opportunities as DEI rollbacks threaten past progress. Black beauty founders have tapped into grants to address market gaps, showcasing the strategic advantage diversity offers. With Black consumer spending on beauty products soaring to $9.4 billion in 2023, the imperative for brands to maintain DEI efforts becomes evident. For digital marketing and eCommerce leaders, the strategic focus is on leveraging inclusivity as a driver for brand loyalty and growth in an evolving market.

Black-owned brands illustrate the potential for innovative solutions where mainstream companies have faltered. As DEI initiatives face decline, the industry can benefit from sustained community-driven support and strategic partnerships promoting inclusivity. Industry trends underscore the necessity for eCommerce leaders to support diverse voices, not only enhancing brand reputation but aligning with the diverse global consumer base—a crucial strategy in this trillion-dollar market. This approach positions brands as champions of diversity, engaging consumers and capturing emerging market opportunities in an increasingly competitive landscape.

BEAUTY SECTOR INNOVATION

Yendy Skin's strategic Adobe collaboration highlights an innovative marketing approach, propelling a 300% sales surge through high-profile ads. By spotlighting founder Julian Boaitey's support for African farmers, the campaign delivers critical insights into narrative-driven brand elevation, offering valuable lessons on leveraging partnerships for enhanced consumer engagement and eCommerce progression in the beauty sector.

Influencer Corner 📣

Jessie Healy: People may disagree with me, but I believe there is a pretty clear marketing playbook for growing an eCommerce brand

and yet it is surprising how many brands miss key parts of the playbook.

Here are the most common areas I see brands miss the mark:

Early stage eComm brands:
-No/few email flows in place
-No brand ads on Google
-Not enough reviews/no reviews on their website
-Not getting user generated video content (UGC) about their products to use in marketing
-Not realising they need to invest in creative
-Testing too many channels too early
-Poor understanding of their LTV and CAC
-Inaccurate tracking

Optimization Hub ⚙️

ECOMMERCE INSIGHTS

The FedEx eCommerce report reveals that 97% of consumers abandon purchases due to shopping inconveniences, emphasizing the need for seamless transactions. Key consumer expectations include home delivery, free shipping, and real-time tracking. Retailers excelling in these areas will lead the market by delivering a superior customer experience.

METAVERSE MARKETING

Brands are innovating by leveraging the metaverse as a strategic marketing frontier. This digital landscape offers immersive engagement opportunities and real-time data analytics. Challenges include privacy concerns and content saturation. Success hinges on adapting strategies through strategic partnerships, thus redefining advertising methods and engaging metaverse-savvy consumers.

Job Board 👩‍💻

Social Media Marketing

📍 Seattle, Washington, USA

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