Profit
Profit is a crucial pillar within every industry as it is a determining factor in the success of a business. The beauty and personal care market generated 430 billion U.S. dollars in 2022, indicating how highly lucrative the cosmetics industry truly is (Amed et al., 2023).
COVID-19 proved to be a major difficulty to many businesses and industries due to the uncertain economic period, this presented many new challenges to brands they needed to overcome to remain competitive. The purchase priorities of the consumer changed from colour cosmetics and fragrances to hand sanitisers, soap and self-care, so brands changed their manufacturing to meet the change in demand. The NPD Group (2021) tells us that in 2020 make-up had the greatest decline of 35%, in comparison to 2019. Whereas anti-acne skin care products increased by 32% due to the development of ‘maskne’ caused by the increased face mask wearing. Brands that closely followed the requirements of the consumer were able to remain extremely competitive even during the unsettling economic era of COVID-19.
The post-pandemic chapter in 2023 is new territory for beauty and personal care brands to navigate, with the exploration of creative commerce becoming an increasingly important aspect of the success of brands and with the rise of social media influence, creativity is rife.
Creativity within a cosmetics brand is vital to remaining competitive and setting one business’s product separate from another. Art and the cosmetics industry are interlinked, especially when considering colour cosmetics such as makeup; therefore, bridging the gap between creativity and commerce is important. Many brands collaborate with artists and other brands to bring out unique lines of products that display a more artistic approach than their usual products, where cosmetics will have more intricate packaging and be more visually appealing to the consumer. Ipsos (2018) states that 72% of American consumers agree that attractive packaging on a product will influence their purchase.
ColourPop frequently collaborates with influencers and celebrities, creating limited-edition collections which sell out quickly because the audience is widened to include both ColourPop lovers, but also fans of the brand they’ve collaborated with. This makes the brand more competitive because consumers are seeking out these creative collections which are exclusive to a singular brand. This widens the market to which the cosmetics appeal to, ColourPop currently in 2023 has a range of collections attracting younger audiences, such as Disney and Star Wars, but in the past have also had more mature collaborations with influencers such as Alexis Ren. This is an easy way for creative directors to bridge the gap between creativity and commerce, whilst also offering something new to a widened target audience.
Reference List:
Amed, I., Berg.A., Hudson.S., Rao,P., Jindal,D., Saint Olive, A., Weaver, K., Balchandani, A., et al (2023) The State of Fashion: Beauty. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the%20beauty%20market%20in%202023%20a%20special%20state%20of%20fashion%20report/the-beauty-market-in-2023-a-special-state-of-fashion-report.pdf?shouldIndex=false (Accessed 19 October 2023).
NPD (2021) The changing the face of prestige beauty. Available at:https://www.npd.com/news/pres-releases/2021/the-changing-the-face-of-prestige-beauty/ (Accessed 19 October 2023).
Ipsos (2018) Most Americans Say That the Design of a Product’s Packaging Often Influences Their Purchase Decisions. Available at: https://www.ipsos.com/en-us/news-polls/Most-Americans-Say-That-the-Design-of-a-Products-Packaging-Often-Influences-Their-Purchase-Decisions (Accessed 19 October 2023).
Image Reference List:
ColourPop (2023) Star Wars Collection. Available at: https://colourpop.com/products/wherever-i-go-he-goes-shadow-palette-set (Accessed 19 October 2023).
Profit Featured Image (no date) Available at: https://www.vecteezy.com/vector-art/11773042-salary-dollar-rate-increase-statistic-business-profit-growth-margin-revenue-finance-of-performance-return-on-investment-roi-concept-with-arrow-icon-coin-flat-vector-illustration-isolated-on-white (Accessed 19 October 2023).