Julia Fanny

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PURPOSE

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Purpose is the final pillar of the fashion and cosmetic industry. Purpose is defined as ‘the reason for which something exists or is done, made, used, etc or an intended/desired result; end; aim; goal.’ (www.dictionary.com, 2019). This pillar serves as a guide for a company’s intentions and demonstrates how it is accepting accountability for whatever issues the industry may have created or contributed to. This helped with creating the corporate social responsibility (CSR). “Corporate social responsibility (CSR) refers to companies taking responsibility for their impact on society,” according to the definition provided by the European Commission (2017) (Londrigan & Jenkins, 2018)

Brands have now placed strategies that explain the direction and long-term goal of a company, making a philosophy within the brand. A brand strategy can be broken down into three: mission, vision, and values/brand personality (Johnson, 2020). The main reason behind finding a strategy is to establish a company’s morals, create a better relationship with consumers and the company, and differentiate one brand from another. Over the last few years, a majority of Gen Z consumers have hyper-focused on a company’s ethics and values of a business, and incorporated this in their decision of where they should purchase (Amed et al, 2019). This in turn shows how vital full transparency and having a strong code of ethics are, to be displayed and followed, not by just the owners of the platform, but by employers within.  

Gwilt (2020) pointed out the importance of the ‘life cycle’ which refers to the journey of the product from raw material extraction to its end and what happens. Many companies have taken this life cycle into their company ethos, such as Lush Cosmetics, who are pioneers of the ‘cosmetic revolution’, Lush Cosmetic is well established for not just being against animal testing but also sourcing materials in ways that Protect, Regenerate, and Restore the planet and communities(We Are Lush, 2022).

Figure 3 Lush Cosmetic Ethical considerations when purchasing materials and Ingredients (We Are Lush,2022)

Figure 3 is shows all of Lush’s Ethics when sourcing ingredients, the company also created Lush Sourcing Hubs which is an entity that buys raw material from communities that produces the goods whilst providing opportunities that directly assists neighbourhood companies, and communities in socially and environmentally responsible manners (We Are Lush, 2022). Taking into account the first process of creating a product, should be a fundamental thought in other brands when establishing their company, and can be easily neglected when expanding a business.

Figure 3b One of the lush sourcing hub in Kenya, where Maasai women are supporting themselves by growing aloe. (We Are Lush,2022)

References

Amed, I., Balchandani, A., Beltrami, M., Berg, A., Hedrich, S. and Rölkens, F. (2019). The Influence of ‘Woke’ Consumers on Fashion. [online] McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-influence-of-woke-consumers-on-fashion

Chandler, A. (2023). Council Post: Why Mission And Value Statements Matter. [online] Forbes. Available at: https://www.forbes.com/sites/forbesbusinesscouncil/2023/08/18/why-mission-and-value-statements-matter/?sh=641e81ed3b8a [Accessed 28 Oct. 2023].

Gwilt, A. (2014) A Practical Guide to Sustainable Fashion, Bloomsbury Publishing USA, London. Available from: ProQuest Ebook Central. [28 October 2023].

Johnson, B. (2020). Brand Strategy: Mission, Vision, Values & Brand Personality | LimeLight Marketing. [online] Limelight Marketing. Available at: https://limelightmarketing.com/blogs/brand-strategy-mission-vision-values-brand-personality/

Londrigan, M.P., & Jenkins, J.M. (2018) “Corporate Social Responsibility and Sustainability.” Pages: 41–60

We Are Lush. (2022). People Care, Earth Care & Fair Share Buying Policy – We Are Lush. [online] Available at: https://weare.lush.com/lush-life/our-policies/people-care-earthcare-fair-share-buying-policy/.

www.dictionary.com. (2019). Definition of purpose | Dictionary.com. [online] Available at: https://www.dictionary.com/browse/purpose.

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PROFIT

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PROFIT.

Profit is of paramount importance in the fashion and cosmetic industry, serving as a foundational pillar. This pillar recognizes the need to generate value, demonstrate growth, and reward those responsible for the business’s success.

The cosmetic industry has witnessed substantial growth in recent decades, achieving a global market revenue of $427 billion in 2022. This industry’s widespread appeal is evident in the projected annual growth rate of 6%, which is expected to lead to an estimated market value of approximately $580 billion in retail sales by 2027, as reported by McKinsey & Company in 2023.

Figure 3a indicates that the largest segment in the market is Skincare, with a significant market volume exceeding $200 billion in 2023. The skincare market is also predicted to see a year-to-year growth of 6% in total revenue sources between 2022 and 2027 (McKinsey & Company, 2023).

Figure 3a showing the 4 main beauty categories global market retail sales (Mckinsey & Company, 2023)

Figure 3b, Notably shows with $91 billion in income in 2023, the US stands out as the top revenue generator in the world. In terms of revenue per person, 2023 will see an average of US$81.42 made (Statista, 2023). The table below reflects how much China and North America dominate the beauty industry, the countries managed to attain $151 billion in 2022.

Figure 3b displaying Beauty retail sales by region and expected growth from 2023-2027 (Mckinsey & Company, 2023)

Various factors can contribute to a company’s profit loss or a decline in a brand’s fortunes. Kapferer (2012) and Thomas and Kholi (2009) have identified nine such factors, which are outlined in Figure 3c (Mitterfellner, 2023).

Figure 3c factors of brand decline and deletion adapted from Kapferer (2012) and Thomas and Kohli (2009) (Mitterfellner, 2023)

Given the current cost of living crisis and rising inflation, many companies are facing economic instability. The beauty industry is becoming increasingly competitive and fast-changing, driven by consumer interest in celebrity-endorsed brands and trendy indie skincare and cosmetics lines, often with significant TikTok followings (Breuer, 2022). To remain competitive, it’s essential to establish a strong online presence, invest in e-commerce capabilities, and ensure a seamless online shopping experience. Leveraging digital marketing and social media is vital to connect with a broader audience.

The role of a creative director is demanding, involving the creation of a feasible creative vision while managing a large team of employees. Striking a balance between business acumen and creative insights is crucial in this position. Karl Lardberg, for example, successfully managed this role for over 50 years by reimagining the brand and what it represented for the owners and consumers as a whole (Mitterfellner, 2023).

References

Breuer, S. (2022). The Impact of Economic Instability on Beauty. [online] beautymatter.com. Available at: https://beautymatter.com/articles/the-impact-of-economic-instability-on-beauty.

Mckinsey & Company (2023). The beauty market in 2023: A special State of Fashion report | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-beauty-market-in-2023-a-special-state-of-fashion-report.

Mitterfellner, O (2023) Chapter 6 – Decline and Resuscitation of Luxury Fashion Brands.

Statista (2023). Beauty & Personal Care – Worldwide | Statista Market Forecast. [online] Statista. Available at: https://www.statista.com/outlook/cmo/beauty-personal-care/worldwide.

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PEOPLE

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Pillar

People.

People are one of the fundamental pillars of the fashion and cosmetic science industry. The pillar refers to the connection of the industries and their consumers, manufacturers, and creators, as well as how impactful one can have on the other.

In accordance with FourHooks, 2015, Gen Z is a demographic group of people following Millennials and is typically defined as the generation born after 1995 followed by the next generation, born after 2010. Gen Zs are often referred to as ‘technoholics’,  having grown up with technology and the internet as an integral part of their lives. (FourHooks, 2015). With 32% of the global population being Gen Z (Chang, 2019), makes them one of the largest demographics in the world which impacts how industries advertise and market products, in order to cater to Gen Zers.

Figure 1 – (Francis and Hoefel, 2018) displays generational differences in terms of context, behaviour, and consumption.

‘Uniqueness’ as one of the factors of consumption, highlights Gen Zs values of authenticity from brands and how they can easily spot any insincerity within a company. Full transparency, honesty, and truth to a company’s identity is essential in building trust between brands and this generation. ‘Digital Engagement’ is probably the most important consideration when it comes to attracting Gen Zs. Utilising social media, influencer marketing, and interactive online experiences to engage with Gen Z as they are digital natives who spend a significant amount of time online.

Expectations of brands to be socially conscious and ethical, showcasing their commitment to diversity, and social causes is something of importance to the ever-conscious cohort. ‘75% of Gen Z consumers will boycott companies that discriminate against race and sexuality across advertisement campaigns, according to a McKinsey study.’ (Cook, 2019). This has impacted companies to showcase and bring inclusivity to the table, shifting the dynamics and beauty standards that indoctrinated the world for so long. Fenty’s 2017 launch of 40 different foundation tones, as it was an industry first, helped enable that shift within the cosmetic community. (CB Insights, 2021).

Figure 2 – (Moran, n.d.) The graph shows the number of Gen Z and millennial consumers who say they have abandoned or decided against a fashion purchase for not reflecting ones values

While seemingly straightforward, inclusivity, digital presence, and innovation are essential for brands to succeed in retaining the interest and loyalty of their target audiences. As the world is continuously evolving and progressing, so should mindset and adaptability of businesses as a whole.

References

CB Insights (2021). How The Inclusive Beauty Movement Is Redefining The Industry. [online] CB Insights Research. Available at: https://www.cbinsights.com/research/what-is-inclusive-beauty/.

Chang, J. (2019). 113 Key Generation Z Statistics 2021/2022: Characteristics & Facts You Should Know. [online] Financesonline.com. Available at: https://financesonline.com/generation-z-statistics/#:~:text=Gen%20Zers%20or%20iGeners%20comprise%2032%25%20of%20the.

Cook, S. (2021). How Millennials & Gen Z Are Pushing Brands On Diversity And Inclusion. [online] www.businessbecause.com. Available at: https://www.businessbecause.com/news/insights/7504/millennial-gen-z-diversity-and-inclusion.

FourHooks (2015). The Generation Guide – Millennials, Gen X, Y, Z and Baby Boomers. [online] FourHooks. Available at: http://fourhooks.com/marketing/the-generation-guide-millennials-gen-x-y-z-and-baby-boomers-art5910718593/.

Francis, T. and Hoefel, F. (2018). ‘True Gen’: Generation Z and its implications for companies. [online] McKinsey & Company. Available at: http://www.drthomaswu.com/uicmpaccsmac/Gen%20Z.pdf.

Moran, G. (n.d.). Gen Z and Millennials 2023. [online] Drapers. Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2023.

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PLANET

PLANET

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Planet is introduced as one of the 4 pillars of the cosmetic industry. Cosmetic products are used on a large scale on a global level, resulting in having major impacts on planet Earth from increasing numbers of chemical compounds concocted to the effects of mass production, as well as the use of plastic packaging.

In 2021,  the  European  Parliament defined,  “The circular economy is a model of production and consumption,  which involves sharing, leasing, reusing,  repairing, refurbishing and recycling existing materials and products as long as possible. In this  way,  the life  cycle of products is extended.” (Boidurjo Rick Mukhopadhyay 2021). The circular economy has highlighted the importance of creating more sustainable products and how to be more ‘eco-friendly’, the fact that the cosmetics corporation is one of the fastest growing industries in terms of economy, with over 5 billion units of goods sold in the EU annually, and an estimated €79.8 billion in 2019 in the EU market (Cosmetics Europe, 2012a, 2019a). Sustainability in relation to cosmetics should have a holistic approach aimed at minimizing the environmental, social, and economic impacts of cosmetic product development, manufacturing, and consumption. It involves responsible ingredient sourcing, eco-friendly packaging, reduced energy and water consumption, cruelty-free testing methods, fair labour practices, and a commitment to long-term economic viability.

The growing concern of emerging environmental pollutants and organic contaminants from products containing UV filters and absorbers, both organic and inorganic, and silicones which are frequently found in cosmetics are essential ingredients. The chemical makeup of the UV filters and silicon have become emerging environmental pollutants in oceans and freshwaters, (Pablo Gago-Ferrero 2012). Tiny particles of titanium dioxide (the main active ingredient in inorganic UV filters) affect fish, algae, and sea creatures. Some research showed that nano-TiO2 had little impact on these aquatic organisms, but it became more harmful when exposed to UV radiation or strong sunlight because it produced harmful substances. Two commonly used siloxanes, cyclopentasiloxane and cyclopentasiloxane, are harmful and can build up in aquatic creatures. (Muhammad Bilal 2020).

“The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.” (United Nations 2023)

There are 17 SDGs, the SDG 11 of life below water is something that the cosmetic industry has grave implications on as the result of products and active ingredients having adverse effects on sea life and preservation.  

Reference

Bilal, M., Mehmood, S. and Iqbal, H.M.N. (2020). The Beast of Beauty: Environmental and Health Concerns of Toxic Components in Cosmetics. Cosmetics, 7(1), p.13. doi:https://doi.org/10.3390/cosmetics7010013.

Gago-Ferrero, P., Badia-Fabregat, M., Olivares, A., Piña, B., Blánquez, P., Vicent, T., Caminal, G., Díaz-Cruz, M.S. and Barceló, D. (2012). Evaluation of fungal- and photo-degradation as potential treatments for the removal of sunscreens BP3 and BP1. The Science of the Total Environment, [online] 427-428, pp.355–363. doi:https://doi.org/10.1016/j.scitotenv.2012.03.089.

Mukhopadhyay, Boidurjo Rick & B.K.Mukhopadhyay, Dr. (2021). What is the Circular Economy?. 4 https://www.researchgate.net/publication/354462443_What_is_the_Circular_Economy

United Nations (2023). United Nations Sustainable Development. [online] United Nations Sustainable Development. Available at: https://www.un.org/sustainabledevelopment/.

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