What's wrong with Beauty?!
What’s Wrong with Beauty?!
As I write this, in the last quarter of 2024, it seems that the beauty industry is in the middle of a spectacular boom period. Here in the UK, stores like Sephora, Space NK and Boots are packed with customers and brands like Sol de Janeiro and Drunk Elephant are reported to be enjoying exponential growth. So - what's wrong with Beauty? Maybe nothing!
But for every success - where the Board is cracking open the champagne - there are dozens of other Boards wringing their hands, and scratching their heads as they grapple with a landscape where success often feels arbitrary, driven less by product quality or innovation and more by social media mastery and the whims of Gen Z and Gen Alpha consumers. Just two recent examples - Morphe and Glossier, once both iconic - are now finding it hard, closing all their shops, and seem to have lost touch with what made them successful in the first place.
The Fragile Nature of Beauty Success
Today’s beauty brands walk a fine line; tiptoeing on fleeting trends that can bring spectacular success or lead to a road to nowhere.There’s no doubt that certain things— notably brilliance at the social media game, colourful packaging, influencer partnerships, and an (at least) appearance of sustainability — can (although it’s not guaranteed) propel brands into the spotlight. But for some, the formula quickly loses its magic.
Let’s look at those examples again. Morphe became a sensation by riding the wave of influencer culture, collaborating with YouTube star James Charles, and using social media to attract a massive following. But when the tide turned, so did Morphe’s fortunes; leading to the closure of all its stores and a new business model. Similarly, even Glossier, with those cool pink shops, cult products, and a strong, founder-led sense of community, faced challenges as it started to lose its community appeal and ended up closing those quirky shops. Both brands seemed to embody the ballistic trajectory of a modern beauty brand … what goes up (spectacularly) must come down.
At times like these, failing brands will be looking at the brands that are winning and be tempted to copy some or all of their approach. After all – it’s just a formula, right? Of course that’s tempting, but it could also be a road to ruin. The key to long term success is brand authenticity – knowing who you are, why you exist and sticking to those founding principles. Billion dollar+ brands like L’Occitane and Aesop were 20-odd year overnight successes … they just focused on doing what they should be doing … and eventually customers found them. They never deviated from their Founder’s vision as they grew – even if it was slow at first. It’s rare that there are shortcuts to long term success; over the medium and long term, authenticity and sticking to your core identity matters more than constantly shifting to meet the latest trend.
Why Some Brands Are Winning
I’d suggest that the brands that are thriving in this crowded, sceptical market, share several traits that seem to resonate with today’s beauty shopper:
1. Authenticity and Founding Principles: Successful brands know who thery are and avoid chasing every new trend. LUSH has built its reputation by staying true to its founding values in every aspect of its business. Their obvious and honest commitment to transparency, eco-friendly packaging, taking care of people and fighting cruelty-free practices in the industry, has resulted in a global community of genuine ‘Lushies’ who will stand by the company even as trends shift.
2. Mastery of Social Media: For brands like Sol de Janeiro, ColourPop, and Drunk Elephant, social media is the secret sauce for engaging its Gen Z and Gen A customers. These brands seem to be smashing it out of the park with the way they have built influencer communities and created incredible social buzz through UGC, influencer partnerships, and interactive campaigns that feel authentic. In a digital-first world, a brand’s social presence is as important as the products themselves –think about that for a minute … it’s actually crazy. But that’s what we face today. Interestingly, LUSH has withdrawn from all the major social channels… a very brave (acccording to the English definition ;-)) – if principled – move.
3. Bold, Eye-Catching Packaging: Beauty is inherently visual, and vibrant packaging has become a defining feature of brands seeking to stand out. Not only does this aesthetic approach create ‘shelfie’ appeal, it also makes products feel aspirational and fun to own. Brands like Fenty Beauty have perfected packaging that reinforces their identity and catches attention online and in stores.
4. Backed by Big Beauty: Many winning brands benefit from the support of the giant, all-conquering, beauty groups (and many that don’t, wish they did and are working towards a sale to them!). These big groups provide resources, massive access to distribution, and data insights. This support allows brands to maintain a steady stream of new products, big marketing budgets, and efficient operations that smaller, independently owned ethical brands can’t match.
5. Strategic “Ethics”: For many successful brands, ethics and sustainability could be argued to be part of a strategic image rather than a true commitment. ‘We’ll do it because the customer says they want it … but only as long as it doesn’t cost us anything…’. This approach provides a sustainable “look” without having to re-engineer the entire development cycle and supply chain. It can make customers feel better – as long as they don’t look too closely.
6. Constant Newness: We hear all the time that Gen Z and Gen Alpha consumers crave novelty. Brands that frequently launch new products, limited editions, and collaborations seem to be staying relevant by feeding into the desire for what’s “next.” This strategy helps keep brands top-of-mind but it’s a risk when brands rely solely on newness without a strong base of products people want to buy time and again.
The Influence of Gen Z and Gen Alpha
These younger generations are redefining beauty standards. Raised on social media and well-versed in spotting insincerity, they expect brands to align with their values but also crave constant excitement. Their loyalty is notoriously fickle; brands like Morphe and Glossier illustrate how quickly Gen Z and Gen Alpha can move on.
For brands, this means that staying relevant isn’t just about keeping up with trends; it’s about doing so while remaining true to core principles. LUSH’s dedication to sustainability and experiential retail — where being in-store is fun, sensorial and a real reinforcement of its values, has helped it build lasting trust and loyalty. Unlike many competitors, LUSH doesn’t chase trends and lets hope that its success provides leadership to others to be consistent and transparent in an era of greenwashing and consumer scepticism.
Can Ethical Beauty Brands Thrive?
People say they want sustainable products, but they don’t want to pay more and they want those products to work just as well as the unsustainable ones. What to do? Can sustainable beauty brands survive and grow in a superficial, trend-driven market?
Well, if they are going to thrive, ethical brands have to innovate, dare to be different, be fun and challenge norms – a serious message of doing good rarely cuts through. They have to add on a healthy dose of fun and make that front and centre of their communication while doing everything they can to live up to their values in the background. Gens Z and A expect things to be done right, but it’s rarely a way to win commercially if you make that your main/ only message.
The Role of Experiential Retail
Some brands dare to have shops! A massive cost and a massive opportunity as experiential retail remains a powerful driver of loyalty. Retailers like Sephora and Space NK – in their own way - offer immersive spaces where consumers can explore, try, and learn about beauty. If you look at the crowds of Gen A shoppers packing the aisles of Sephora – with their parents in tow – it seems to be working.
LUSH and, to an extent, new French (and very cool) brand AROMAZONE, exemplify this experiential model; creating stores that allow customers to test, smell, and touch products directly. It’s genuinely that very rare thing today – IRL! - and tactile, hands-on in a way that goes beyond marketing claims. For a brand like LUSH, with no social presence to speak of, experiential retail is ‘it’ and the ultimate reinforcement of its values.
So, what’s wrong with Beauty?
In many ways, there’s more right with beauty than there’s ever been. Product quality is generally great, formulas are safe, animal testing is largely a thing of the past – there’s plenty to celebrate. Some would say though, that the beauty industry is at a critical crossroads. Success can feel arbitrary, often driven by social media mastery and consumer whim rather than quality or genuine values.
Businesses like LUSH and AROMAZONE offer glimpses of a path forward, where transparency, immersive experiences in stores, and authenticity become the cornerstones of real community building.
Ultimately, the future of beauty will belong to brands that not only understand trendy customer enthusiasms but also stay true to their identity. Despite all the angst about Gen A’s shopping habits today, authenticity, transparency, and a genuine commitment to sustainability will be essential for lasting success in an industry where consumers are more discerning than ever. Only brands that bridge the gap between surface and substance will build the trust and loyalty to withstand the fickle nature of modern beauty.
