Direct Selling Beauty Channel: Facing the era of Velocity, Experimentation & Digital Transformation
- Marca Marketing
- Sep 12
- 4 min read
Updated: Sep 26
Today’s booming beauty industry is facing a challenge of velocity, experimentation, and digital momentum, representing $441 billion global beauty market with a steady 7% annual growth from 2022 to 2024. Accordingly, the WWD presented the 2024 Top 100 Beauty Companies that constituted 59% of the global industry with $252 billion, including the top 6 direct selling and MLM beauty companies like: MaryKay, Natura, Belcorp, Amway, Yanbal, and Befra (Jafra), which represent 5% in the Top 100 beauty companies' sales.
In fact, according to the latest McKinsey study, the beauty industry is living a moment of definition and expansion. Consumers are pushing brands to adapt to new beauty preferences, a consequence of shifting demographic profiles that demand digital transformation and hyper-personalization; justification enough for the direct selling channel to move to an evolutionary stage.
1. Focus on Digitalization
The digital acceleration and the increase of social commerce reshape the online beauty experience and center the attention on:
Emphasis on Mobile beauty platforms.
Twist the website walkthrough on a sensorial experience.
Robust customer service through an AI shopping assistant according to customer preferences, with particular attention in the checkout process to reduce the abandoned cart percentage.
Invest on Amazon as a crucial part of your Omni-channel strategy. Why? Fifty cents in each American dollar used to be spent on Amazon. A great idea could be designing a plan with “dupes” products, using them as “entry doors” to gain brand visibility and product experience, ensuring the call to action to the original brand site. Furthermore, a fantastic example of the "dupes" strategy is the Charlotte Tilbury brand, particularly its famous Magic Cream Skincare.
Leverage education data initiatives for the marketing & sales team.
To learn more about Omni-Channel strategy, read one of our previous articles: Boost your brand strategy by applying 7 Omni-channel touchpoints, which also presents the LEDERM by L’Bel introduction plan (from Belcorp group) as a case study.
2. Personalization as foundation
As a McKinsey study asserted, “Customer wants to feel seen”, but how to translate this powerful insight during their customer e-commerce experience? Brand/Portfolio, Value & Origination.
So, deep dive into the following question: Does the brand portfolio include the products that I need? Does the branding approach share my values? They provide me exclusivity through my ethnicity and gender? In short, entice by providing a customer intimacy experience. These kinds of changes guarantee traction. A great example of hyper-personalization on a brand/portfolio is to provide product recommendations based on beauty trends. For instance, include a list of all products in demand that your brand offers, such as Hyaluronic acid, Caffeine products, Niacinamide, and Retinol, and facilitate web searches under their respective technology.
71% of consumers expect personalization, and 76% become frustrated when they don’t find it. Strategy without personalization is a significant risk, creating a low or not loyalty atmosphere. The takeaways: Improve your web & mobile experience, highlight innovative product recommendations (as previously mentioned), offer targeted promotions, and reward their purchases.
A powerful exercise I recommend is a brainstorming session with your team to rebuild your customer buyer persona, followed by a walkthrough of your site and platforms overall to confirm if the brand is effectively speaking to them through personalization. If not, let us help you to do it!
3. Track demographic group shifts
As we know, the demographic profile changes, especially in the Gen Z and Millennial groups, will have a massive impact in the upcoming years.
Additionally, the undeniable growth of Hispanics in the US economy and their role as a passionate consumer with high penetration in the beauty product market. For instance, fragrance is the category expected to lead growth through to 2030, and today it is the pivotal category with significant penetration among Gen X, Millennials, and Gen Z.
Profiles with a strong preference for shopping on e-commerce and social media (as Amazon & TikTok Shop) are very influenced by online videos and online reviews. Another consumer behavior to watch is the fastest-growing segment in beauty and personal care, specifically targeting the teen market (the seedlings). According to Nilsen IQ, this segment is valued at US $25 billion today and is projected to reach US $33 billion by 2028, being reshaped by social media trends, rising disposable incomes, and the influence of Gen Alpha and Gen Z.
Indeed, this is reason enough to push brands & manufacturers to rethink their marketing strategies, taking responsibility for engaging the next generation.
4. Deliver unforgettable brand experiences
Brands must rebuild their marketing strategies, centering their investment on delivering memorable brand experiences that communicate their DNA and reinforce their core values.
Direct selling companies used a force leading for women, with a responsibility to contribute and support their role in society, there by empowering women. Therefore, focus your strategy on activations that foster an emotional connection with your audience, appealing to and understanding their needs. For instance, wellness and entertainment are the most engaging activations that resonate in today’s profile, so focus on them and work on activations across all touchpoints. Summer Friday, beauty brand could be a great example, having worked on activations that communicate their brand philosophy through the Summer Fridays Endless Summer.
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