Beauty’s Big Problem

Kate Benson of Martens & Heads!, declares: Beauty is broken, from prestige to mass.

Written by Kate Benson

Author Bio: Kate Benson, founding managing director, Martens & Heads!, NYC

Today’s savvy beauty consumer is not loyal to one store or one brand, so the retail experience is critical. Since you can get pretty much anything online, there has to be a viable reason to go to the store in the first place. Fortunately, the retail experience provides two things that the Internet can’t—human interaction/feedback and the chance to touch, feel and play with the products.

Fast-moving specialty stores like Sephora and Ulta capitalize on these experiential opportunities while traditional (and thereby slower) department stores are falling behind. The tide is changing for some, however. Macy’s, for instance, is rolling out a capsule concept called “Impulse,” which is modeled after self-service stores like Sephora. They are targeting trendy, youth-focused brands to partner with, and it is becoming quite successful.

Brick and mortar channels can use this advantage by highlighting the proximity to work, test, touch and explore. Self-service is a more accessible option for the consumer.

Within mass channel, merchandising rules are being broken, which is influencing packaging design. Some companies are trying to cross-merchandise products according to consumers’ needs, instead of product categories. P&G has recently restructured while keeping this in mind, and now has a HE division and a SHE division. Addressing customers’ total needs—providing total solutions, as well as great products—is the future of beauty. The brands and retailers who understand how to evolve with the customer will be successful in the long run.

Beauty’s progression is currently following in the steps of chains such as Target, H&M and Gap, by going into collaboration with high-end designers. Linking labels considered to be prestige, and unaffordable, with megastores, at once marks them down to the level of being bargain-priced, a steal, and most importantly, applicable to the masses. By simply packaging a high-end product with low-cost worth a new market has been opened—one much larger in scale than the small corner of occupants in the top earning percentile.

Noticing an opportunity, Kiehl’s is leading the path among beauty retailers, and has joined forces with contemporary artist Jeff Koons, to produce limited edition products for charitable benefits. High fashion is packaging itself to the masses and now museum-worthy art will follow suit. Now we can all say that we own a Koons.