Beauty Store Business

DEC 2017

Beauty Store Business provides solutions for better retailing! New products, industry news, savvy business moves and important trends affecting both brick-and-mortar and online retailers are included in each issue.

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Page 9 of 71

6 December 2017 | Kim Henderson, Executive Editor "Lululemon has worked with more than 1,700 local store ambassadors to drive in-store traffic and loyalty." Biz, Ambassadors and Best-Sellers I n early October, I made my way to the 16th Beauty Biz Roundtable (BBR) in Santa Monica, California, at the Le Meri- dien Delfina Santa Monica Hotel. BBR is a smaller, more intimate bi-annual beauty executive event on the West Coast that truly delivers a quality experience. What's unique about BBR is that the breakfast, roundtable format and luncheon provide multiple opportunities to connect with dynamic, knowledgeable and experienced beauty brand marketers and develop- ers, business leaders and executives to exchange ideas and, of course, business cards! I have found the distilled content provided by the keynote speakers and, on a more personal level, the round- table facilitators to be highly relevant and supremely useful. Giulia Prati, research lead at L2, one of this BBR's keynote speakers and the facilitator of my first roundtable of the day, shared L2 insights and data about Ins- tagram. I was surprised to learn that big- name beauty influencers (think 1 million + followers) who command top dollar to pro- mote brands are actually well worth the big spend for marketers with big budgets. They deliver high engagement, which can work well for a big product launch. And while influencers in the 200,000-follower range are more affordable, L2's research shows their engagement rates are not quite as high as bigger influencers, but are still high enough for a more sustainable cam- paign. Prati also noted how L2's research shows dramatic drops in engagement when influencers mention a brand (drops by 47 percent) or visually show a product (drops by 50 percent), with the exception of a few influencers who tend to defy the norm. L2's insights are particularly helpful to better run an influencer marketing campaign, but what was the takeaway for retailers? The most obvious, to me, is that retailers wanting to attract Gen Z and millennial consumers need to stock the products these influencers talk about. Speaking of Gen Z, you can learn more about this new generation of consumers in our feature starting on page 10. My second roundtable facilitator, Brian Freeman, CEO and founder of Heartbeat, described how retailers like Lululemon work successfully with local ambassadors to draw customers to their stores. Ambas- sadors are not influencers, but rather active social media users (primarily Gen Zers or millennials) who already like a brand and happily post about it in order to be associ- ated with the brand—payment is secondary. They simply mention or talk about the brand to their followers of family and friends. Engagement is high—and effec- tive, Freeman told us. Perhaps that's why Lululemon has worked with more than 1,700 local store ambassadors to drive in-store traffic and loyalty. Are you using Instagram to drive in-store traffic? Yet, driving traffic to stores is only half the equation; retailers also need to stock the products consumers want. That's why we have culled together the best-selling products of 2017 from a wide variety of brands for our Best-Sellers Guide! Don't miss it starting on page 16. ■ EditorÕs Note

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