Beauty Store Business

JUL 2018

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 17 of 91

16 July 2018 | To get to know what the women in this demographic are looking for, we turned to the pros at global market research firm Mintel and found, unsurprisingly, that millennial and Gen Z (also called iGen) beauty consum- ers are focused on appearance. Millennial women are hyper-engaged when it comes to their beauty routines, and are much more likely to keep up on hair, makeup and skincare trends than women overall. According to the firm's 2017 report, "The Millennial Beauty Consumer," millennial women use the most beauty products, have stronger makeup application skills and are more likely to experiment with their cosmetics when compared to women of all generations. This increased engagement with beauty has led to more spending on hair care, makeup and skin care over the last three years. What millennial women are spending on is also different, with a self-reported penchant for natural and high-end brands. TRANSLATING LIKES TO DOLLARS The increased enthusiasm in the younger market segment becomes apparent when looking at overall profit trends. Millennials have propelled the beauty industry well into the multibillion-dollar range. Mintel's "U.S. Beauty Retailing" report values the market at $54.8 billion–with sales projected to reach $59.3 billion or more by 2022. Where consumers are buying, and what they're looking for while shopping, varies according to generation. For those in the iGeneration, ages 12 to 24, 39 percent seek out a specialty beauty retailer, more so than any other group. Women of all ages are most likely to buy from a mass merchandiser (47 to 62 percent). Significantly fewer millennial and iGeneration women (respectively 24 and 23 percent) purchase cosmetics at department stores. To capture this sought-after segment of consumers, retailers are changing the way they sell their products by creating special sections of trending items to draw in younger customers. RETHINKING SPACE AND STAFF Millennial and iGeneration women like to have an experience. When asked about the services or offerings that might draw them to choose one beauty store or online retailer over another, they overwhelmingly responded with "personal makeup artists, beauty product demonstrations or events, kiosks/stations, the ability to customize or create my own beauty products as well as in-store beauty services and augmented reality tools to try on makeup." Offering up trending products–and Instagrammable moments with those products–will help position your store as a go-to destination. In creating the kind of shopping experience these young beauty consumers desire, it's important to look closely at what makes the millennial and iGeneration shopper unique. It could affect who you choose to hire. Gen Z and millennial women prefer to find a product on their own rather than asking a sales associate, at 67 and 61 percent, respectively. The iGeneration in particular are overwhelmingly influenced by beauty bloggers; 27 percent value their advice more than recommendations from in-store staff, while only 16 percent of millenni- als and 11 percent of all women felt the same. However, employees are still critically important. Twenty-five percent of iGeneration women are interested in personal makeup artists, and 18 percent feel "sales associates are influential when it comes time to purchase." In order to capitalize, seek out hires with an online presence or those who double as makeup artists; they can educate your consumer and give them an in-store taste of beauty blogger know-how. CASE STUDY One paradigm for successfully capturing the younger consumer comes from Shen Beauty, located in the ultra- trendy Carroll Gardens section of Brooklyn, New York. Shen founder Jessica Richards opened the store in 2010, "Many people are not storytellers like we are; we want the customers to know what they are buying, why it was made and how it is going to help them." —Jessica Richards, founder, Shen Beauty At Shen Beauty in Brooklyn, New York, a carefully curated selection of quality products and modern décor attract a younger clientele. Courtesy of Shen Beauty

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