In Insight, Marketing, Trend

A recent McKinsey report shows how the beauty industry has led the way in embracing digital technologies that are revolutionizing the way consumers engage with brands and shop. This has led to the rise of digital challengers that have taken market share from legacy brands and that continue to define the beauty landscape. The global beauty market—including bath and shower, fragrances, hair care, makeup, and skincare—is a $250 billion global business, according to Euromonitor. Historically, large legacy brands have ruled the industry both in market share and in prestige, but the rise of digitally native brands are shifting the balance of power. 

  • From 2008 to 2016, color-cosmetics challenger brands grew by 16% a year, four times as fast as legacy companies. They now account for 10% of the color-cosmetics market, up from 4% in 2008.
  • Upstarts are primarily single-brand companies that represent almost 50% of the $2.7 billion in venture capital (VC) investments the beauty industry has received since 2008 and 80% of VC funding in 2017.
  • 31% of the beauty companies that get VC funding emphasize “conscious consumerism”—they use natural or organic ingredients and commit themselves to following certain social or environmental standards.
  • Over 70% of the $2.7 billion in VC investments were made from 2014 to 2017.

The Five Reasons for Challenger Brand Success: 

Recent Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search