The beauty industry is no stranger to influencer marketing. According to Statista, the global influencer marketing value was $21 billion in 2023. Right now, it stands at $24 billion. Over the past decade, brands have spent millions partnering with celebrities and mega-influencers, leveraging their massive followings to reach consumers on a global scale. Traakr’s recent report showed that macro (250,000-1 million followers) and mega-influencers (1 million-5 million followers) increased Brand Vitality Score (VIT) impact by 159% and 68% year over year, respectively. This landscape, though, is rapidly evolving, as in recent years, brands have increasingly turned their attention to smaller, more niche influencers—known as nano- and micro- influencers—who offer a unique blend of authenticity and audience trust. Micro-influencers are also often more cost-effective than their macro counterparts. They charge lower fees for promotions, making them a more affordable option for brands looking to stretch their marketing budgets. However, this shift is taking on a new dimension: Beauty conglomerates are not merely collaborating with micro-influencers on one-off campaigns, but are incubating them and treating these individuals as long-term business assets.
“This new strategy represents a significant change in how beauty companies view influencer partnerships,” Windsor Western, President and co-founder of Her Campus Media, says to BeautyMatter. Her Campus Media is a media agency with a portfolio of Gen Z media brands and marketing solutions, through in-house communities like Her Campus and InfluenceHer Collective. They get beauty brands like Sol de Janeiro, YSL Beauty, Viktor&Rolf Fragrances, Clinique and more, into the hands of up-and-coming influencers and content creators. Rather than short-term marketing tools, micro-influencers are being developed like start-ups, receiving mentorship, resources, and sometimes even equity in the brands they work with. “This incubation model is a win-win for both parties,” Western continues. “Influencers benefit from the guidance and exposure of established companies, while beauty brands cultivate a pool of trusted voices to carry their message to highly engaged audiences,” she says.
Nano-and Micro-Influencers
For much of the last decade, macro- and mega-influencers and celebrities dominated the beauty marketing space, with brands like Maybelline, Estée Lauder, and L’Oréal turning to these influential figures to sell products to their millions of followers and banking on the belief that bigger followings equaled better results. Yet, over time, cracks in this approach began to show, as their engagement rates—likes, comments, and overall interactions—declined. According to Influencer Marketing Hub’s State of Influencer Marketing: 2023 Benchmark Report, engagement rates on platforms like TikTok range between 10.53% for accounts with over 1 million followers, and 15.04% for accounts with 1,000 to 5,000 followers. In platforms like Instagram, accounts with fewer than 5,000 followers see an engagement rate of about 4.21%, while those with more than 100,000 followers saw less than 1%.
“Numbers like [the 1% for mega-influencers] may not seem like a lot, but when you compare and contrast it to their follower count, it shows a very significant drop in comparison to other smaller influencers,” Kate Morgan, founder of beauty and wellness agency, Morgan Publicity, says to BeautyMatter. “It seemed as though mega-influencers became less relatable to everyday consumers, and their posts often looked overly promotional, making them met with increased skepticism from consumers,” she added. Enter micro-influencers—individuals with follower counts ranging from 10,000 to 100,000—who have gained traction precisely because of their relatability. This shift away from mega-influencers comes after years of diminishing returns on large-scale celebrity endorsements. According to Hubspot’s recent Social Media Marketing Report, only 16% of brands say they would now work with mega-influencers with more than 1 million followers, as against the 80% who want to work with those with 100,000 followers or less. “For beauty brands, [these numbers] represent an opportunity to tap into deeply engaged audiences, often at a fraction of the cost of a celebrity endorsement,” Morgan, whose beauty clients include Ole Henriksen and The Crème Shop, says.
Beauty Conglomerates Incubating Small Influencers and Brands
Rather than viewing micro-influencers as short-term partners, beauty conglomerates are increasingly adopting a long-term, strategic approach to their relationships with these individuals. Some are providing micro-influencers with mentorship, resources, and opportunities for growth. This incubation is helping influencers develop their personal brands, while aligning them closely with the larger goals of the beauty companies they partner with. One of the earliest examples of this strategy is L’Oréal’s Beauty Squad initiative, launched in the UK. The Beauty Squad consistes of a select group of influencers, including Patricia Bright, Emily Canham, Kaushal, Ruth Crilly, and Victoria Magrath, who work closely with L’Oréal on content creation, product development, and brand campaigns. Unlike traditional influencer marketing, which often centers around a single post or product promotion, L’Oréal’s Beauty Squad is built around long-term collaboration.
Similarly, Sephora’s #SephoraSquad reflects a similar shift in how beauty companies are engaging with micro-influencers. Launched in 2019, Sephora Squad selects a diverse group of influencers each year to represent the brand. These influencers, some of whom include Chicago-based Erick Glam, who started off with a relatively small base of just under 6,000 followers, aren’t just handed products to promote; they are integrated into Sephora’s ecosystem, given access to its vast product lines, and offered mentorship from industry professionals. While the program allows influencers to maintain their personal authenticity, it also positions them as long-term partners in Sephora’s marketing strategy. “We think of them as a small business,” Abigail Jacobs, Sephora’s Senior Vice President of Integrated Market and Brand, said in a statement.
“What makes the incubation of micro-influencers particularly appealing to beauty conglomerates is the potential for sustained authenticity and trust. Consumers increasingly value influencers who are perceived as genuine, and micro-influencers tend to build stronger personal connections with their followers,” Danika Daly, founder of Danika Daly Public Relations—a creative communications agency that specializes in PR, influencers' collaborations, partnerships, social content, and events—says to BeautyMatter. “From a business perspective, this strategy offers several clear advantages. The higher engagement rates of these smaller influencers—fueled by their niche focus—translate into a better return on investment. Brands working with micro-influencers can target specific customer segments more effectively than with a broad celebrity endorsement, ensuring that their marketing dollars are spent reaching consumers who are more likely to convert into loyal customers,” she continues.
One of the most notable recent examples of this trend is the Sephora Accelerate program. In 2023, and continuing into 2024 and 2025, Sephora has broadened its Accelerate program, a hybrid of incubation and accelerator efforts, to include micro-influencers and small beauty founders who are looking to launch their own beauty brands.
Participants receive mentorship, product development assistance, and even access to Sephora’s powerful retail and distribution networks. By supporting influencers early in their entrepreneurial journeys, Sephora ensures that when these brands succeed, they already have a strong partnership in place.
Similarly, L’Oréal’s Beauty Tech Accelerator, which remains active in 2023 and 2024, is another shining example. Through this initiative, L’Oréal identifies promising start-ups, influencer-led or otherwise, and provides them with mentorship, funding, and technical support. The goal is to nurture beauty businesses that incorporate innovative tech solutions, like AI-powered skincare diagnostics or sustainable packaging. By partnering with influencers who are already speaking to key beauty communities, L’Oréal positions itself at the cutting-edge of both beauty and technology.
Why Incubation Works: Authenticity, Growth, and Market Penetration
The beauty industry is evolving in a direction where authenticity is paramount. “Consumers, particularly younger generations, are drawn to influencers who they perceive as genuine and relatable,” Western says. “Mega-influencers and celebrities often struggle to maintain that authenticity, especially when promoting a wide range of products. Whereas, in contrast, micro-influencers often focus on specific niches, giving them a more focused and trusted voice within their communities,” she continues.
For beauty conglomerates, incubating these influencers offers several advantages. Micro-influencers and smaller brands frequently serve niche markets that large beauty brands might find difficult to penetrate through traditional marketing. Whether it’s eco-conscious beauty consumers or those focused on diversity and inclusion, these influencers provide insights into consumer needs that big brands might miss.
“Also, the incubation model fosters entrepreneurial growth for influencers,” Daly adds. With the backing of a beauty giant, influencers can develop their personal brands into larger business ventures. “For instance, influencers who start by promoting a skincare product may, with the right guidance and resources, expand into creating their own product lines, which the conglomerate can then distribute at scale,” she continues. This way, beauty companies are creating a symbiotic relationship where both the influencer and the conglomerate grow together.
What’s Next for Micro-Influencer and Brand Incubation?
“So far, and as we move further into 2024, the trend of incubating micro-influencers shows no signs of slowing down. We’ve seen that DTC beauty brands have been in constant rise, and conglomerates are likely to increase their focus on nurturing influencers who can act as both marketers and business partners,” Morgan says. “Also, brands are constantly seeking ways to differentiate themselves in this increasingly competitive market, and micro-influencers may offer a key advantage—authenticity, niche expertise, and a loyal customer base,” she continues. By incubating influencers and small beauty brands, beauty conglomerates can develop a pipeline of trusted voices who help shape the brand’s image and drive long-term growth.
