Key Takeaways:
As the digital beauty landscape becomes increasingly complex, multibrand retailers face mounting pressure to demonstrate relevance beyond product assortment. Today’s consumers often encounter brands through creators, communities, and cultural moments long before they arrive on a retailer’s website, reshaping expectations for how beauty is discovered and experienced. Within this context, European retailer LOOKFANTASTIC is positioning itself as more than an e-commerce platform, building a connected ecosystem that integrates content, technology, and expertise.
For Keely Gough, Managing Director of LOOKFANTASTIC, the retailer’s strength lies in occupying a strategic middle ground between direct-to-consumer storytelling and marketplace scale, carrying up to 600 brands. “At a really simple level, we sit in the middle of two worlds, and that is where our strength lies,” she explained to BeautyMatter. “LOOKFANTASTIC bridges the gap between DTC storytelling and authority. We do this with a level of curation, authority, and customer understanding that neither can fully replicate on their own.”
This positioning has become increasingly significant as brands diversify distribution strategies and consumers prioritize credibility when navigating crowded product categories. LOOKFANTASTIC’s assortment strategy reflects its ambition to serve customers across multiple entry points into beauty. “Alongside that, our assortment is intentionally balanced. We bring together brands at one end—accessible, ingredient-led, educational—through to others which represent the pinnacle of luxury skincare,” said Gough.
Curating Credibility in a Crowded Market
As product innovation accelerates and indie brands continue to influence consumer expectations, merchandising strategies are increasingly shaped by cultural relevance and evolving routines.
“When we think about onboarding brands, the starting point is always the customer,” Gough explained. “We look for brands that bring something new, whether that’s innovation in formulation, a unique point of view, or the ability to connect culturally with our audience. It’s not just about filling gaps in the assortment, but about strengthening our authority.”
Balancing heritage prestige with emerging disruptors remains central to maintaining both trust and dynamism. “Heritage brands bring trust, scale, and proven performance. We are born out of a professional salon environment and have a longstanding and loyal professional customer,” said Gough.
Meanwhile, emerging brands are helping to identify future category growth and connect with digitally native audiences. “Emerging brands bring energy, newness, and often a closer connection to evolving consumer behaviors. We use our strong presence on TikTok Shop to further support identification of brands and emerging categories,” Gough continued, explaining that LOOKFANTASTIC’s role is to create an environment where both can thrive and, importantly, where they can complement each other.
Category performance continues to reflect wider industry momentum behind efficacy-led innovation and wellness integration. “In terms of growth, we’re seeing continued strength across skincare, particularly in results-driven, ingredient-led products (within our Derm category we are seeing +20% YoY growth UK YTD) and K-beauty, where revenue has more than doubled YoY, supported by the launch of six new brands YTD. We’ve also seen strong performance across our cosmetics category with customers leaning into complexion, lip, and cheek products.”
Price segmentation is becoming less predictive of purchasing behavior. “From a pricing perspective, what’s interesting is that growth isn’t confined to one segment,” she explained. “Customers are increasingly mixing and investing in hero products while balancing with more accessible staples. That’s influencing our merchandising strategy. It’s less about siloed price tiers and more about curated routines and intelligent combinations that deliver real value.”
Moving Beyond Transactional Retail
Over the past five years, LOOKFANTASTIC has recalibrated its operating model in response to changing expectations around discovery and convenience. “The biggest shift has been moving from a traditional e-commerce mindset to a much more connected, experience-led model,” Gough said.
As consumers increasingly seek guidance when navigating complex categories, diagnostic tools are becoming a key component of digital retail strategy. “Discovery today looks very different from five years ago. Customers don’t just browse our site; they expect guidance. That’s why we’ve invested in tools like our foundation finder and more diagnostic-led journeys,” she continued. According to Gough, the company is about simplifying decision-making in a category that can often feel overwhelming, with AI playing an important supporting role as they scale and invest further.
Convenience is also evolving beyond delivery speed to encompass frictionless experiences across the entire purchase journey. Meanwhile, sampling and curated product edits are reinforcing perceived value beyond price. According to Gough, “It’s about what you get in return, whether that’s expertise, exclusivity, or experience. Initiatives like our fragrance sampling and curated edits are a direct response to that, allowing customers to explore before they commit.”
A Platform Model for the Future of Beauty
Operational agility remains closely tied to LOOKFANTASTIC’s integration within its parent company, THG plc. “Being part of THG gives us a significant advantage, particularly in areas that customers may not always see directly but absolutely feel,” Gough said. “From a logistics perspective, the scale and sophistication of our infrastructure allow us to offer fast, reliable delivery across multiple markets. That’s foundational.”
Technology also enables rapid iteration and experimentation. “Where it becomes more interesting is in how we use technology to enhance the customer experience. Whether that’s personalization, testing and optimization, or how quickly we can launch and scale new ideas, having that in-house capability gives us a level of agility that’s difficult to replicate.”
Looking ahead, Gough sees growth emerging at the convergence of technology, culture, and community. AI is also expected to further transform how consumers discover and evaluate products. “We’re already seeing a shift from traditional search behaviors to more conversational discovery where customers are asking for routines, recommendations, and personalized advice. That has the potential to completely reshape how people shop for beauty.”
Growth is anticipated across adjacent categories. “There’s also continued growth in categories like wellness and ‘inside-out’ beauty, as well as services and experiences that extend beyond the product itself,” said Gough. Ultimately, LOOKFANTASTIC aims to evolve from a retailer to a platform rooted in expertise and connection. “Consumers today aren’t one-dimensional. They don’t fit neatly into categories or channels, and they move fluidly between inspiration, education, entertainment, and shopping,” she said. “Our role is to meet them in that reality.”
Community expertise remains central to this ambition. “We have a network of over 3,000 beauty professionals, [including] makeup artists, hair stylists, and skincare experts, which started during the pandemic as a way to support the industry. What we’ve realized is that this is a truly unique asset. It allows us to bring real expertise into the customer journey in a way that feels human and credible.”
For LOOKFANTASTIC, the role of the retailer will become not only about facilitating a purchase but also about guiding, supporting, and inspiring. “That’s ultimately how we see LOOKFANTASTIC’s role evolving—not just as a retailer, but as a platform for beauty discovery, expertise, and community,” Gough concluded.
