The holiday season represents a critical time for beauty brands, as it offers an unparalleled opportunity for them to drive revenue, build brand loyalty, and strengthen consumer engagement. For young beauty companies, this period is especially vital as it allows them to navigate a competitive market. Leveraging creativity, technology, and data-driven strategies, emerging luxury beauty brands and ecommerce platforms like Ogee Beauty, eCosmetics, Dr. Squatch, and Dr. Althea are redefining holiday campaigns to resonate with evolving consumer expectations, gearing up for the season.
Recent data highlights the significance of the holiday season for the beauty industry. Numbers show that the US prestige beauty market grew by 7% year-over-year (YoY) to $22.8 billion between January and September 2024, driven largely by gift sets and seasonal promotions. Deloitte’s 2023 Holiday Retail Survey revealed that consumers surveyed plan to spend an average of $1,652, representing a 14% YoY increase, though a modest four-year CAGR of 2.5% reflects a normalization of trends. This statistic has remained steady despite economic uncertainties. Young brands, keen on tapping into this demand, are aligning their offerings to meet consumer preferences for value, convenience, and uniqueness.
Holiday Marketing Campaigns: Creativity Meets Consumer Connection
Emerging beauty brands are pushing the boundaries of holiday marketing by crafting narratives that evoke emotion and create memorable experiences. For example, brands like Ogee Beauty use Instagram Reels, TikTok, and Meta Ads to create short, engaging videos that showcase festive looks and gift ideas. “Social media remains a cornerstone of most of our efforts,” Alex Stark, co-founder of the indie Ogee, says to BeautyMatter. For brands like Ogee Beauty, influencers play a pivotal role, with nano- and micro-influencers driving authentic connections by sharing personal holiday traditions tied to featured products. “We have a massive creator community that talks about a lot about our products, and we also amplify those content through paid ads on platforms like Meta. They have done a great job in building that out and targeting the different groups of people like different ages, different locations, since we’re multigenerational,” Stark continues.
Brands are also capitalizing on storytelling. A case in point is Dr. Squatch, which launches campaigns centered on self-care, nostalgia, and fun during the holiday season, presenting its products as gifts for personal indulgence amid the chaos. Such campaigns resonate deeply with younger consumers who value emotional connection over traditional advertising. “Our approach always begins with identifying what resonates with our customers during the season. We aim to bring these feelings to life, usually tied into limited-edition products, such as our Harry Potter collection, our holiday themed bar soaps, or our content,” John Ludeke, VP of Marketing at Dr. Squatch, tells BeautyMatter. “We’re always reflecting on previous campaigns to learn and adapt, ensuring we not only meet, but exceed our customer’s expectations,” he continues.
Beauty brands have also tapped into the allure of discounts. Discounting strategies during the holidays are as strategic as they are essential. Young beauty brands are adopting a mix of early-bird discounts, bundled offers, and loyalty perks. Research from Deloitte also showed that 72% of consumers surveyed expect higher prices and plan to navigate inflation by budgeting for fewer gifts, spending more on gift cards ($300 versus $217 in 2022), and seeking out deals (66% plan to shop Black Friday—Cyber Monday (BFCM) versus 49% in 2022), underscoring the importance of timed discounts. Furthermore, there is the delayed shopping surge. According to data from pass_by, an AI-driven geospatial data and predictive analytics platform, early December foot traffic was down over 20% YoY, but the decline softened to single digits by mid-month, as consumers appeared to bypass early-season promos and rush in at the eleventh hour for better deals and more deliberate choices.
Limited-edition products have long been a hallmark of holiday marketing, and young beauty brands are no exception. Skincare brands like Dr. Althea have utilized up to 50% discount and exclusive holiday bundles that combine bestsellers with limited-edition items. “We are offering special discounts for the US holidays and delivering as many benefits as possible to our customers, focusing on the most in-demand products,” Evelyn Lee, founder of Dr. Althea tells BeautyMatter. These offers not only boost sales but also introduce new customers to their product range. “We are offering customers the most popular product this Christmas, the 345 Relief Cream, at a slightly more discounted price. Although 345 Relief Cream is our most popular product, we have been trying our best to promote our sub-demand products like 147 Barrier Cream and Gentle Vitamin C Serum,” Lee continues.
Harnessing AI, AR, and VR for Holiday Shopping
The integration of AR and VR into holiday campaigns is becoming increasingly prevalent among younger beauty brands. Virtual try-on tools, powered by platforms like Perfect Corp., allow customers to experiment with makeup shades and skincare products from the comfort of their homes. This technology has seen widespread adoption, with G2, a software marketplace reporting that brands utilizing AR see a 40% increase in conversion rates.
“We are experimenting with AI product recommendations both natively in our ecommerce browsing, search, and merchandising experiences,” Alex Irvin, Chief Marketing Officer and Co-Founder of eCosmetics, says to BeautyMatter, “but also in a very limited test with chatbots designed to help customers discover what they’re looking for. Very limited rollouts of the chatbots has seen some success, but we are being very cautious as we still see these technologies as helpers, not a replacement for humans,” he continues. BeautyMatter also learned that with the help of AI-powered advertising tools, Ogee saw a 12% increase in return on ad spend and an 8.4% lower cost per new customer purchase during its Labor Day holiday promotion. The holiday season is also a time for fostering deeper community connections. Young beauty brands are using this period to host pop-up events, live-streamed tutorials, and charitable initiatives. These activations not only drive sales but also reinforce brand values and build long-term loyalty.
Navigating Economic Challenges
Despite the festive cheer, economic uncertainties remain a challenge. “Inflation and tighter budgets mean consumers are more selective about their spending,” Stark says. “Young independent beauty brands like ours are countering this by emphasizing value. Transparency around pricing, eco-conscious packaging, and sustainable formulations have become standard practices for us,” he adds. Moreover, flexible payment options like Buy Now, Pay Later (BNPL) services are gaining traction, with Klarna reporting an increase in holiday purchases for beauty products in 2023. Brands that offer these options not only enhance accessibility but also build trust among budget-conscious shoppers.
Furthermore, the real challenge for beauty brands also lies in sustaining momentum after the holidays. Retention strategies include leveraging post-holiday sales, personalized email campaigns, and social media follow-ups. “We measure success through a variety of metrics that reflect both performance and engagement, [including] looking at the overall response to our holiday offerings, such as customer interest and participation, as well as key engagement metrics within our campaigns,” Ludeke says. “Additionally, the holidays provide a unique opportunity to connect with new audiences, so we also consider the effectiveness of reaching and resonating with potential new customers during this time.”
Additionally, data collected during the holiday rush—such as purchase history and customer preferences—fuels future product development and marketing strategies. Brands that effectively analyze this data can create more targeted campaigns and refine their offerings to meet customer needs. “As a multibrand retailer with over 5,000 brands and 65,000 SKUs, we have to use data as a filter. We see that when the customers are uncertain of the future they will not back away from the table but will instead downsize their order,” Irvin says. “They will move from a $60 item to a $40 item. The Lipstick Effect is alive and well and we make it a point to offer both gifts and for you items at varying price levels especially during the holidays,” he continues.
The Future of Holiday Beauty Marketing
As young beauty brands continue to innovate, the holiday season will remain a crucial testing ground for creativity and strategy. The integration of technology, the emphasis on value-driven narratives, and the commitment to community engagement are setting new benchmarks for the industry.
In a competitive landscape such as beauty, it is not just about selling products, but also about creating an experience that resonates with both the hearts and wallets of consumers. For young independent beauty brands, the holiday season is more than a sales opportunity—it is a stage for storytelling, connection, and growth.
