The skincare market is becoming increasingly saturated with a multitude of new products. For brands in the market, this means that offering a differentiated proposition is more important than ever. Stephen Scales, director at marketing consultancy SKIM, shares how skincare brands can better position themselves for differentiation and growth.
To help brands navigate the changing skincare landscape, SKIM conducted extensive qualitative and quantitative research to gain a deeper understanding of consumer motivations and the factors that ultimately drive their skincare purchasing decisions.
Unlock the power of brand value
Our research shows that a remarkable 50-60% of skincare consumers remain loyal to their favourite brands. This highlights the importance of building strong brand value and fostering emotional connections. Interestingly, loyalty was even higher among Gen Z (60%) than older generations (50%), emphasizing the importance of resonating with younger audiences.
Building a brand that consumers trust and identify with can lead to repeat purchases, positive word-of-mouth, and a willingness to pay a premium for your products.
Brand momentum and innovation
Brand momentum, or the ability to stay relevant and set the agenda in the industry, heavily influences purchase decisions. The SKIM research shows that the interplay between brand momentum and innovation significantly impacts consumers’ willingness to pay a premium, even more so than brand prestige alone. A 10% advantage in innovation can drive almost double the willingness to pay more compared to a 10% advantage in brand ‘premiumness’ (3.2%).
However, striking the right balance is crucial. While momentum is important, consumers still seek products they can trust. This makes it important to also clearly communicate the benefits your innovations deliver.
The indie brand disruption
The tension between trust and excitement fuels two key trends being observed in the skincare market:
The rise of indie brands
These brands are changing the category rules. They spark excitement while quickly building trust and disrupting established players. Their success often stems from a combination of factors, including a strong digital presence, authentic brand storytelling, and a focus on specific niches or concerns.
The enduring power of social media
Social media continues to shape consumer opinions and drive choices. It’s a powerful platform for brands to connect with their audience, build community, showcase their values and personality, and leverage social proof (such as the number of likes) to reinforce people’s existing beliefs.
Younger indie brands are rapidly gaining market share. These brands are characterized by:
- Digital-first approach: Founded by and for digital natives, their e-commerce experience and marketing strategies are seamlessly integrated with online platforms.
- Niche focus: They often target specific needs or concerns with specialized hero products, establishing themselves as experts in their chosen area.
- Authenticity and community: They value genuine connections and actively engage their communities, fostering a sense of belonging and loyalty.
Critical strategies for a changing market
Today’s repertoire-based consumers seek more than just product efficacy; they desire a connection with brands that align to their personal values and aspirations. They also seek connections. A few critical strategies to succeed in the market include:
Communicate a consistent brand story
Communicating a consistent brand story is a long-standing principle that remains as crucial as ever. Define a clear brand position, story, and tone of voice that resonates with your audience. Then, ensure consistent delivery of this brand identity across all customer touchpoints.
Drive momentum through innovation and reliability
A robust innovation pipeline is essential for growth. However, continuous innovation must be balanced with a commitment to product quality and reliability.
Identify and embrace authenticity
Learn from the indie brands’ success by adapting to the new category rules and leveraging the brand within your portfolio that has the greatest credibility to deliver a more authentic human connection.