{"id":5237,"date":"2020-09-16T01:31:00","date_gmt":"2020-09-15T20:01:00","guid":{"rendered":"https:\/\/www.intelligencenode.com\/blog\/?p=5237"},"modified":"2025-05-21T15:10:43","modified_gmt":"2025-05-21T09:40:43","slug":"the-tech-effect-what-all-retailers-can-learn-from-beauty-brands","status":"publish","type":"post","link":"https:\/\/www.intelligencenode.com\/blog\/the-tech-effect-what-all-retailers-can-learn-from-beauty-brands\/","title":{"rendered":"What Sets Beauty Brands Apart From Other Retail Categories"},"content":{"rendered":"

This article was first published on\u00a0Forbes<\/a>\u00a0on Apr 23, 2020, and is authored by Intelligence Node<\/a> CEO Sanjeev Sularia in his capacity as a member of the Forbes Tech Council.<\/em><\/p>\n

Recent retail news depicts a tale of two distinct fates: stores that are prospering, and those that are barely hanging on.<\/p>\n

2019 was a tumultuous year in retail that included more than\u00a09,100 store closures<\/a>\u00a0and the liquidation of longstanding chains like Forever 21, Payless ShoeSource, Barneys New York and Charlotte Russe. However, some retailers \u2014 including beauty brands like Sephora and Ulta \u2014 continue to grow. In fact, Sephora is preparing for\u00a0its largest expansion ever<\/a>\u00a0in 2020. What\u2019s more, sales in the global cosmetics industry are projected to hit just under\u00a0$430 billion by 2022<\/a>.<\/p>\n

So, why are some retailers thriving while others are gasping for air? And what sets health and beauty brands apart from other retail categories?<\/p>\n

<\/p>\n

Mind The Gap: Retail Differentiators<\/strong><\/h2>\n

Smart use of technology and recognition of customer values is what shapes the performance of modern retailers. As the leader of an AI-powered retail insights and analytics company, I know that as consumer habits and beliefs evolve, so too should retail strategies.<\/p>\n

To succeed in today\u2019s competitive retail environment, businesses should focus on the following differentiators:<\/p>\n

\u2022 Sustainability:\u00a0<\/strong>Across almost every category of consumer packaged goods, sustainability is where the growth is. When analyzing purchasing data on the sales of over 71,000 products in 36 different categories of consumer packaged goods, the Center for Sustainable Business (CSB) found that roughly\u00a050% of sales growth<\/a>\u00a0between 2013 and 2018 came from sustainably marketed products.<\/p>\n

Therefore, it\u2019s critical for modern retailers to prove to consumers that they make sustainability a priority in business operations, whether it’s sourcing only from sustainable textile mills or running stores on 100% renewable energy. Consumers will gravitate to brands that demonstrate this larger purpose.<\/p>\n

\u2022 Omnichannel Retail:\u00a0<\/strong>Retailers today must be invested in technology in order to survive. Omnichannel retail<\/a> \u2014 or seamlessly connecting many different channels within one shopping journey \u2014 is essential in this effort because by offering multiple platforms for consumers to shop on, retailers will offer increased convenience and personalization and create more opportunities to maximize revenue and loyalty.<\/p>\n

For example, Sephora leverages Google\u00a0ad technology<\/a>\u00a0that displays promotions at local stores on shoppers’ devices depending on their location. They saw increased in-store sales and a significant ROI on this ad spend.<\/p>\n

Unfortunately, large chain retailers tend to exhibit a heavy reluctance to adopt technology, and when they do, it often takes too long to implement. Once it\u2019s in place, the landscape has already changed.<\/p>\n

\u2022 Customer Loyalty:\u00a0<\/strong>Lastly, retailers must understand mass appeal and how to generate a loyal base of customers. This is built upon consumers having consistently positive experiences and feeling like the brand caters to their specific needs \u2013 both in the moment and in the long term. Once these loyal shoppers are defined, retailers should create programs that reward them for their business. For instance, through Ulta’s Rewards Loyalty Program, which has a large customer base of over 30 million members, the company saw that\u00a095% of its sales<\/a>\u00a0were generated through this effort.<\/p>\n

\"Gucci<\/a><\/span>