Beauty accelerators are building the next wave of ‘it’ brands, KraveBeauty exposes waste in the beauty industry, & 2023 Beauty trends

The beauty industry is worth billions of dollars, and it's no secret that insiders hold all the cards when it comes to cashing in on that money. But what if we told you that the next billion-dollar beauty brand won't come from within the industry? Believe it or not, a growing number of beauty accelerators are supporting fledgling brands - and most of these startups are founded by people who aren't insiders. This signals a shift in the industry, as consumers grow increasingly disillusioned with big-name brands.

As consumers' desire for authentic brands grows, these accelerator-bred founders are poised to define the future of beauty. So keep an eye out for their next big innovation - you won't want to miss it!

In this issue, we will cover:

  • AI, AR, and VR into household brands like MAC, NARS, and L’Oreal
  • Beauty accelerators are quietly building the next wave of ‘it’ brands
  • Louis Vuitton and Tiffany & Co. are embracing Netflix’s new ad-supported tier
  • KraveBeauty exposes hidden waste in the beauty industry
  • Arey Raises $4.15M Seed Round to Address Graying Hair
  • What consumers want from Beauty in 2023
  • Glossier's Olivia Rodrigo Collaboration is a Lavender Dream

General Market Currents

A few years ago, Perfect Corp, the world’s leading AR company partnered with the Chinese ecommerce giant, Jack Ma’s Alibaba group, and integrated its YouCam Makeup AR virtual try-on technology into Taobao and Tmall Alibaba online shopping experiences. This brought new virtual try-outs to consumers in China. Just six months into using Perfect Corp’s AR technology, Alibaba revealed they had increased their conversion rate by 4x. Since then, new technology in the beauty industry is coming on leaps and bounds, immersing AI, AR, and VR into household brands like MAC, NARS, and L’Oreal.

From virtually trying on make-up looks to evidence-based skin analysis, AR and other disruptive technologies are changing the way consumers discover, experience and connect with health and beauty brands.”

-Kimberley Yap, Ministry XR’s VP of Experience Design

New Waves in the Beauty Industry

Beauty accelerators are quietly building the next wave of ‘it’ brands

The next billion-dollar beauty brand likely won’t come from industry insiders, but instead from industry outsiders. Several beauty accelerators designed to support fledgling brands have emerged in the last five years. There’s Sephora Accelerate, Credo for Change, Ulta Beauty’s MUSE Accelerator, Tower28’s Clean Beauty Summer School, True Beauty Ventures x Bridge Mentorship, and Glow Recipe Mentorship, to name a few.

Brands are winning on Roblox with avatar fashion, gaming

Forty-five-year-old lifestyle brand Natori came out with its first digital fashion collection on Roblox last week. It includes high-end fashion items, hairstyles and accessories in the brand’s signature prints. They’re being sold for $1-$1.50 through Roblox creator studio House of Blueberry’s digital boutique, launched in August. The digital boutique is a new House of Blueberry feature allowing brands to launch “pop-up” Roblox collections in the store. As such, it offers brands a chance to dip a toe into the platform to trial the impact of an avatar fashion creation.

Louis Vuitton and Tiffany & Co. are embracing Netflix’s new ad-supported tier

After a few quarters of uneven subscriber growth, Netflix finally got around to its plan of launching a lower-priced, ad-supported membership tier on November 3. The $6.99 tier launched on Thursday in the U.S. and eight other countries, with hundreds of brands on-board. Among the brands that are advertising on Netflix on day one are, somewhat surprisingly, a number of luxury brands. LVMH brands including Louis Vuitton, Tiffany & Co. and Bulgari were all spotted on Netflix on the first day. They ran short ads on shows like “Gilmore Girls.” The new ads are typically around a minute long, with an average of three ads per hour-long episode.

Beauty Insider

KraveBeauty's recent 'Waste Me Not' campaign exposes the hidden waste in the beauty industry to consumers.

Waste in the beauty industry goes beyond the box or jar a product is in. In fact, much of the waste comes from the testing process to make a new formula, pilot batches, returns, or excess product that can expire while sitting in warehouses or on store shelves.  And because these are the things consumers don’t have awareness of, KraveBeauty decided to use their recent 'manufacturing mistake' to peel back the curtain of the waste in the industry to customers.

Arey Raises $4.15M Seed Round to Address Graying Hair

Arey, a direct-to-consumer hair care brand targeting the growth of gray hair, blew past its recent $2 million fundraising target, generating a $4.15 million seed round led by the Female Founders Fund and Greycroft. Arey addresses gray hair with a supplement and hair serum, as well as a shampoo and conditioner that helps prevent an increase in graying hair. In total, the system can reportedly preserve and perhaps restore hair pigment.

What Consumers Want from Beauty in 2023

The Benchmarking Company, through quantitative primary research studies spanning March to October 2022, asked thousands of U.S. female-identifying beauty buyers to share their views on new products they tried and loved in 2022, and what they’re looking most forward to in 2023. This article explores these consumer attitudes and how they might correspond with industry trend expectations as a whole

Brand Collab Highlight

Glossier's Olivia Rodrigo Collaboration is a Lavender Dream

Glossier has a certain hypebeast quality to it—the brand has a long-standing (no pun intended) history of people waiting in line for what can feel like hours, only to enter its millennial pink stores in hopes of adding to their collection of Glossier’s cult-favorite beauty products and merch. If you’re in the camp that wouldn’t miss a Glossier launch day for the world, you’ll be pleased to know that Glossier is launching the Olivia Rodrigo Collection, in collaboration with Glossier’s first celebrity ambassador, Olivia Rodrigo.