Impact of budget-tightening in the beauty space, Carrier Rate Increases, and more.

While every industry felt the effects of unpredictability and uncertainty throughout the past three years, beauty has been uniquely impacted by changing norms and new consumer behaviors. When masks went on and beauty sales dropped, the industry was forced to pivot. When prices started to rise and supply started to fall, forcing consumers to re-prioritize their cosmetic needs, the industry was forced to pivot once again. Beauty brands — after all this shifting and re-shuffling — are wondering what’s next.

In this issue, we will cover:

• Sustainability and eco-consciousness in the beauty industry
• Impact of budget-tightening in the beauty space
• Gwyneth Paltrow on post-lockdown beauty and how Goop took the ‘dirtiness’ out of vibrator sales
• Carrier Updates: Rate Increates & Cargo Capacity on the West Coast Ports
• Lilah B. winds down business

General Market Currents

When it comes to the beauty category, desires like those of sustainability and eco-consciousness carry into the products themselves.  According to Global Cosmetic Industry Magazine, 20% of shoppers look for sustainable packaging, 25% for sustainable ingredients, and 37% for formulas that are clean or free from harmful chemicals.

Impact of budget-tightening in the beauty space

Brands are pitching resale as an affordable holiday alternative

• Inflation and increased prices have both put pressure on consumer spending throughout the year and both are likely to continue through the holiday season. But according to fashion resellers, the pressures that have led to higher prices at retail don’t impact resale. Because of that, customers may turn to resale this holiday season as an affordable alternative. Both resellers and brands that offer resale are hoping to capitalize on that shift by pushing their resale options ahead of the holiday shopping season.
  

Yoox takes a ‘secret’ approach to holiday discounting

• From October 18-30, Yoox is hosting a secret sale concept called “Secret Room” in New York. It first launched “Secret Room” in Italy in May. Strategically timed to run in advance of the holiday season, “Secret Room” will be located on 34th Street and will feature discounts on Yoox items of up to 90% off.

Beauty Insider:

Gwyneth Paltrow on post-lockdown beauty and how Goop took the ‘dirtiness’ out of vibrator sales

• Celebrating her 50th birthday last month with a bold gold body paint photoshoot, Gwyneth Paltrow is still pushing boundaries as a beauty and wellness maven. At the launch of her collab capsule collection with compression activewear brand CopperFit on Wednesday, Paltrow talked about what’s on her radar for beauty and wellness as she gets back into the swing of IRL Goop summits and looks to new categories for growth.
  

AmorePacific shifts cosmetic sales focus on US and Japan

• AmorePacific, South Korea’s leading cosmetics company, is accelerating its push into the US and Japan to make up for sluggish sales in China, as pandemic lockdowns disrupt business and domestic companies appeal to increasingly nationalistic shoppers. The shift in focus from the owner of brands Innisfree and Sulwhasoo comes as the company suffered a loss in the second quarter due to falling overseas revenues, with a double-digit drop in China over the first six months of 2022.

Rodan + Fields jump-starts brand expansion with the launch into hair care

• The 15-year-old company, founded by dermatologists Dr. Katie Rodan and Dr. Kathy Fields, has long operated in the skin-care space through its namesake brand. The new hair-care line, launched October 22, consists of eight items, including two regimens for hair volume and smoothing and two styling products, all focusing on the scalp.

Carrier Update:

General Rate Increases & Update on Cargo Capacity on the West Coast Ports

In this Carrier Update, we discuss the following topics:

• Carrier Rate Increases: In a very precedented move, UPS announced its matching overall General Rate Increase to FedEx’s 6.9% increase.
• Cargo Capacity and the West Coast Ports: Overstocked retailers continue to cancel overseas orders leading into the holidays, creating increased cargo capacity in the market. Cargo from Asia appears to be the most impacted.

Click here to watch the video update.

Brand Story of the Week

Lilah B. Winds Down Business

Indie beauty brand Lilah B. is going out of business. In an Instagram post, Founder Cheryl Yannoti Foland announced the brand would shut down at the end of the year. "My labor of love has run its course. I am so grateful for our Lilah B. community of friends," she wrote. "Your love and support over the past seven years is what continues to inspire me and what has kept us going even through challenging times. I thank you all.” Lilah B. was among the early entrants to the clean beauty channel. Retail partners included Sephora, Net-a-porter and BlueMercury.

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