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KATHRYN SLOANE Executive Managing Director Commercial, APAC/MEA, SGK
HOW COVID-19 SHAPED LUXURY BEAUTY MARKETING IN APAC Traditionally, luxury beauty brands have strived to strike a balance between providing impeccable service and consumer experience, while retaining brand history and integrity in a swiftly changing market. One of the biggest changes to the luxury beauty competitive landscape is the rise of “masstige” brands, which market products that are considered premium yet attainable. Pre-Covid their popularity was rising, particularly for Millennials who sought high-end beauty products still within their budgets, ensuring they were getting the most value for money. During the pandemic this trend has further gained traction as incomes tightened. The rise of masstige beauty will impact the luxury beauty industry’s recovery in a post-pandemic recession as masstige new product development (NPD) will make premium indulgences more affordable and accessible. These brands are readily accessible from beauty counters like Sephora, come with adopted formulas, and are often built with Instagrammable packaging and/or celebrity endorsements, which are all redefining beauty under a budget. Despite the pandemic, Fenty Beauty, a celebrity-endorsed brand known for its all-skin color makeup line, has launched its personal care range through Sephora Asia. Another brand trending in popularity is Drunk Elephant, which positions itself between masstige and luxury with its high-quality skincare products that are priced close highend beauty product without being out of reach. These emerging NPDs and masstige brands are putting premium beauty brands on the defense for differentiating themselves in a newly competitive market.
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GLOBAL RETAIL BRANDS / SUPPLIER GUIDE 2021
One of the biggest changes to the luxury beauty competitive landscape is the rise of “masstige” brands, which market products that are considered premium yet attainable. The beauty industry today has transformed at a rapid speed facing a competitive environment, and the pandemic has only expedited the competition as new, disruptive products launch. The challenge to remain premium continues as luxury beauty brands embrace digital channels while also maintaining exclusivity and desirability—and doing so without compromising their brand values. We look at three strategies that luxury beauty brands have introduced during the pandemic that will continue to shape their long-term marketing approach in a post-Covid world.
DIGITAL-FIRST Luxury beauty brands have been seasoned in physical retailing where their service has been the advantage to justifying their premium price point. Covid-19 has changed retailing, creating a digital-first world, and its impact on e-commerce is bringing challenges to online selling and service no one could have anticipated. Now brands are using multichannel as a means to guide and influence the choice for the consumer. Premium beauty players have expanded their digital world presence, engaging consumers through various activities, emphasizing their premium status with the luxurious shopping experience. Lancôme debuted its virtual retail store in Singapore during the lockdown period where consumers can access the flagship store through a link. Live chatbots and hotspots were installed within the virtual retail to guide the consumers across its five zones designed to encourage customers to explore their #LiveYourStrength campaign.
