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Fashion brands launching beauty lines

According to a recent report from Allied Market Research, the global cosmetics industry is expected to reach $463.5 billion by 2027, witnessing a CAGR of 5.3% from 2021 to 2027. It is no surprise that with such a dynamic market, newcomers keep on appearing. Countless new beauty brands are created every year and while some are new to the consuming business, some others are creating beauty brands as an extension of another business. It is the case for many fashion brands and this movement of fashion expanding to beauty seems to have accelerated even more since the pandemic hit. So we have to wonder why do fashion brands launch beauty lines ?

A slice of the pie

Fashion has suffered a lot during the first year of Covid19 with people buying less clothes. The main reason was that, with remote working and lockdowns taking place all over the world, there was really no occasion to wear them. People being confined at home however meant that they were taking better care of themselves and spending more time on their wellbeing and beauty routines. So for fashion brands it is a logical business move to diversify profit source, and invest where consumers are putting their money. 

Brand awareness

Another reason is to expand their reach and to attract new customers with, for luxury brands, more affordable products. Not everyone can afford a Hermès bag, but purchasing a Hermès lipstick might be more accessible to some and you still get a similar customer service and brand experience (especially with the packaging). Customers buying beauty products from luxury fashion brands are introduced to the brand’s world and if they enjoy the experience they might at some point in the future consume fashion products of the brand.

One-stop shop

For fast-fashion brands, low price is a selling point. When launching a beauty line like Zara recently did with the ability to sell low-price but high quality beauty products is also attracting a lot of consumers – especially of a younger generation. These fashion brands aim to become one-stop shopping places where customers visit to create entire looks from clothing to makeup. Beauty products are also a great way to persuade a customer to buy something additional and create more upselling.  

Are you a fashion brand planning to launch a beauty line ? Contact us to get insights and strategies to make sure your brand will out wow consumers !

   Monia MERABET

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