The Race for Millennial Dollars Has Sparked a Beauty Gold Rush

The Millennial makeup gold rush is on, as brands jump on the #selfcare and #selfie bandwagon, creating beauty lines to target young consumers…

It’s good to be an indie beauty brand in the age of social media. Last year, cult favorites like Glossier and Colourpop saw their category’s sales surge 43%, according to the NPD Group, propelled by unboxing videos, influencer collaborations, and Instagrammable products. Upstart like Kylie Cosmetics raked in $420 million in 18 months, mostly via organic marketing courtesy of founder Kylie Jenner and her 99 million followers. The makeup industry as a whole has seen a surge in recent years as chasing the latest makeup trends and shopping for products supported by fan-favorite influencers have gained traction with young consumers. As we’ve pointed out before, Millennials are actually buying more makeup than Boomers. The Financial Post reports that Ulta Beauty has seen sales surge from $3.9 billion in 2016 to $5.9 billion in 2017, while Sephora revenues “have doubled since 2011.” Thanks to the clear opportunity for profit, it seems every day brings a new startup beauty brand to know and learn from.

Of course, major brands are contending with more competition than ever, and fighting to stay at the top of Gen Z & Millennials’ favorite beauty brands. Following in Fenty Beauty’s groundbreaking footsteps, Estee Lauder and many other big brands have launched more inclusive shades. Meanwhile, Fashionista reports that from St. Ives to Covergirl, drugstore staples have taken a new tack to reach young shoppers by switching up slogans, introducing “[M]illennial-friendly packaging,” and hosting experiential pop-ups. They’re “future-proofing” themselves by leveraging The Influencer Effect (and moving towards micro-influencers) and cutting corporate red tape to…

 
 

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Quote of the Day:  Millennials have grown up in a world where consuming wine outdoors—or any location outside of the traditional table—is more acceptable than generations past.”—Kate McManus, VP of Marketing, Delicato Family Wines (Wine Spectator)

Young consumers are “killing the shopping spree.” Whether they’re signing up for the growing number of clothing subscription services (Rent the Runway, Le Tote, Urban Outfitters, etc.), shopping second-hand, or just culling their closets—young shoppers are quitting fast fashion in droves. Some are inspired by Marie Kondo’s joy-sparking brand of minimalism, while others want to help the environment—and still others are just seeking a wide range of things to wear at a lower price. (Vice)

Airbnb is launching “adventures” for experience-seeking young travelers. The site that started with accommodations and moved into one-off “experiences” (like dinner parties) now offers multi-day excursions, complete with guides, gear, meals, and accommodations. The platform already features over 200 trips in 40 countries, including a tiger-tracking expedition in Kenya and a trek through the canyons of Oman. (Fast Company)

Tyson Foods is taking on the fake meat market with plant-based nuggets. The pea protein nuggets are the first in a line of “Raised & Rooted” products from Tyson Foods. The brand's CEO explains they’re catering to the “growing number of people open to flexible diets that include both meat and plant-based protein”—aka young flexitarians, not full-time vegans. But can a company known for its meat sell the idea that “this [trend] is about ‘and’—not ‘or’”? (The Verge)

Snapchatters can shop Levi’s new Pride Month jacket via selfie filter. The Shoppable feature is first enabled by scanning a QR code found at select stores or by getting a special Snapcode from a friend. Then, users can try on the special-edition trucker jacket via augmented reality, customizing it with one of two washes and a selection of six pins and patches. Once they complete the look, users can purchase the Pride Month Jacket—without ever leaving the app. (SJ)

Amazon’s new Echo Dot Kids Edition revamps the original. The new smart speakertakes many cues from the adult version’s second generation (it’s louder and rounder) but adds special features just for kids that go beyond a rainbow-striped color scheme. The device will come with a year of FreeTime Unlimited, a subscription service that includes popular Alexa skills like Pinkfong’s Baby Shark Adventures, as well as an enhanced parental control suite to address growing privacy concerns. (VarietyCNET)

Quote of the Day: “Young people still have an incredible interest in the Olympic Games…But the way they are consuming the Olympic Games—the type of content they are watching and the ways and the platforms on which they are watching—are fundamentally changing.”—Kit McConnell, Sports Director, International Olympic Committee (Bloomberg)

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