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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The Newsfeed

Quote of the Day: “I think we’re already seeing alcohol lose its health halo. Next, the assumption that alcohol is essential to a good, sophisticated life will fade.”—Joy Manning, Deputy Editor, Edible Communities (Medium)

“The doofus dad” TV stereotype is being remade for role-resisting Millennial parents. Inept at care-taking and almost everything else, the tired stereotype is saying its last “D’Oh!” as The Simpson’s Homer Simpson and Peppa Pig’s Daddy Pig get replaced with a new wave of capable fathers like Bluey’s Bandit. The switch could have a real impact on the way kids understand family life, with one research fellow explaining, “The media reflects reality and also constructs reality.” (SMH)

Apple's new subscription gaming service Arcade will cannibalize its own App Store downloads—and that’s a good thing. Downloads in the App Store are on the decline, despite mobile gaming maintaining popularity and raking in revenue. If Apple can turn Arcade into young gamers’ go-to for mobile play, they’ll be poised for success that could outstrip even Apple TV and Apple Music. (The Motley Fool)

Gen Z music artists are “post-genre.” Mixing several influences into one song has become a way for rising artists to set themselves apart, and thanks to self-upload services like SoundCloud, they don’t need music industry exec’s approval. Meanwhile, the Genreless Generation can curate blended playlists via Spotify to fit moods and occasions rather than “rock” or “pop” and are streaming has also globalized their content consumption, so U.S. genres are no longer a limit. (Vice)

Carl’s Jr. has a CBD-infused burger that costs exactly $4.20. The chain restaurant is giving fast food a Cannabis Infusion, but only at one Denver, Colorado location, and only for one day. The Rocky Mountain High Cheese Burger Delight packs 5 mg of the chemical that won’t get you high. CBD is the trendy ingredient du jour, with 57% of 18-36-year-olds telling us they’re interested in trying it, and the chemical has made its way into everything from lotion to La Croix-like beverages. (LAT)

Axe is challenging masculinity with “bathsculinity.” The brand has been blurring gender lines for the Genreless Generation for years now, and their latest series of YouTube spots is showing that men can take baths, too. They’ve enlisted comedian Lil Rel Howery, who takes bubble baths surrounded by candles in the humorous videos. And they couldn’t be more on-trend: bath time is seeing a surge as a salve for Millennial anxiety. (Marketing Dive)

Quote of the Day: “I think for a cohesive strategy and for really helping to build awareness as well as grow the market size for new things, there's definitely digital and social media. But also, there has to be this in-real-life element.”—Alicia Yoon, Founder, Peach & Lily (YPulse)

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