Renaissance. Arguably one of the most defining times in the history of art and innovation, when after decades of God-fearing and fixed mindset, came the time of enlightenment in all of its glory. While the two can’t be compared eye to eye, there is something about the current shifts in the beauty industry that resembles the significance of change. 

The changing look of beauty 

While on the surface the industry has always had a relatively simple mission – to make people look good, it’s also precisely what made it difficult for brands to stay relevant. Beauty standards have danced across history’s stage, adapting new forms and performing ever-evolving mosaics of ideals. In ancient Egypt, both men and women adorned themselves with elaborate cosmetics, emphasising a youthful and polished look. In the Renaissance, it was pale skin, rosy cheeks, and a delicate complexion that were highly prized. As the world around us changes, so do the beauty ideals and consequently consumer needs. From wanting to achieve different looks to dealing with diverse skin conditions or indulging in moments of self-care, the peculiarity and subjectivity of beauty leads to diverse consumer needs forcing businesses into proactively researching consumer attitudes, testing new ingredients and expanding their consumer reach. 

In an era marked by a forceful push for diversity and inclusion, and the younger generation’s boldness to challenge traditional standards,  the world’s idea of beauty becomes more all-encompassing than ever before. The beauty industry, which includes makeup, perfumes, skincare, and haircare, has been keenly observing and embracing a wave of diverse innovations. From the introduction of advanced skincare technologies to the rise of inclusive and sustainable beauty practices, beauty brands have adopted a more holistic approach and expanded into new verticals. They have recognised the need to cater to different skin types, tones, and beauty ideals, offering a wide range of products that celebrate individuality and promote self-expression.

A renowned example of this is Fenty Beauty, which revolutionised the makeup space by creating over 40 shades of foundations, placing representation and inclusivity at the forefront of their agenda. The brand’s inclusive ethos extended to other products, such as a diverse range of highlighters and lip colours and it was a commercial triumph. The brand’s inclusive approach resonated strongly with consumers, resulting in exceptional sales and revenue figures. In its first month of release, Fenty Beauty reportedly earned $72 million in sales, surpassing established beauty brands and making a significant mark in the industry.

While innovation in the beauty industry isn’t new, there are new ways in which it is innovating. Just as the Renaissance opened peoples’ eyes to what it means to be alive, some brands are now questioning what is beauty and what are its building blocks. 

How is the Beauty Industry Changing? 

If there is anything that the recent cultural shifts forced brands to acknowledge, is that beauty goes beyond surface-level care ultimately making brands delve into broader aspects of self-care such as wellness? This isn’t coming as a suppose given that 50% of consumers consider wellness as a top priority in their day-to-day lives. This evolution is evident through various innovations across brands of all sizes. For instance, a cosmetics company Rituals aspires to integrate wellness into various aspects of daily life, including home and beauty products. The Dutch company provides a diversity of products such as sleep-focused lotions and diffusers, along with sleep masterclasses. Taking inspiration from Asian cultures, Rituals has also moved beyond its product portfolio to encompass items like candles and bath salts. Unsurprisingly, when spas closed down over the pandemic and homes took over, Rituals had significant financial success with revenue surpassing $1 billion by 2021. Merging beauty, wellness and home was an authentic move for this brand given its product range, and it paid off. 

Rituals paved the way for beauty brands to consider expanding their focus into homes, a safe place where they both take care of themselves and unwind from the outside noises. Therefore home seems to be one of the innovation sweet spots between wellness and beauty, with many D2C startups launching every once in a while. One of the most interesting new entrants is Jolie, an elegant showerhead brand.

As their website claims, unfiltered water could cause hair discolouration and damage, dry skin, acne and even dandruff — and worsen pre-existing issues. Jolie comes in to save people’s skin and reintroduce water as a new skin/hair care step. Such a strong and scientifically proven mission statement led them to end their first financial year with $4m in revenue. While it is a great result in itself, what makes it even better is the online following of the brand and the hype Jolie created for such an ordinary product. 

As the wellness industry is worth $1.5 trillion globally and is projected to grow up to 10% by 2027, it’s fair to assume we will be seeing more beauty brands expanding into this space. While home is the most common and lucrative wellness sub-territory for beauty brands to tap into, there are other opportunities such as spa treatments, sleep and sexual wellness that we should be seeing innovations in. 

How can beauty brands move into wellness? 

In conclusion, the beauty industry is experiencing an undeniable renaissance, as consumers shift their focus from a purely aesthetic and care-based approach to beauty, to one that encompasses holistic and internal wellness. This shift presents a golden opportunity for beauty brands to future-proof themselves and expand their portfolios. However, to successfully enter the wellness space, brands must leverage their expertise in a unique way. It is crucial for brands to innovate in a credible manner that aligns with their existing products, taking inspiration from successful examples like Ritual.

Moreover, new direct-to-consumer (D2C) brands can draw valuable lessons from Jolie, whose ability to craft compelling stories for consumers has propelled them to success. By embracing the power of wellness and leveraging their strengths, beauty brands can not only thrive in the present but also shape the future of the industry.

For beauty brands, the question of survival isn’t whether they should innovate or not, but rather- in which direction. 

How can Manifesto help? 

Manifesto are experts in identifying and implementing new business models that will drive consumer lifetime value through proposition design, experience optimisation and driving value from data. We have worked with a number of leading businesses across the CPG sector and have a proven track record of accelerating ongoing enterprise-wide change. Contact us to find out more.