Pathways: the distribution web

Pathways: the distribution web

Nowadays, it is important for brands to have innovative and revolutionary products. However, these products will never become successful without an effective distribution plan. It is essential for companies to know how to distribute their products. What is a distribution channel ? Quite simply, it is the path  that a good takes from the supplier to a consumer. Companies must know how to distribute their products correctly, for example, L’Oréal. L’Oréal owns a number of brands which are organised by Division. Each of these brands develop a specific vision of beauty by consumption universe and distribution channel. L’Oréal has different distribution plans for each of the brands. For example, La Roche Posay cannot be found in just any store as it comprises of medical products and so therefore is distributed to pharmacies.

There are four types of distribution channels for the marketing of cosmetic products to the general public ;

1. Large and medium-sized retailers

2. Selective distribution (ie. perfume shops or specialty stores)

3. Mail order and Internet sales

4. Pharmacies and parapharmacies.

In the past, pharmacies and parapharmacies have been the most successful distribution channel for cosmetic products, and cosmetic companies have largely focused their attention on these medical care providers. Increasing numbers of physicians have been prescribing skin care treatments and dispensing products to their patients, creating a favorable environment for beauty marketers within pharmacies. In order to keep distribution lines open within the medical sector, cosmetic companies have been very clued-in to the latest trends within pharmaceuticals. Tailoring their products to match with physicians’ recommendations has meant that their products will be prescribed and distributed through the medical sector. When people come to pharmacy, they seek medical advice and a guarantee of the product’s effectiveness relying on different brand names. Famous brands such as La Roche-Posay, Vichy, Avène or Bioderma are good examples. In the United states, ingredients such as Retinols, hyaluronic acid, and vitamins are very popular. Due to this trend, several large and medium-sized marketers have been introducing cosmetic products which are formulated with these ingredients. Such products include ;  SkinCeuticals H.A. Intensifier by L’Oréal, Dermalogica Overnight Retinol Repair by Unilever, and PCA Skin’s Hyaluronic Acid Boosting Serum.

Due to heightened environmental concern, cosmetic companies have also adapted their products to be more eco-friendly. As more and more consumers have come to learn about the detrimental effects of airborne pollution, both on their skin and to the ozone layer, they have expressed greater interest in anti-pollution products and their sales have soared. Due to this new trend in anti-pollution marketers have introduced products, such as Pollution Shield Broad Spectrum SPF 46 Sunscreen by Santé and Alto Defense Serum by SkinBetter Science. We can see how cosmetic companies cleverly adapt their products to fit in with new pharmaceutical trends in order to ensure that the medical sector remains their largest distribution channel. 

Although, the medical sector has been a stable and successful mode of distribution for cosmetic companies throughout the years, technological and digital innovations have largely altered the distribution process and therefore, must be taken into consideration. With the rise of 21st century individualism, consumers are becoming more focused on personalization. Technology has provided the perfect platform to enable consumers to do so. Cosmetic companies have realized that the 21st century consumer must be at the head of the production process and have invested vast sums in technological innovations which will enable this to happen. The 21st century consumer is autonomous, individual and in control. Cosmetics companies must give them the freedom to design, to innovate and take charge of their purchasing experience. The control, therefore, is shifting from the company to the consumer and the distribution method must reflect this change. Naturally, the internet has become a major distribution channel due to these changes however, new technology is not just limited to the internet but can be seen within stores too. This employment of new technology to complement the consumers’ new need for personalization is probably best seen in the case of Sephora. Sephora is the French leader in the perfume industry who has included a new feature called ‘Beauty Hub’ in their stores where customers can use new digital technology to try products and have a new connected terminal system that makes it easier for customers to order.

These technological innovations have even paved the way for new distribution channels to emerge, such as medical spas. As the professional skin care space continues to record strong growth, outlets dispensing skin care and offering professional treatments continue to evolve. SkinCeuticals is currently opening Advanced Clinical Spas, a new concept that the marketer began rolling out in 2016. Alchemy 43 and SkinLaundry, both new emerging players in the market, have also launched similar projects which fall within the medical spa realm. Since 2017 Skin Laundry has specialized in laser and light therapy with 13 locations in the United States. As of 2017, Alchemy 43, had just one location open but had plans to expand. The company concentrates on cosmetic micro treatments. Rising interest from consumers for custom-tailored beauty and fun store formats suggests that more specialty professional doors will surface in the coming years.

 


References :

Sai Swaroop (March 22, 2018) : “Top five trends to watch in the U.S Professional skin care market”, retrieved from 

https://www.klinegroup.com/blogs/index.php/2018/03/22/top-five-trends-to-watch-in-the-u-s-professional-skin-care-market/

Etudes et Analyses : “La distribution des produits cosmétiques”, retrieved from 

https://www.etudes-et-analyses.com/marketing/marketing-de-la-distribution/etude-de-marche/distribution-produits-cosmetiques-325503.html

Cecile Desclos (Mai, 2018) : “Les stratégies digitales des marques et des enseignes de beauté”, retrieved from 

Click to access LEE_beauté_et_digital_HD2.pdf

 

 

When celebrities have their own organic skincare lines

When celebrities have their own organic skincare lines

In one of our previous articles we have mentioned the trend of organic skincare and pose a question of how is the percentage of truth behind the green label that skincare brands are using more and more widely. Our anxiety towards that phenomenon is grounded on the fact that many brands are causing confusion in customer’s mind by abusing the image of natural-origin to promote their products, no matter if they contain any natural or organic ingredient or not. Many celebrities, among others, have the same doubtful point of view and have expressed concerns about the skincare cosmetics quality in the market.

Miranda Kerr, famous Australian model and former Victoria’s Secret angel, said to British Vogue: “When I was modeling full time (at around 18), I became aware of the chemicals contained in most skincare products and I searched for years to find a range that was not only certified organic but also delivered results. I was unable to find anything on the market that delivered what I was looking for so I decided to create my own range.” And do you know that Miranda decided to create her own skincare line? Kora Organics was introduced as a result of 4 years cooperating between the model and organic pharmacists, which is asserted to meet the high required standards of Miranda herself.

mirandakerrSource: Kora Organics’ official Instagram

Another example of organic skincare brand owned by a star is Juicy Beauty, the clean skincare line developed by Gwyneth Paltrow. From years ago, the actress realized the importance of natural ingredients to skin beauty and wellness. In order to meet this vision, she built up a line of organically-formulated skincare products which contain non-toxic elements and up to 99% organic.

However, are those celebrity-owned organic skincare ranges more reliable? The answer is up to you. If customers believe in reputation, values as well as standards which are established and communicated by the celebrities, they have enough reasons to try. And just for your information, the Daily hand cream of Kora Organics which is made from aloe, macadamia-seed oil, and olive oil, won a Best of Beauty award of Allure magazine in 2014.

In another post on our blog, we were talking about the powerful impact that stars create when they indorse a skincare brand. The effect seems to be more obvious when celebrities promote their own products, simply because when famous people start a business and passionately talk about it, audiences are more likely to be persuaded. As stated by Daniel Kruger, an evolutionary psychologist from the University of Michigan, human being are social creatures which tend to behave like the crowd and navigate the social situation according to high-status individuals behaviors. That might be a reason for the easy success when celebrities tell their own story and use their own prestige to promote skincare lines that they claim to develop by their passion.

 


Reference:

Chloe Metzger (December 2, 2015): “10 Celebrities With Awesome Beauty Lines” retrieved from https://www.allure.com/gallery/best-celebrity-beauty-lines

Alana (November 14, 2017): “Curious about Celebrity Beauty Brands? I’m giving you the inside Scoop!”, retrieved from https://www.skincarebyalana.com/blog/curious-celebrity-beauty-brands-im-giving-inside-scoop/

 

 

When the digital meets the skin care market…

When the digital meets the skin care market…

MobileDigitalSolutions   Source: Ionetek

For several years now, phones and digital devices have invaded our daily activities. Some may stay skeptical about their increasing presence in our lives but let’s face it, as customers these devices have changed the way we shop. No industry makes the exception, not even the skin care market which, for several years now, has been trying to introduce the digital in its offers. Indeed, many brands have understood that excelling in the digital world was a way to be differentiated from the others and thus have put it at the center of their strategy. L’Oréal, the skin care market leader, is a good example as it covets to also become the leader of digital on the skin care market. First, through e-commerce. Undeniably, it has been a way for shoppers to get access to foreign brands and more exclusive products. It has been observable among Europeans and their rising interest towards Asian skin care brands, especially Korean ones like the Glow Recipe. Don’t you have ever seen these colorful packaging with cartoon characters on Sephora’s shelves? These products are mainly known for their health benefits which explain their success in Occidental countries. Customers begin to get curious about these countries’ routines and don’t hesitate to try them. In few days, they get delivered on their doorstep. Way cheaper than a return plane ticket to go fetch them directly, right?

Secondly, the way brands promote themselves and get in contact with customers. Indeed, many of them pass through social media, especially Instagram now, to promote their products. They use influencers, youtubers and celebrities to do indirect promotion. Just by mentioning it as their own products, influencers have a real impact on their followers. If you are French, you probably have heard of Caroline Receveur or EnjoyPhoenix, both known for their advices on all kind of beauty products. It goes beyond a simple endorsement. Indeed, consumers have the feeling they are in real contact with these people, connecting with them more easily.  Just one question remains: are those feedbacks real? I think we tend to be more suspicious about it thinking that brands pay them to be promoted. However, new apps allowing customers to scan their skin care products and grade them play now a major role in choosing a product and in building trust towards them. Also, a major step forward in terms of digital on the skin care market.

However, this is not what I would like to truly emphasize today. The real shift on this market remains in the brand-new digital customer experience, also known as CX. The challenge? Give customers the best experience possible when using their products. But how so? Personalized and accompanied service from the decision making to the use of a cream, moisturizer or oil. Indeed, brands have been or are now developing services with facial recognition and skin diagnosis to recommend the best product to buy. It allows customers who don’t want to go directly to stores to have the needed guidance in their purchase. They get a real shop experience without having to move from their sofa. Vichy for example, one of L’Oréal sub-brand, has developed what they have defined as an “ideal skin diagnosis”. The process is quite simple. Customers upload a face picture, answer all kind of questions about their skin traits and play with all kinds of filters about themselves. Few seconds later, they get information about their type of skin and  guidance on which product to use from this brand. It also gives lifestyle and nutritional advices, going beyond selling just a product. The brand basically says to customers : “It is not the product in itself which is our concern, your well-being is” ! Therefore, it is a real step forward. If few years ago you could find general advices on their official website or online videos explaining products’ proprieties to accompany customers, they now tackle the customer’s experience in a completely different way. They want them to feel unique, think that their skin is like no other and that they have a perfect match: the perfect solution to their skin care problems.

                                                                                                                       Vichy                 Source: Guided Selling.org

These types of diagnosis are very developed especially by “dermatologically tested” and pharmacy products as it corresponds to their identity and “medical image”. They offer the medical solution and advice along with the product. No need to bother going to shops anymore. It is quick, simple and thorough.

Therefore, Avène and La Roche-Posay, also main “Dermatologically tested” brands, famous internationally and sold exclusively in pharmacy, offer the same kind of diagnosis.

Source: La Roche Posay & Avène Official Website

Even though the diagnosis is presented in a different way, it has the same goal: to offer customers a unique and complete experience with the brand.

It is however not exclusive to dermatologically tested or expensive brands. The Body Shop for example has also implemented this type of service. They don’t use the photograph system but through a deep questionnaire they also give a quite detailed advice. Customers just need to take the time to answer it.

Source: Guided Selling.org

And that’s not it. Some brands are even going further. It is the case of Shiseido, very popular among Asian brands and on the European market. Indeed, with its innovative yet still on-going tested system “Optune”, the Japanese manufacturer has taken a step further by gathering skin analysis data and real time environmental data to provide a personalized service on which product to use depending on the weather. This new concept brings together technologies and modern scientific research on skincare, offering again a new dimension of customer’s experience. From just a picture and the knowledge on the real-time weather, “Optune” is able to give customers the appropriate and exact skin care “routine” with the brand’s serums and moisturizers. Thus, customers get a unique advice and Shiseido gets to promote its products as the perfect match for skin problems. It is undeniably a win-win. The skin care market is, as you can see, taking a big step into the digital world. It reshapes completely the customer ‘experiences into a whole journey with the brands and to go beyond buying a simple product. Also, a good way to attract brand loyalty, don’t you think?

 


References :

“Shiseido develops digital skincare system” (12 January, 2018), Cosmetic Business (Online), retrieved from http://www.cosmetic-business.com/de/News/shiseido-develops-digital-skincare-system/755684

Technology Blog (March 22, 2018) “How Technology Is Transforming the Beauty and Personal Care Industry”, TRANTOR (Online), retrieved from http://trantorinc.com/blog/how-technology-is-transforming-the-beauty-and-personal-care-industry/

Blog (May 18, 2018) “How Beauty Brands Can Use Customer Experience as a Differentiator”, Kustomer (Online), retrieved from https://www.kustomer.com/blog/beauty-brands-cx/

Abby Driver (January 17, 2017) “Digital Technologies in the Beauty Sector”, Guided Selling (Online), retrieved from https://www.guided-selling.org/digital-technologies-beauty-sector/

Sinead Norenius-Raniere (02 March, 2017) “Forecasting the digital future of cosmetics and personal care retail”, Cosmetics Design.com (Online), retrieved from https://www.cosmeticsdesign.com/Article/2017/03/02/Forecasting-the-digital-future-of-cosmetics-and-personal-care-retail

Guest author (April 06, 2018) “Modern Beauty is Personal, Digital, and Direct”, Guided Selling (Online), retrieved from https://www.martechadvisor.com/articles/customer-experience-2/modern-beauty-is-personal-digital-and-direct/

Erin Gilliam (16 January, 2018) “Top Digital Customer Experience (CX) Trends for 2018”, Mopinion (Online), retrieved from https://mopinion.com/top-digital-customer-experience-cx-trends-for-2018/

“ Une exemplaire stratégie digitale pour l’Oréal car elle le vaut bien, et pour votre entreprise ?” (6 janvier 2018), SAWI (Online), retrieved from https://sawissd.blog/2018/01/06/une-exemplaire-strategie-digitale-pour-loreal-car-elle-le-vaut-bien-et-pour-votre-entreprise/

Marian Liu (April 12, 2018) “Beyond beauty: Korean makeup provides ‘cosmeceuticals’” (6 janvier 2018), CNN (Online), retrieved from https://edition.cnn.com/2018/04/11/health/korean-makeup-beauty-health-benefits/index.html

http://www.atkearney.fr/documents/877508/879237/Digital+Beauty+in+Europe-Attract+Consumers+and+Win+Online.pdf/b91ef808-068b-43e5-ac11-7dd6f55a4fa6

 

Star endorsers with beauty and skincare brands

Star endorsers with beauty and skincare brands

How could be the endorsement that a celebrity can do in order to support a skincare brand?

The simplest form is announcing they are using the product. By showing to the public they are a part of the brand’s clientele, celebrities implicitly give the necessary message to their followers. It is not difficult to find in fashion magazines or through personal interview some passages where famous people are willing to share their beauty secrets and describe their skincare routine, which is a very easy way to reveal the products behind their perfect appearance in public. This is not one hundred percent of the truth, because more than anybody else, celebrities spend pretty penny into beauty services. They do great effort in order to have flawless face and body since their image is an extremely important asset. When Victoria Beckham is enthusiast raving about Lancer Caviar cream or Gal Gadot swears by La Mer’s cleansing oil to help her remove make-up every day, we all know that just one or two skincare products cannot build up the whole story. However, it cannot be denied that celebrities’ reference is a smart way to give orientation to the crowd and can really help brands raise sales volume in a significant way.Vic

When beauty and skincare brands think about a solemn action to foster the brand image, co-presence with a star is a considerable choice. This is more applicable with big names in the beauty market, because choosing endorsers for co-presence is a long process with a strict multiple-term contract and, in most of the cases, is mega-expensive. The first step of the long-term campaign is certainly seeking for one or more appropriate celebrities who satisfy all the criteria, and the most crucial item in the list should be the matching of image that both the brand and the stars are endeavoring to build up. For a successful collaboration, different elements need to be taken into account: Are the brand and the celebrities in a same class? Does she or he believe in the brand’s core values and furthermore inspire back to the brand? Is the star’s personal image suitable with the product lines? Is she or he a potential influencer and able to convey the messages to the crowd? So on and so on. Once the relationship is set up, the celebrity becomes the muse of the brand. If you have doubt about what has been mentioned, let see how Cle de Peau Beauté describes Amanda Seyfried in their official website or how Kate Winslet appears in the adverts that Lancome made to promote the renowned Advanced Genifique serum with the memorable quote “love your age”.

Cle de peau-Amanda

In most of the cases, brand ambassadors do an excellent job of a spokesman by showing to the public how happy and thankful they are with the brand. To prove this, just see the successful example of cooperation between Song Hye Kyo, top Korean actress who is well-known of possessing the most beautiful bare face of K-biz, and Laneige, the brand comes from the biggest Korean cosmetic conglomerate – Amore Pacific. During years working together, Song has been making audience truly believe that Laneige forms a irreplaceable part of her daily life when she always sticks her luminous appearance with Laneige products whenever she could, no matter in film footages, in interview for famous magazines or in her personal social account. The impact from the star boost Laneige’ awareness in a way which cannot be more impressive, therefore the revenue follows, especially after the actress gains relevant shiny achievements in her career path in recent years (with the extreme succeeding of “Descendants of the Sun” in 2016) and her dreamy wedding in late 2017. The co-presence is so fruitful that at the beginning of 2018, Amore Pacific decided to grant Song the important role of Sulwhasoo ambassador – the most high end brand of the company – after 10 years going with Laneige.

The benefits from star’s endorsement is christal clear, but beauty brands still have to evaluate carefully before starting a campaign with celebrities, especially when they look at the pricey cost. If brands want Karlie Kloss refer to their product in her Instagram, they need to pay around $40.000, and if it is Beyoncé – the most powerful artist at this time – the number is not lower than $1.000.000, just for one post. Brands need to count many strategic dimensions and strictly make marketing plan considering all the positive impacts as well as the risks, because besides career success, scandals of famous people also greatly matter. If brands are confident enough to convert expenses for star endorsers into sales volume and brand awareness that meet the expected marketing objectives, then they are having the most obvious opportunity to push themselves to a much higher level than they’ve ever done before.

 


References:

Harpers Bazaar magazine (November 28, 2018): Celebrity beauty secrets – https://www.harpersbazaar.com/uk/beauty/g26414/celebrity-favourite-beauty-products-secrets/?slide=9

Mediakix team (April 12, 2107): The Top 10 highest paid celebrities on Instagram – http://mediakix.com/2017/04/highest-paid-celebrities-endorsement-rates-on-instagram/#gs.wcyttfM

https://www.cledepeaubeaute.com/our-story/article/?id=allure-of-amanda

Vivienne Tay (January 05, 2018): LANEIGE reveals new face for brand as Song Hye Kyo moves to Sulwhasoo – https://www.marketing-interactive.com/laneige-reveals-new-face-as-song-hye-kyo-moves-to-sulwhasoo/