Glossy | 4 February 2021
K-beauty brand Peach & Lily is taking a new approach to its educational marketing, as it attempts to inverse the typical product launch strategy. Instead of announcing a new product and spending the following weeks explaining to customers why they need or should want it, Peach & Lily is doing the opposite. From Jan. 25 to Feb. 18, the brand is educating customers and followers on social media about vitamin C as an ingredient and slightly teasing that it will launch a new product soon. Peach & Lily is tactically refraining from mentioning the vitamin C product itself and is withholding information like whether it’s a moisturizer or serum, and what percentage of vitamin C it features. Peach & Lily does not have any other vitamin C products, and the intent is to keep customers and followers focused on understanding the ingredient and its use cases.
HAPPI | 4 February 2021
Shifting consumer priorities toward self-care and little luxuries, and broader lifestyle changes due to the pandemic moved the needle in unprecedented ways. As a result, the U.S. prestige beauty industry generated $16.1 billion in 2020, a 19% sales decline compared to the year prior, according to The NPD Group. By category, makeup sales were down (-34%) for the year followed by skincare (-11%) and fragrance (-8%), while hair grew 7%.
In skincare, the areas of growth were not enough to compensate for the declines across the largest areas of the market: face cream, face serum, and eye treatment. Most of skincare’s growth stemmed from body products including body creams/lotions, exfoliators, cleansers, serums, and devices. With clinics closed and elective surgeries placed on hold, consumers turned to at-home microdermabrasion and body sculpting-type products to achieve results.
Jing Daily | 4 February 2021
Female investors such as Yu are transforming China’s fashion landscape. Many are funneling capital into new dynamic companies, from lingerie to beauty, while other businesswomen are being tapped by VC firms (like former editor-in-chief of Vogue China, Angelica Cheung at Sequoia Capital). Since 2017, Yu has made prominent fashion investments both in global names such as Mary Katrantzou through Yu Capital, as well as in homegrown talent through various initiatives like the Yu Prize (launched in 2020). One probable next step for such entrepreneurs in China is the creation of their own brand, and here Yu is firmly ahead of the curve. Moreover the global beauty industry generates $500 billion in sales a year and has been exceptionally buoyant in China where in-store and omnichannel bounced back quickly.
BOF | 4 February 2021
Beauty industry leaders contend that in just a few short years Nykaa has leapt ahead of international competitors like Sephora which entered India in 2015 through a partnership with Arvind Fashions Ltd. On the back of its strong e-commerce play Nykaa has pursued an aggressive offline expansion plan resulting in 76 brick-and-mortar stores across India carrying an inventory informed by hyperlocal consumption patterns.Now according to Bloomberg Nykaa E-Retail Pvt is readying for an initial public offering (IPO) as early as this year which could see the firm reach a valuation of $3 billion or more. Despite the severe impact of the pandemic on the Indian economy Nykaa says it will surpass the 100-store mark by the end of this year’s expansion. Sephora by comparison has 24 stores across India and a dedicated e-commerce business.