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MARKETING OF COSMETICS AND PERFUMERY


FEATURES OF THE INDUSTRY

Effective marketing of cosmetic products and perfumery is an extremely challenging task due to several industry-specific features that significantly differentiate it from other consumer goods sectors. Here are a few defining characteristics to consider when developing marketing strategies for cosmetics and perfumery brands:

• Rapid pace of innovation. Cosmetic companies continually introduce new ingredients, formulas, and technologies promising improvements in physical appearance, a radiant look, and a range of emotions. The pace of innovation is constantly increasing, reducing the product lifecycle and intensifying competition among marketing complexes of cosmetic companies.

• Personalization of needs. The cosmetics and perfumery market is becoming increasingly demanding and is moving towards personalized services. Successful companies camouflage mass production with limited editions, unique ingredients, individualized service, the ability to combine products within individual cosmetic programs, and product selection tailored to unique consumer needs.

• Intense competition. Unlike many markets, competition among cosmetic brands is exceptionally complex and requires attention on multiple fronts simultaneously. Companies compete in functional and emotional components across all available communication channels, using expensive and creative elements of the marketing complex.

• Sensitivity to trends. The cosmetic market is highly sensitive to fashion and lifestyle changes, where the speed of responding to new trends and implementing changes in production and marketing is a key element of success. The influence of opinion leaders on social media, well-known personalities in sports, music, and culture, the development of subcultures—all rapidly change consumer preferences in the cosmetics industry, requiring manufacturers and sellers to constantly monitor changes and react accordingly.

• Natural ingredients. Naturalness and environmental friendliness have become not just a trend but a true standard in the world of cosmetics. Consumers are increasingly paying attention to product composition, seeking the most environmentally friendly and natural solutions for beauty and care. Cosmetic brands respond to this demand by incorporating predominantly organic and natural ingredients into their products, not only enhancing product effectiveness but also using them as competitive advantages.

• Global market impact. Modern realities dictate that, on one hand, cosmetic companies must consider differences in cultural preferences and beauty standards for effective adaptation of their products to various markets. On the other hand, there is widespread penetration of unique products from one country to another (such as cosmetics from South Korea, Japan, etc.), leading to corresponding changes in the competitive landscape in local markets.

Therefore, even the mentioned general industry characteristics suggest that the market for cosmetic products and perfumery is indeed complex for marketing promotion and achieving commercial success. Large international players, respected national companies, and new innovative enterprises allocate marketing budgets in accordance with the approved marketing strategy and marketing plan for promoting their brand.


SOME GENERAL STRATEGIES AND APPROACHESS

Every brand in the cosmetics market strives to be as creative and innovative as possible in addressing the needs of potential consumers. However, there are key marketing approaches and practices that are most commonly applied and form the basis of marketing complexes for market participants:

• Traditional advertising. Despite its banality, high competition requires market players to invest a significant portion of their marketing budget in traditional advertising. Depending on the company, its image, and goals, various promotion channels (TV, radio, glossy publications, outdoor advertising, etc.) are used. The cosmetics and perfumery market is so vast that traditional advertising is the most effective tool for building mass awareness and creating an image among almost all market segments.

• Promotion in digital channels. Powerful brands use digital channels almost in the same way as traditional advertising—huge budgets for video advertising on all possible digital platforms. In addition to video, other tools for promotion in digital channels are also applied, such as review articles, social media pages, search engine optimization of their own internet resources, contextual advertising, etc. On the other hand, companies with smaller budgets choose specific segments for promotion, using a limited number of tools to communicate with a defined niche.

• Collaboration with influencers. Playing a special role in creating the brand's image is the involvement of influential personalities in marketing campaigns. Actors, models, athletes, and others are used as the faces of the brand. Opinion leaders—people known for their own opinions and authority in a certain audience—deserve separate attention. Collaborating with such personalities allows targeting the brand precisely to the niche where the opinion leader is respected. Bloggers, activists, experts, cultural and sports stars—these opinion leaders can make a significant contribution to the marketing of cosmetic products and perfumery, each in their own segment.

• Direct marketing and personalization. Some manufacturers and most successful retailers try to personalize products as much as possible to attract and retain customers. The main tools include consultations with cosmetologists, the development of individual care programs, the selection of cosmetics, and the creation of a desired style, etc. It's interesting to see how quickly large cosmetic companies will leverage Artificial Intelligence opportunities to create perfect personalized care programs and unmatched styles for each individual client. Probably very soon.

• Brand communities. This interaction with customers opens up opportunities for forming a powerful emotional connection that contributes to building a stable and loyal customer base. Providing a platform for exchanging ideas, recommendations, and impressions, brand communities bring consumers closer, support loyalty and interaction among members, promoting not only brand recognition but also enriching the user experience.

• Loyalty programs. Loyalty programs create effective mechanisms for interaction between brands and their customers, providing the latter with additional benefits and incentives for purchases. These programs not only stimulate repeat purchases but also enhance the sense of attachment to the brand by offering exclusive discounts, bonuses, and personalized approaches, making them an effective tool for customer retention and relationship strengthening.

• Unique design. Cosmetics and perfumery are such specific products for which the external appearance of packaging is of particular importance. Understanding the weight of this factor, most manufacturers strive to create unique and attractive designs for packaging and containers as one of the main elements of promotion in retail, on screens, and in publications.

• Sponsorship. Large companies with significant budgets are often sponsors of beauty contests, music concerts, sports competitions, and other socially significant events to attract a specific audience, create awareness, and enhance their image.

It should be noted that within one article, we cannot show all the pitfalls or demonstrate all the marketing methods and tools specific to the mentioned industry. In other words, these are just a few examples of quite general marketing approaches that can be applied to companies in the cosmetics and perfumery industries. From a practical point of view, everything is much more complicated - the choice of a specific marketing strategy and tools depends on the target audience, competitive environment, and unique advantages of the company, etc. At the same time, it is desirable to understand that cosmetics and perfumery marketing may encounter a number of specific problems that are unique to each individual case and require an individual approach to their solution.

Achieving the commercial objectives of a company through effective marketing requires a deep understanding of the market situation, consumer needs, the ability to analyze and explore alternatives, and a creative approach to problem-solving. Our company has extensive experience in defining optimal marketing strategies for our clients' businesses, creating a strong brand and market positioning, as well as developing a marketing mix and implementing the chosen strategy. You can familiarize yourself with the services and solutions our company offers on the "Services" and "Solutions" pages, respectively.