The beauty industry is experiencing a lack of revolutionary innovation
Despite the fourth industrial revolution at Euromonitor International said, breakthrough innovations in the field of beauty rare. However, the industry can create new needs among consumers and to develop products, which currently does not exist, with the right approach and way of thinking.
Many cosmetic companies to list their innovations include the creation of independent brands, entering new markets or active promotion in social networks. However, analyst research in the field of beauty and fashion in Euromonitor International – Gabriella Beckwith noted that “breakthrough innovation” associated with creating something not existing before this moment.
“The developers of the revolutionary rethinking solutions to the market; they are able to see beyond and think outside the box. As a rule, they are focused on the consumer, can detect a gap in the market and offer something that meets the needs of the customers which they could not even suspect, said Beckwith. – Such companies are often used and are using technology to interact with consumers and provide an authentic experience. They also behave fearlessly, striving to revolutionize the category and they do not involve a large bureaucracy”.
According to Beckwith, Euromonitor International has identified three types of companies able to make a breakthrough: “rebels” – a small, dynamic and fast growing brands; operators – an international Corporation with a large market share, encourouge independent brands; “local brands” – acting locally in its home market. In this case, Ms. Beckwith notes that in the cosmetic market until there is no such “revolutionary” player, but its appearance is quite possible, as was the case with Netflix and Uber.
The most promising segment, according to Gabriella Beckwith is personalized products for skin care: “I think that the combination of personalization technology and artificial intelligence might lead to the fact that in the future we will see many breakthroughs in the market.”
Major players in the beauty industry are faced with problems related to bureaucracy, which served as a major source of promotion strategy “incubation” independent or smaller brands. This approach contributed to the creation of “entrepreneurial environment” that these ideas flourished and were truly innovative.
According to Euromonitor International, breakthrough innovations in the field of beauty lies in “creating value for the consumer and interaction with the consumer.” Local brands handle this particularly well, because it was integrated with consumers at the local level and really understand what is important to them. “The idea is to start there – with the consumer and work back to create a product that fits their lives and needs,” said Beckwith, noting also that it is important to create needs that consumers never knew.
Experts believe that the American beauty market, as a rule, leads to breakthrough innovation: small players take a significant share of the market by big brands. This trend has now spread to Western Europe. And although the middle East and Africa, it seems “a little behind”, but brands still have opportunities for growth and innovation, and there may be large changes in the future. “One of the things related to disruptive technologies is that they fearlessly lead. Thus, the idea is to be bold and stand out among all the others,” says Beckwith.