Fortress Brand, a full-service Amazon agency based in New York City, aims to stay on top of today’s rapidly changing market by investing deeply in technology, data, and research. Clients include acclaimed beauty, health, and wellness brands Glow Recipe, Versed, and Youth to the People. In this article, Gabby Barikian, Director of Marketing, forecasts what beauty brands can expect to see happening with the e-commerce giant in 2022.
Just as suddenly as it arrived, 2021 has officially come to an end. In a time of continually adjusting to “new normals,” it’s safe to say that the beauty world was pushed to pivot and swiftly adapt to today’s evolving market, industry trends, and consumer habits. While the world remains in uncertainty, one evolution is certain — online marketplaces such as Amazon are becoming the go-to e-commerce destination for beauty enthusiasts for everything from cosmetics to skin care, hair care, wellness, and beyond.
Today’s beauty brands can no longer ignore the value, convenience, and customer service these marketplaces deliver to consumers. While 2021 reinforced the power of Amazon for beauty and personal care, 2022 brings a new era of projections for beauty brands, specifically on online marketplaces.
The Power of Influencers and #BeautyTok
For beauty brands, the power of influencers and micro-influencers, specifically on TikTok, is going to continue to grow and push the beauty space on Amazon in 2022. TikTok drives today’s most popular skin care and cosmetics trends (#BeautyTok), including favorite Amazon finds, and Gen Z and millennial consumers often turn to the platform to research their next purchases. In fact, the beauty trends that emerge organically from TikTok often directly correlate with upward product search trends and sales on Amazon.
Micro-influencers specifically have gained significant momentum over the last year as Amazon consumers tend to trust micro-influencers over major celebrity endorsements or influencers with millions of followers. They not only provide a more authentic relationship with their followers but see higher engagement rates and are often the more cost-effective option for brands to partner with due to their smaller followings and niche audiences.
Influencers in the Amazon Influencer Program now run their own storefront pages with recommendations of “must-have” items and use social channels such as Instagram and TikTok to push their storefronts, giving beauty brands a unique opportunity to uncover new audiences for their products. Pair that with the expansion of Amazon Live and Amazon’s curated partnerships with TV networks (Bravo, OWN, ABC, etc.), and a growing beauty brand can reach a wide audience within the digital space.
Showing Up Meaningfully, Selling with Purpose
Nowadays, staying power requires much more effort than it did in the past. Consumers want to know that the brands they are purchasing from have a true brand purpose, contribute to their communities, are committed to authenticity, and reflect their individual values and beliefs — from mental wellbeing and inclusivity to social justice and climate change. Purpose-driven brands ultimately cultivate deeper relationships with their customers because they not only demonstrate that they are listening to their audience but are taking actionable steps to align their brand with their values in an authentic way.
On Amazon, including a wide range of demographics is becoming increasingly important for the beauty brands that have long felt too exclusive. They are targeting markets and adjusting new product development strategies that are now integral to defining the future of inclusive beauty. Whether it’s gender-neutralizing personal care, expanding formula shades, embracing natural hair textures, or spotlighting older age groups, brands are targeting the disparities in “traditional beauty” to invite long underserved markets.
Climate and Sustainability Pledge
Amazon recently announced its goal of emitting net-zero carbon by 2040 and continues to add new certifications to its existing Climate Pledge Friendly (CPF) initiative. As environmental concerns grow, consumers are increasingly shopping with consciousness and sustainability in mind and this program is projected to see a huge uptick based on evolving purchasing preferences.
On Amazon specifically, customers can filter their search to find Climate Pledge Friendly products to easily discover beauty and wellness products that qualify as sustainable. Products that qualify are verified with a bright green CPF badge and have additional sustainability information on the product pages. The green badge signifies that the product has one or more certifications on Amazon’s list of external certifications, including EWG Verified, U.S. Environmental Protection Agency Safer Choice, and Animal Welfare Approved.
Now more than ever, beauty brands are implementing real changes and actively working to reduce their carbon footprint, and they want to let their customers know they are committed to this shift. Being a “clean brand” has evolved beyond just using clean ingredients; it is now at the forefront of innovation in beauty, from ethically sourcing materials to rethinking sustainable formulations and being intentional with packaging.
The Gen Z and Millennial Effect
The buying power of millennials and Gen Z is not going anywhere, and the way beauty brands on Amazon approach these cohorts will be crucial to their success. For Gen Z and millennials, beauty is not about perfection as it once was, but about individuality and personal expression. They are not only driving the beauty trends but influencing the very products beauty brands create and the stories they tell. Trends like Y2K and 90’s fashion and beauty are coming back full-force, interests like hair play, eyebrow expression, and imaginative Euphoria-inspired eye makeup are having a moment, and inclusive results-driven skincare and haircare continue to be important. This is certainly going to continue into 2022 as millennials and Gen Z dominate the online market.
Gen Z and millennials are also leading the digital era. For beauty brands, tech innovation and personalization will continue to be big on Amazon to deliver curated experiences for consumers. Amazon Personalize, for example, delivers unique homepage experiences, provides product recommendations based on user history, and helps customers discover products faster. Not only is it beneficial for an increasingly tech-driven generation that is more thoughtful than ever about their purchases, but beauty brands can also benefit from the highly targeted feature.
Trust in Expert-Led Skin Care
At the start of the pandemic, people mainly remained indoors and were not frequenting their dermatologists as much as they once did. However, with increased trust in science and interest in health, this shift from in-person visits ultimately led to consumer demand for doctor-led skincare brands created by clinical dermatologists and health professionals.
Consumers ultimately want to turn to someone that they trust, especially when it comes to skincare. While brands like these have been around for some time, consumers are now increasingly seeking out science-focused formulations and the expertise of skincare professionals like Dr. Barbara Sturm or Dr. Dennis Gross, and these are just a few of many that are expected to gain popularity on the Amazon marketplace.
Thinking Internationally
The impact of the pandemic reignited the value of e-commerce as consumers adapted their shopping behaviors, with most turning to Amazon. Globally, online marketplaces continue to gain traction due to wide product assortment, price transparency, and customer-centric fulfillment options. Beauty brands that have been successful on Amazon U.S. might find it the right time to launch in the Amazon UK and EU markets, as Amazon is the dominant e-commerce marketplace player by leaps across UK, Germany, France, Italy, and Spain. The UK and EU’s 780M potential shoppers and high percentage of online shoppers (+80% in Western Europe) rival the largest e-commerce populations outside of the US (Source: Euromonitor).
Amazon currently takes the highest percentage of online beauty sales in Western Europe. With Prime cross-border fulfillment options, this trend will continue across Central, Southern, and Eastern Europe as well. The still-developing competition of beauty on Amazon allows for rising stars to compete with the likes of Cerave and Dove. It is more important than ever for brands to increase customer-centricity across global markets, not just in their home country, and ensure they are showing up where their customers shop today.
The Rebirth of Brand on Amazon
It is also predicted that 2022 will be the rebirth of brand on Amazon. Amazon will be changing everything from KPIs — offering tools to measure brand awareness, consideration, customer acquisition costs, and lifetime value — to offering full-funnel advertising solutions and forms of community engagement. Amazon will also be increasingly “pay-to-play” — meaning more sponsored spots on the search page and more user engagement features like following brands to stay up to date on new product launches. Beauty brands can surely benefit from the holistic set of tools Amazon is able to provide.
The beauty universe is continually evolving and there is always room for new innovations and trends. If one thing is for sure, it’s that brands should continue to be authentic and purpose-driven, even on online marketplaces like Amazon. Once ignored, beauty companies are now realizing that Amazon is an increasingly important channel in the space. Having a thoughtful strategy on the platform and paying attention to the trends shaping the beauty world will be vital for brands to stand out from the rest in 2022 and beyond.
To learn more about Fortress Brand, please click here.