How Natural and Probiotic Beauty Products are Leveraging Disruption through Digital Technologies

Feb 04,2020

As the average cosmetics consumer gains interest in sustainability trends, the demand for clean and ethically sourced personal care and cosmetics products such as probiotic face wash, serums, and moisturizers have also started to witness an upwards trajectory.

The trend of probiotic cosmetic products first came out of Europe and North America and has rapidly become a global phenomenon, as Asian manufacturers and consumers make their presence felt in the industry. In the near future, multinational companies will not only push to launch new ethical and natural product lines, they will also invest in sustainable packaging formats and materials, sustainable ingredient sourcing, while following clean and ethical label trends.

These changes will largely come about as millennials are gaining in terms of spending power. These consumer groups have become the major buying influence for organic, natural and probiotic cosmetics products, which is supported by the rise of major e-retailers in the field. Even as these changes occur, digital technologies are making rapid inroads into the global beauty industry, as brands have taken to new marketing strategies and outlets.

Digital Technologies Aid New Entrants in the Field of Probiotic Cosmetic Products

The beauty sector is displaying substantial advancements in terms of adopting digital tech owing to differences in how the industry handles customer engagement parameters. Digital marketing and the influence of social media for natural and sustainable color cosmetics has surpassed that of other FMCG sector categories.

Earlier, major brands with prominent legacies were leading the industry, not only in terms of prestige but also in terms of market share. However, with the advent of digitalization, new entrants have been shining with impressive growth stories, with natural color cosmetics gaining traction with its visual nature through the medium of digital marketing.

Most of the companies that are benefiting from such changes are single-brand companies which are currently accounting for around 50 per cent of venture capital investments in the industry, which can be attributed to increased awareness by investors into the trend of conscious consumerism, which is leading the push towards not only organic and natural ingredients, but also better environmental and social standards in the production of their offerings.

Consumer Engagement in Social Media Drives Natural and Probiotics Concepts

A rising number of consumers are preferring to learn about natural, organic and probiotic cosmetic products through detailed content, instead of brand advertisements. Consequently, company driven text, pictorial and video content on platforms such as Google, YouTube, and Facebook have risen in numbers of uploads.

In addition, online videos which teach customers makeup application methods have also helped in the rise of micro-influencers with each being able to communicate with up to 100,000 followers. On the other hand, conventional brands are accounting for a smaller proportion of digital consumer interaction, while born-digital brands are continuing to keep the lead.

Brands such as Charlotte Tilbury and Anastasia have more than 10 times the digital followers of any other legacy brand in the industry.

Digital Tech Shapes Shopping and Probiotic Cosmetic Product Preferences for Millennials

Millennials are more likely to assume that newer brands are better or that newer brands have more innovations, following the influence of social media. On the other hand, conventional marketing mediums such as television commercials, displays in stores, and print advertisements are likely to have lesser of an impact.

Millennials are placing greater importance on the impression of personalization and authenticity, while also preferring new and informal interactions, while also pushing for the practice of free sample distribution.

Making use of digital platforms such as YouTube and Instagram has been found to be very effective in terms of perceived quality, which allows such manufacturers to set higher prices for their offerings without much resistance from the consumer base.

Mobile Platforms are Being Recognized in Promoting Brand Loyalty for Probiotic Cosmetics

A number of cosmetic brands are finding that the use of mobile platforms for promotions is becoming effective in bolstering customer loyalty. More than 50 per cent of videos related to the industry on social media channels are being viewed by potential customers on mobile devices.

However, the vast number of competitors and content being pushed onto customers also increases the risk of reducing loyalty as the beauty market is fairly fragmented. The easier access of information through mobile devices increases consideration by consumers, as a large number of people in the consumer base make use of mobiles to check for prices, and information on specific products. Mobile devices are also a popular platform in terms of loyalty programs and internet traffic to brand websites.

On the other hand, mobile platforms have been faulted in the past for lower conversion rates, and now, mobile commerce has gone up by approximately 3 times in recent years. Investing in marketing through mobile has become important and brands are pushing as much as a quarter of the overall budget onto such moves.

Local Brands of Probiotic Cosmetic Products are Rapidly Gaining Greater Traction

Unlike prominent assumptions, consumer decisions to purchase more regional products is not very relevant to nationalistic preferences. In fact, local brands are able to win over larger parts of the market share owing to efforts in three key areas of influence, which are aftersales service, value for money, and product quality.

Consumer perception that local brands are providing offerings that meet all 3 parameters is generating larger demand for such companies. Such developments can be largely attributed to efforts into innovations, and the relaxed regulations for product approval as compared to that of foreign players, which have to go through tons of red tape.

While businesses in the natural and probiotic cosmetics industry are still focusing on understanding consumer inclination towards messaging and marketing, the fact remains that consumers are often unable to tell the difference.

The use of digital platforms on the other hand, combined with developments in big data can provide better solutions for manufacturers towards this issue. Such insights can prove to be a major influencer in terms of the habits of cosmetics shoppers from around the world, even as multinationals continue to push for developments in probiotic cosmetic products.

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