Getting a business to spin can take a lot of work, but according to industry experts, building beauty, beauty Brands pose their own challenges.
In the third module of Beauty business essentialsDigital course offered by Yellowbrick, Fashion Institute of Technology and WWD Beauty Differentiating products in a saturated market requires a combination of imagination and business savvy.
“There are different challenges; First, is the financing and funding it needs to be successful. A budget should be allocated for branding, along with marketing. Then there’s the pressure to bring short-term financial returns,” said Delphine Horvath, professor of cosmetics and perfumery marketing at FIT.
“Branding takes a long-term view, and decision makers tend to focus more on measurable tactics. It usually means building assets like a brand and that’s what we see in companies. Family owned companies such as Estee LauderHermès, having this longevity, they have a long-term vision and really long-term strategic planning. While other companies, such as Coty, have a short-term vision. They are public companies with a short-term vision aimed at delivering short-term results.”
Creating differentiated products is also a must to stand out in the series of brand launches, says Horvath. “Another challenge is in such a saturated market, it’s the ability to define how the brand differentiates itself from the competition. What is your competitive advantage, and is it really the key from a consumer point of view? Ultimately, make branding consistent, not just about logos. It ensures differentiating your brand while keeping the message consistent across hundreds or even thousands of pieces of content.”
Once a brand’s independent trends have been established, aligning with the brand’s purpose while keeping abreast of market trends is key to maintaining momentum.
“What was your brand created for? What we call brand DNA, what is it made of and how do we identify it? said Emily Bond, head of fine fragrances, North America at Givaudan. “How do I create something authentic and authentic to the brand, and what signals within the brand do I have to be right?”
Brands are also advised to keep an eye on market research – find out what’s selling and why – continued Bond. “I try to define, ‘What is the space opportunity? What’s out there and what’s not? ‘ I wanted to make sure I had enough room to sell my products in a pretty messy beauty environment,” she says.
For more information from WWD.com, see:
https://wwd.com/beauty-industry-news/beauty-features/beauty-experts-building-brands-with-longevity-1235057513/ Beauty Experts on Building Brands With Longevity – WWD