Elisabeth King reports on celebrity endorsements failing to influence, Sephora mimicking Amazon Prime, beauty beverages as the fastest growing nutricosmetic sector, and natural and normal the way forward in beauty and fashion.
Celebrity endorsements fail influence test
Celebrities have been endorsing products since the 18th century. Over the past decade though, there's been an explosion of famous faces spruiking everything from beer to credit cards. Barely a week passes in the beauty industry without another famous visage inking a deal for a new acne, skincare or make-up product.
But the latest collation of stats on the percentage of worldwide internet users who discovered brands though celebrity endorsements in 2014 isn't as high as the current boom would suggest.
According to Statista, a leading global researcher, 25% of 16-24 year olds are influenced by celebrity endorsements, followed by 21% of 25-34 years old, 15% of 35-44 year olds, 11% of 45-54 year olds and 7% of 55-64 year olds. That means 3 out of 4 of those aged 16 to 24 are not swayed by a famous face. Nor are 4 out of 5 of people aged 25-34, 7 out of 8 aged 35-44, 9 out of 10 in the 45-54 age bracket and even less in the 55-64 demographic.
Celebrity fatigue is nothing new. A spree of studies and research papers over the past two to three years have revealed similar results. The worst performers are ads that partner celebrities with brands they have little or no connection to, reports Ace Metrix, such as Jay-Z's endorsement of Samsung mobile phones. A global study by Nielsen found that humour is the big winner when reaching out to consumers - 47% - but celebrities and athletes resonated with only 12% and 8%, respectively.
Social media isn't improving the situation reveals research from Social Toast. Many celebs have millions of followers but consumers of all ages are more likely to be influenced by friends and family, with their favourite bloggers ranking a distant third.
A fact recently confirmed by with its "Share The Magic" campaign. The brand debuted the promotion first in New Zealand last June and in Australia in February, sending out 10 deluxe minis of its best-selling rosehip products. People were invited to share them with family and friends. The results aren't in for Australia but Trilogy experienced a 26% upsurge in sales of its rosehip products in New Zealand over the following few months.
Sephora mimics Amazon Prime
Amazon Prime debuted over 10 years ago as a paid subsciption service offering customers unlimited two-day shipping for free. The online giant soon discovered it was a great way to make people spend more. Today, Amazon Prime customers spend three times more than regular customers on a wide range of goods from books to toys.
Sephora has unveiled a similar deal in the US. For US$10 a year, Flash account shoppers can access unlimited free two-day shipping, unburdened by minimum purchase requirements. If they can't wait, they can pay for overnight shipments for only US$$5.95 - a discount from the usual US$16.95.
Anyone spending more than US$1000 at Sephora in a calendar year qualifies for VIB Rouge membership and doesn't have to pay the US$10 annual fee. In a pilot try-out for the Flash offer, Sephora discovered the same buying pattern as Amazon. Customers who signed on for the subscription offer generally spent twice as much as regular customers.
Beauty beverages fastest growing nutricosmetic sector
According to a new report from Global Industry Analysts (GIA), worldwide demand for ready-to-drink beauty and health beverages will reach US$7.4 billion a year by 2020 - the strongest growing sector of the nutricosmetics category. Fortified waters are among the most popular choices, says GIA, as more and more consumers look beyond basic hydration. The US is the fastest-growing market with an annual growth rate of 11.2%, buoyed by increasing awareness of the benefits of nutricosmetics and the continued roll-out of innovative products.
Apart from the obvious crossover between beauty and wellness, the allergy-free cosmetics niche, a preference for natural products and the trend for full disclosure about product ingredients is driving increased sales. Urban lifestyles and rising affluence are also major factors in the upsurge of beauty beverage products says GIA. Herbal teas and exotic fruit juices are also riding the wave.
Natural and normal the way forward in beauty and fashion
Time flies is a cliche for good reason. A US study pointed out the obvious last week. In 10 years time, 80% of Millennials will be parents. And as they start hunting for bargain deals on body washes, cutlery and cars, they won't have as much time for complicated beauty routines and time-consuming treatments.
Datamonitor predicts that natural will be the way forward, as the "Real Housewives" look of hair extensions, false eyelashes and extreme facials fades into memory. Citing the viral response to unretouched photos of Cindy Crawford leaked from a US Marie Claire fashion shoot, the researcher says that the beauty industry will need to lift its game to come up with more diverse ways to enhance the "imperfect" beauty of every woman. Current research has revealed that 45% of women today want their looks to reflect their age and 55% believe that the images of beauty in ads are unrealistic.
Giorgio Armani is ahead of the game, as usual. As the brand celebrates its 40th anniversary this year, the "Emperor of Style" is launching a new women's collection to be called New Normal - in stores from June. "The idea is to start with classic designs to create a new classic", he says. "It's a collection meant to last, which will be renewed as we go but will remain rooted in the classic style".
Snippets from the wires
- Consumers are taking better care of their teeth says P&G power brand, . Following last year's launch of its dental care app, downloads have exceeded 300,000 worldwide.
- Harrods are attending London's Chelsea Flower Show for the first time in an official capacity in May. The posh retailer will unveil The Fragrance Garden, a concept floral show that celebrates perfume's close relationship with flowers.
- The search is on to find an alternative to microbeads in exfoliants and other beauty products. Global ingredient manufacturers such as Evonik and Floratech are already working on bio-based solutions. Honeywell has also announced a partnership with bio-materials company Metabolix to develop a range called Asena as a natural replacement for plastic.
- Designer shades have become a major cash cow for many of the biggest names in fashion. Global eyewear giant Luxottica, who own Ray-Ban and Oakley and operate the eyewear licenses for Chanel, , Dolce & Gabbana, Giorgio Armani and , have reported a net profit growth of 18% in 2014 to 642.6 million euros ($908 million).
- David Jones stocks Kate Spade bags and shoes. But the New York designer is poised to become the next Ralph Lauren with the May launch of a homewares range, including furniture, wallpaper, rugs and fabrics. A few months later in August, devotees will be treated to All in Good Taste, a range of Kate Spade kitchen goods.
- Coach is also on track to become a global lifestyle brand. The NYC-based brand is celebrating its 75th anniversary this year and will open its first standalone store in France on the Rue Saint-Honore in Paris in the northern hemipshere Autumn.
Main image: Tuula Vintage
Carousel image: Oracle Fox Blog
