2009: crisis or opportunity for the niche beauty brands ?
Thousands of dismissals here, thousands of dismissals elsewhere… Such bank is at the edge of the bankruptcy and such country also… Unemployeds in exponential rise, a strongly slowed down consumption, depressed customers… the future depicts by the media is alarming us on a daily basis.
Rightly, in such a context, one is tempted to wonder about the stability and the future of the beauty niche and emerging brands. When institutional brands suffer badly to the extent of laying off or freezing all new recruiting, which future can one hope for younger brands, less mature ?
The strength of niche brands is their capacity to create innovation and value. They bring to a depressed and over concentrated distribution a real possibility of differentiation.
Moreover, be it Sephora, Marionnaud, Nocibé, Douglas or department stores, each one is searching for “its” exclusive brand. And what occurs in France is also true in England (exclusive launch at Space NK, or Liberty or Selfridges.), in Tokyo (exclusive launch at Isetan or Seibu.), in HongKong (Joyce Beauty, Lane Crawford or Sogo…), in New York (H. Bendel, Sephora or Jeffrey.), in Australia (Mecca Cosmetica.) etc.
In short, all retailers want their own exclusive niche or emerging brand. On which they will be able to strongly communicate in order to attract new customers in search of innovation and differentiation. The objective is also to create traffic for the institutional brands on which the sales objectives (and end of the year discounts (RFA) that depend on them) are absolutely financially vital for the retailers.
Clearly, on all markets, since end 2008, orders have slowed down. But retailers do not slow down their search for niche and emerging brands of quality that are coherent, differentiative, innovative and with a right quality/price ratio. In times of crisis, one needs innovation and dream (of beauty, eternal youth, well being…) to attract customers on the points of sale.
And that falls well, because it is precisely what niche brands do best. Then, let us remain positive and focused. A beautiful brand, well tied up, with a coherent story, an open and pragmatic team, textures and fragrances of quality, has all its chances of success. Even in the current context. The way may just be a little longer.
But beware, no mistake will be allowed.
Then, not to take risks, call us. At Mission Beauté, we will be able to listen to you and to guide you throughout the next months which are announced tumultuous.
Happy crisis management !
Valérie Vanier