The cosmetic industry in the U.S. has become more complex due to several factors, including tougher competition and changing consumer preferences.
Whether it is a hair stylist in Denver or a makeup store in Los Angeles, the emergence of new brands are giving traditional, more established companies a run for their money. In 2016, the entry of independent brands became more evident with a growth rate of 42.7%.
Millennial customers likely account for a large share of the changing tastes among consumers. In the past, customers will only need to associate a brand name with quality service. However, today’s consumers have judged companies based on other factors, driven by seeking authentic products or services. Still, this is quite unsurprising since millennial tend to desire some form of uniqueness.
In terms of competition, pricing serves as a key factor. Almost every company wants to outsmart their rivals by offering the lowest possible prices for their products. This trend has particularly manifested itself on the e-commerce sector, although some traditional stores have begun to adopt this strategy to keep up with business rivals.
While trends in the U.S. cosmetic industry continue to change, a study from the Northwestern University in Illinois noted that more regulations should be in place for personal care and beauty products. The need for more regulatory oversight partly stemmed from the occurrence of more incidents between 2015 and 2016, when more consumers complained about some products’ negative effects.
The regulation system should also be developed since the cosmetics market in the U.S. is the biggest worldwide, with revenue expected to surpass the $62 billion mark.
Changing trends will require the cosmetics industry to keep up, as having a long-established brand name in the country no longer seems to be enough to sustain and attract clients.