XVIII Smart Business Meeting: new trends and challenges in the cosmetics and beauty sector

Under the title New trends and challenges in the cosmetics and beauty sector, the XVIII Smart Business Meeting organized by Business Insider Spain took place on September 22. Leading experts and executives from the sector met at the event to analyze trends, but also the challenge posed by the pandemic or digitization will help an increasingly educated consumer.

The meeting was moderated by the CEO of Axel Springer Spain —editor of Business Insider Spain—, Manuel del Campo, and was sponsored by Havas Media Group and the news aggregator Upday. The following participants took part:

The irruption of the pandemic drew a social reality devoid of any social event, in view of this, the beauty sector focused its efforts on products focused on personal care, but it also had to adapt to a consumer more aware than ever.

Given all that is to come, personalization is positioned as the main ally, but also digitization and social networks, which have become the best showcase for brands.

The meeting focused precisely on addressing the new habits and preferences of consumers or how technology and digitalization have transformed and will transform aesthetic care.

More personal care and personalization: the new post-pandemic consumer

In the first block of the XVIII Smart Business Meeting, the moment that the beauty sector is going through was addressed with 2 great exponents of the industry, such as the emblematic firm Elizabeth Arden and the technology-focused Foreo.

This first block was started by Miguel Gallastegui, Marketing Director of Elizabeth Arden. The manager pointed out that the emergence of the pandemic has completely conditioned personal care.

"The pandemic has changed everything. The lack of social events associated with the use of the mask has meant that categories such as makeup have decreased and, on the other hand, treatment has experienced a boost," he commented.

Faced with this new reality, Ana Guerra, director of Sales and New Business of Foreo in Western Europe, points to 2 key factors: ultra-personalization and new focused technologies such as products that self-detect the need of the skin.

"We are increasingly using devices with artificial intelligence that allow us to learn more and more from consumers and, in turn, they can adapt these uses to their needs", he highlighted.

When asked how a company with more than 100 years of history innovates, such as Elizabeth Arden, its manager is clear: "Innovation has always been in the company's DNA."

Derived from the pandemic, but as part of this innovative appetite, the company started with a strategy of personalized services through Instagram where they resolved doubts. They already have about 3,000 diagnoses that demonstrate the correctness of the proposal.

The impact on the supply chain as a consequence of COVID-19 occupied part of the round table. Both managers agree in this sense that the immediate future depends on what will happen on Black Friday or the increasingly established singles day.

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However, there are nuances in his predictions: "We are working ahead of time and we hope to close a better year than expected. We are reluctant about what is going to happen for Black Friday and Christmas, because there have been so many unforeseen events that we are alert."

The future of the sector: inclusion, diversity and sustainability

The second block of the event, presented by Manuel del Campo, CEO of Axel Springer Spain, addressed the future of the sector hand in hand with who has a lot What to say about him: the content creators.

Camila Redondo is one of those voices and her indisputable influence: under the user @nobodisugly she has almost 3 million followers on the TikTok social network, while her beauty and makeup content accumulates more than 47 million likes.

"I want to share my passion and what I like", explained the influencer. "Especially," he adds, "at such difficult times for everyone." The week on average doesn't matter, it takes to make each video.

Faced with what is to come, the creator is clear who should be listened to: "Generation Z is an audience that we cannot ignore."

The public demands inclusion, diversity and sustainability, says Redondo. Three ideas that, in turn, mark the roadmap for the entire sector.

Digital platforms and brands: the perfect commercial symbiosis

In the last block, Manuel del Campo spoke with Teba Lorenzo, director of Relations with the Brands of TikTok Spain and Ferran Juaní Solans, general director of Havas Media Group International, on the role that brands will play in the face of the new paradigm of the sector and the allies they will find.

Despite the fact that Instagram is the social network par excellence for cosmetics and beauty, TikTok has begun to claim its place. This shine has made the main players in the industry look for a showcase in it.

"Our job is to accompany brands to find their voice, their tone within TikTok", the directive specifies.

As for beauty, Lorenzo adds that the platform provides an extra component: the didactic component. The directive thus tries to explain that the social network is far from the scope of followers.

"We are in the world of creating inspirational and educational content. That is the world where we move", he added.

Regarding the role that banners can play, Lorenzo is clear: "They are always told not to make ads, but TikToks." "It is important to adapt to the medium, to do it authentically and hand in hand with creators."

Proof of this above materializes in the hashtag boom "TikTok made me buy it" (TikTok made me buy, in Spanish), which explains the directive that already has 800 million views.

For his part, Solans added that all firms are in the battle for relevance. In this sense, he explains that if they all disappeared today, 75% of them would not matter if they declined. The struggle thus resides in being in that other 25%.

And in this fight, positioning a brand in a medium that is relevant or not changes everything completely. Also that the brands show themselves as an active part of the community.

"Consumers demand that brands be agents that directly invest time in improving society, people and the planet", he explained.

Given the path to follow, both managers agree that brands tend more and more to approach a network strategy with a holistic vision. "There are brands that in less than 30 seconds, generate brand awareness until the purchase."

In this sense, Solans points out that the Chinese platforms are ahead of us in this regard. Something that could gain speed if, as Lorenzo advances, TikTok Shopping —a functionality that allows purchases from the platform— becomes a reality in Spain.

If you want to see the complete event, click here.