More than just skin deep

Consumers are placing more value on health and wellness these days, and the definition of health and wellness has evolved. The phrase now refers to a more holistic state of being, where one’s mental, physical and emotional health are in sync. Looking great, feeling good and sleeping well are the new luxuries that consumers want to enjoy and flaunt.

Today’s customers want to be healthy and happy, no matter who they are. Owning the most expensive or the latest goods has taken a back seat to looking good and feeling good, and consumers are showing an increasing preference for participating in activities and indulging in experiences that promote their well-being — and sharing them with their friends.

People are spending on a holistic approach to health and wellness that includes nearly every aspect of life, even sleep. Consumers are increasingly participating in fitness classes and activities that improve well-being; using products, devices and apps that aid sleep; and eating organic and natural foods, taking health supplements, and following special diets.

Millennials are driving this growth. According to the Harris Group, 72% of millennials would rather spend money on experiences than on material goods, and that preference is forcing retailers to adapt as more millennials ascend into adulthood and increase their spending power. For millennials, wellness is a daily pursuit, and one they are willing to spend on.

The global beauty and personal products market is nearly $400 billion, and expected to grow to more than $700 billion by 2026. And the global skincare market increased nearly 60% in the past decade, and is projected to be worth $183 billion in four years.

Rapidly changing cosmetic preferences are affecting the global marketplace, as most consumers find cruelty towards animals unethical and are spreading awareness against it. Moreover, embracing natural substitutes such as plant-based personal care products is working in favor of the market. More and more people are striving to make purchases that are in line with their personal values, whether it’s to use more sustainable ingredients, reduce pollution, or avoid animal cruelty.

A tale of two fates

Recent retail news depicts a tale of two distinct fates: stores that are prospering, and those that are barely hanging on. Why are some retailers thriving while others are gasping for air? Smart use of technology and recognition of customer values is what shapes the performance of modern retailers. As consumer habits and beliefs evolve, so too should retail strategies.

In almost every category of consumer packaged goods, sustainability is where the growth is. Therefore, it’s critical for modern retailers to prove to consumers that they make sustainability a priority in business operations, whether it’s sourcing only from sustainable textile mills or running stores on 100% renewable energy. Consumers will gravitate to brands that demonstrate this larger purpose.

Retailers today must be invested in technology in order to survive. Omnichannel retail — or seamlessly connecting different channels within one shopping journey — is essential in this effort because by offering multiple platforms for consumers to shop on, retailers will offer increased convenience and personalization and create opportunities to maximize revenue.

What sets the health and beauty industry apart? The major difference has been a laser focus on technology. Health and beauty retailers have adopted digital strategies to enhance customer engagement. The combination of leveraging platforms like YouTube, Pinterest and Instagram — which shoppers look to for tutorials — with in-store technology that provides personalized product recommendations has transformed shopping in the beauty industry.

Health and beauty retailers have done an exceptional job at serving up top-notch digital and in-store experiences, recognizing shifting consumer values and catering to different types of consumers. It’s clear from the rise of specialty beauty retailers that keeping up with consumer preferences and new technologies is the primary way that retailers will stay afloat — or better yet, prosper — in the future.

Role of TMP

Here at TMP, we understand how important it is to help customers feel good, having been in the health and beauty industry for more than 30 years. We reinforce the client’s message, engaging the customers, gently nudging them to try the product, and making them regular users, who return month after month.

We appeal to the customer’s need for a healthy lifestyle, whether it’s through weight loss, vitamins, minerals and supplements or cosmetics that make you glow from the inside. We help clients boost their customers’ self-confidence, by helping them feel younger and healthier. After all, a healthy customer is always a happy customer!