"Beauty is still growing. NielsenIQ data shows the US beauty and personal care market reached $123.6 billion in the latest 52 weeks, up 11.4% year-on-year, with online sales now accounting for nearly half of the market."
"When all of those brands launched, it was very possible to do this all DTC. You would start your website, use Meta and Google to target customers, and keep going."
"That model, she adds, is now 'a lot less' viable, as rising acquisition costs and privacy changes fundamentally reshape how brands connect with consumers."
The beauty industry once thrived on a direct-to-consumer model, with brands like Glossier and Huda Beauty achieving significant success. However, as these brands reach their ten-year mark, the landscape has shifted. The US beauty market continues to grow, but the rise of Amazon and TikTok Shop, along with increased advertising costs, has disrupted the original business model. Analysts note that the previous strategies for customer acquisition are now less effective, indicating a need for adaptation in the industry.
Read at Vogue
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