The New Beauty Industry: Adoption of the Hygiene Culture
In personal care and beauty, nearly three-quarters (72%) of all responding respondents, regardless of gender, stated that it was important to buy clean or healthy products. While not easy to meet, these needs are also different by demographic and economy and, therefore, highly sensitive to price. This could mean a significant chunk of the future cosmetics revenue. The ability to tailor an offer to the customer is also important. As the old saying goes: “One man’s trash is another man’s treasure.”
The value chain starts with production, which includes packaging and shipping. The last leg of the value chain, after-sales and before the customer, is returns and exchanges. As a result, we see beauty and personal care products as being as much about the manufacturer as they are about the customer. To create new, useful products, companies must establish a strong value chain. The manufacturer develops the product, supplies the raw materials, pays for its manufacturing, and delivers the final product to the end-user.
An increasing number of manufacturers are choosing to supply their own ingredients. In addition to savings on overhead and labor, manufacturers can ensure consistency and reliability of the finished product. While maintaining control over the distribution of natural products, manufacturers also can control the use of natural ingredients. By developing a value stream plan, they can assure consumers of their continued access to quality, safe, natural products at reasonable prices. When consumers have more options, they have more leverage.
Consumers can help the supply chain move forward and obtain affordable and safe personal care products. The growing awareness of the importance of ingredients, the increasing affordability of natural ingredients, and the need for consistency and reliability will drive consumers to support manufacturers who put the environment and their health first. Companies that choose to implement the “green” movement will benefit from the increased buying power of consumers. This advantage will allow them to provide affordable clean products and support the growing awareness of clean products, health, and nutrition.
By purchasing only natural ingredients, manufacturers will maintain consistent product quality, consistency, and profitability. As consumers become more aware of the importance of ingredients and the science of botanical formulations, companies will face greater competition as smaller manufacturers look to cash in on the consumer’s desire for healthy and safe products. As a result, it becomes imperative that larger manufacturers take the lead in providing consistent and reliable formulas to the marketplace.
In response to the increased demand for safe and effective natural products, several prominent celebrities and personalities have supported better ingredients and an improved environmental footprint. Social media has also played a significant role in the dialogue between consumers and companies. A new fan base has been created by encouraging consumers to post questions or concerns on social media websites such as Facebook, Twitter, and Instagram. As more people come online to voice their opinions or develop new advocacy based on their experience with products containing natural ingredients, the media will become an important advocate and media outlet for the most promising natural products and ingredients.
As the value chain is broken down, the marketplace will become more flexible and adaptable to meet the need
s of both small and large consumers. Consumers will have greater access to safe and effective natural products and services at lower costs. As a result of the value chain and increased access to safe and effective natural products and services, it is expected that the industry will experience continued financial growth. Additionally, it is anticipated that increased regulations and legislation will contribute to the continued improvement of the beauty industry.
The increase in purchasing behavior and shift in purchasing preferences that accompany the adoption of the “hygiene chic” culture should serve as a strong motivating factor for marketers and manufacturers to create innovative products and services. The increase in purchasing behavior and shifting consumer preferences should also serve as an incentive to consumers who are not part of the “hashtag generation.” This group includes baby boomers, seniors, and those in other demographics who have grown up using natural and safe products to maintain personal hygiene and prevent illness. With these factors, consumers should experience increased product quality, expanded brand loyalty, and increased profitability in the beauty industry.