Spotlight on: The state of the beauty industry in 2023
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Spotlight on: The state of the beauty industry in 2023 © 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Contents
Introduction 3
Where are beauty consumers shopping? 4
What are beauty shoppers looking for in 2023? 12
How to meet shopper needs. 21
Personalized shopping experiences 30
The future of beauty e-commerce 34
Conclusion and next steps 38
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Introduction
Beauty maintains a healthy share of the global market as we head into
2023. With an estimated total revenue of $90.2 billion across the
omnichannel (on and offline channels) in 2022, a figure that was up
6.7% from the previous year, beauty revenue looks set to continue
growing in 2023.
As a company focused on digitalizing the shopper experience, NIQ
Brandbank was interested in deep diving into trending beauty product
attributes, products, and make-up styles that are influencing shopper
spending habits in 2023.
As we head deeper into 2023 and the pandemic shifts to the back of
shopper minds around the globe, we examined what
shoppers' priorities are and how the e-commerce landscape can
support these needs.
With the ever-surging global cost-of-living crisis impacting shoppers,
what is the impact on the beauty industry? Are shoppers still seeking
luxury beauty or is affordable beauty winning out?
This report examines the state of the beauty industry in 2023, and how
brands and retailers can create the best, most-seamless shopping
experiences to meet the needs of today’s omnichannel beauty
shoppers.
Source: NIQ: https://nielseniq.com/global/en/insights/report/2023/2023-state-of-the-beauty-industry/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 3
Where are beauty
consumers
shopping?
Where and how are beauty shoppers
discovering and purchasing products
in 2023?
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 4
The online vs. in-store divide
Total 2022 Beauty Omni Sales $90.2B +6.7%(2021)
It’s clear that many shoppers still prefer buying their beauty
products in a physical store. In 2022, in-store sales accounted for
62% beauty sales. With shops returning to the pre-pandemic
norm, footfall in shops has continued to rise around the world.
However, e-commerce isn’t going anywhere. NIQ data indicates
that online sales value increased by 6.7% from 2021, indicating
that online shopping is a rapidly expanding space. Online
38%
Where are they shopping online?
Online shoppers are split between an ever-growing plethora of
online shopping channels, from larger general online retailers,
beauty-specific retailers and wholesalers to direct-to-consumer
(DTC) brand websites and even social media — the e-commerce
sphere is growing rapidly. In Store
62%
NIQ data found that the most popular outlet for beauty purchases
in 2022 was Amazon, with 17% of omnichannel sales taking
place via the online retail giant.
The largest area of growth is on social media, with 60% of online
consumers reporting they made at least one purchase via a
social platform in 2020.
In Store Online
Source: NielsenIQ Omnipanel Shopper 52 w eek period ending 9/10/22 *Q3 is 10 w eeks ending 9/10/22, https://nielseniq.com/global/en/insights/education/2022/social-shopping-is-the-future-of-e-commerce/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 5
Beauty sales growth by category
Total growth ($ % Chg) YA
Beauty sales increased by 6.7% overall in 2022, but which
Total Omni Total Instore Total Online
categories saw growth, and more importantly, which categories
saw a surge in online sales performance?
Fragrances 15.3% 3.7% 26.7%
• The largest category experiencing a growth in overall, and
Deodorant 14.8% 13.4% 21.8%
online sales was fragrances, with 15.3% growth across the
omnichannel and 26.7% growth online compared to a
lesser 3.7% growth in store. Sun Care 11.4% 10.0% 14.2%
Cosmetics & Nail 9.1% 6.6% 13.0%
• Deodorants also made large sales gains online, up 21.8%.
With the popularity of eco-friendly refillable deodorant Facial Skin Care 7.2% 7.7% 6.7%
subscription services like ‘Wild Deodorants’ and ‘Fussy’ this
growth will likely continue in 2023.
HBL 6.0% 4.5% 8.8%
• Hair removal, bath, and shower products saw declines in Hair Care 5.7% 0.8% 16.5%
in-store sales rather than growth, compared with growth in
online sales performance. Hair Removal 0.3% -1.8% 4.8%
Bath & Shower -0.4% -2.2% 6.2%
Source: NielsenIQ Omnishopper Panel, 52 weeks ending 12/31/22
Beauty Care (Cosmetics & Nail Grooming, Facial Skin Care, Fragrances, Hair Care, HBL, Hair Remov al, Sun Care, Deodorant)
Source: NielsenIQ Trending Attributes, Fragrance, amazon.com, ulta.com, sephora,com, Oct-Dec 2023
6
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Beauty across the Omnichannel
Fenty Beauty Case Study: How Fenty conquered the omnichannel
Superstar recording artist and international celebrity Fenty Beauty also manages a variety of successful
Rihanna released her own make-up line, Fenty social media platforms, boasting 12.2 million
Beauty, in late 2017 to critical acclaim. The followers on the Fenty Beauty Instagram account
brand caught shopper attention with its wide range and over 2 million followers and a total of 37.2
of shades for a variety of skin tones, which lead to million likes on its TikTok account.
consistent sold-out launches and restocks Fenty Beauty’s social media accounts demonstrate
throughout the first year of business. products on a variety of influencers and make-up
Fenty’s D2C website features a variety of interactive artists, aiding with product discovery. Fenty Beauty
content, including virtual try-on options, product even boasts its own selection of filters on TikTok,
photography, tutorial videos featuring Rihanna including one that helps users identify their face
herself, and more, all designed to engage and shape and learn how to apply contour products
inform the shopper in different ways. The to enhance their natural beauty. Fenty beauty offers
experience while shopping on Fenty’s website is a personalized experience from product discovery
highly personalized, something that beauty to purchase.
shoppers are definitely looking for. The brand capitalized on Rihanna’s 2023 Super
However, Fenty has grown massively beyond the Bowl halftime performance — read on to see how
D2C website it started with. Products are available Fenty Beauty exemplifies best-in-class omnichannel
to shop in beauty retailers across the world. Fenty marketing >>>
Beauty and Skin are now available across the world
in-store and online at a range of retailers, including
Boots, Sephora, Amazon, and more.
Image sources: https://www.tiktok.com/@fentybeauty, https://www.instagram.com/fentybeauty/?hl=en
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Beauty across the Omnichannel
Fenty Beauty Case Study: From Super Bowl to bestseller
Fast forward to 2023, and Rihanna’s now iconic front of one of the largest TV audiences of the year
Super Bowl half-time show. To coincide with her and in a way that got people talking. And this
performance, Fenty Beauty released a full make- translated directly to sales, indeed, Fenty Beauty
up collection including Super Bowl x Fenty branded reportedly garnered $5.6 million in earned media in
items, like a football shaped beauty-blender the first 12 hours following the game and searches
sponge and some limited-edition shades of the for the brand increased by 883%.
brand’s best-selling lip-glosses.
The Super Bowl collaboration didn’t end with a From the Half Time Show to final sale
specific make-up line. In the middle of the set,
Rihanna picked up a bright pink compact from one Fenty Beauty made sure to highlight the viral
of her dancers and touched up her make up before moment by placing the product front and centre of
resuming the show. the D2C webpage with the tag ‘Halftime approved.’
This instantly boosts the shopper experience by
That pink compact turned out to be none other providing them with an easy journey to purchase,
than a Fenty Beauty Invisimatte Instant Setting and saving them time and effort in finding the exact
Blotting Powder. Nielsen reports that over 113 product used on stage. This is what NIQ
million U.S. viewers tuned in to the game, along Brandbank considers a complete omnichannel
with millions of football fans around the world — shopping experience.
many tuned in just for Rihanna, with an estimated
increase of an extra 5 million viewers just for the
half-time performance. Rihanna got her brand in
https://www.nielsen.com/news-center/2023/super-bowl-lvii-totals-more-than-113-million-viewers-ranks-second-most-watched-game-ever, https://www.adweek.com/brand-marketing/rihanna-fenty-beauty-advertising-mvp-super-bowl-57/,
https://www.marketinginasia.com/rihannas-fenty-beauty-sales-increase-after-superbowl-performance/ Image sources: https://fentybeauty.com/, https://www.dailymail.co.uk/tvshowbiz/article-11743747/Rihanna-pays-homage-Fenty-Beauty-brand-epic-Super-
Bow l-LVII-Halftime-performance.html
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Social Media and product discovery
As we’ve discussed in previous reports, shoppers, particularly those
from younger generations like Millennials and Gen Z, are shopping
directly from social media pages. This trend saw enourmous growth in
2022, with partnerships established between YouTube and Shopify, as
well as the continuing mega-growth of the TikTok shop.
Brands are starting to take note across the beauty space, spending
big on their social media marketing campaigns and investing in in-app
social media storefronts. The Drum reports that 75% of 21-34 year
olds would be persuaded to purchase a brand if they can shop the
product directly from social media platforms.
With a significant portion of younger generations actively shopping
directly from social media, it's important that beauty companies are
paying attention to the noise across various channels, in-touch with
their shopper’s viewing habits, and following trends.
Trends are established and accelerated on social media platforms,
largely by influencers with big followings. Getting products in the
hands of the right influencers with the right audiences can make or
break brands. Luxury beauty powerhouses like Estee Lauder are now
spending around 75% of their marketing budget on beauty
influencers across the social media landscape, demonstrating just
how serious brands are taking the power of influencers.
Sources: https://www.thedrum.com/opinion/2021/01/04/social-commerce-transforming-the-online-shopping-experience
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 9
The Power of influencers
The ‘Alix Earle Effect,’ TikTok, and product discovery
Viral TikTok sensation Alix Earle, a 22-year-old influencer from New
Jersey, is the perfect example of the power of influencers in today’s
beauty-shopping experience.
Alix Earle became famous for her simple "get ready with me" (GRWM)
video style (in which a content creator walks viewers through their
make-up/hair routine for getting ready for the day or an event) and has
since amassed nearly 4 million followers, over 255.5 million likes, and
1.5 billion views on TikTok, and roughly 2.3 million followers on
Instagram.
We don’t need to understand why Alix is so influential for this report, A snapshot of Alix Earle’s ‘get ready with me’ content
but we do need to note her impact on beauty trends. Known as the
‘Alix Earle effect,' the influencer has a history of making products sell-
out globally simply by featuring them in a video on her TikTok account.
One of Alix’s holy-grail products is a simple white eyeliner pencil, a
vital part of her viral make-up GRWM videos. Since her rise to online
fame, the hashtag #alixearleeyeliner has over 551M views on TikTok
and the NYX eyeliner she showcases has sold-out online and across
stores in the United States. Since then, other beauty products Alix has
highlighted, including Drunk Elephant D-Bronzi Anti-Pollution Sunshine
Serum Drops, continue to sell out as soon as Alix mentions them to
her loyal followers. Some of Alix’s trending products from brands NYX and Drunk Elephant
Source: https://stylecaster.com/beauty/alix-earle-makeup/, TikTok.com
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 10The Power of Alix Earle
Influencers curating omnichannel experiences
We can see that influencers like Alix Earle have a huge impact on which products,
brands, and attributes are trending, but what about their influence on the omnichannel
experience?
Creating seamless end-to-end experiences is vital to keeping online shoppers loyal and
providing a best-in-class shopping experience. The best omnichannel experiences are
those that allow brands to be recognizable across platforms, meaning consistency is
required between product image quality, data quality, and accessibility. But it also means
creating dynamic links between social media discovery and places to purchase.
Here's a best-in-class example of how to create effective links between discovery and
purchase:
Amazon has recently created 'store-fronts' that enable social media influencers/creators
to operate their own miniature amazon stores filled with the products they use and
recommend. Influencers are even incentivized with commissions based on the number of
click throughs and purchases made from their store-fronts.
This is an example of a well-crafted, end-to-end experience that allows the shopper to
seamlessly move from discovery to product research and finally to purchase. Alix Earle’s Amazon Store
All brands and retailers can learn from Amazon’s strategy and dedicated influencer Front is found in her TikTok
bio and users can find all
landing pages, that the end-to-end user shopping experience needs to be complete and products (currently available
as seamless as possible. Ensuring that your products are easily discoverable across to shop on Amazon) that she
platforms is the key to becoming the best on the digital shelf. Whether brands want to link mentions in her videos.
their own D2C platforms, or curate social media storefronts, it is essential that social
posts provide an easy path to the products they are calling-out.
https://www.amazon.com/shop/alix_earle
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 11What are beauty
shoppers looking
for in 2023?
Keeping on top of trends and responding quickly
to shopper needs is essential to maintaining
shopper loyalty and trust.
So what are shoppers looking for in 2023?
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 12Green Beauty
Shoppers want sustainable, clean beauty, from ingredients to packaging. What ‘green beauty’ are shoppers looking for?
'Clean beauty' is among one of the most exciting plastic-free becomes a more standard feature in
trends in the beauty space over the past few beauty shopping. However, shoppers are looking
years. Consumers are becoming increasingly for refillable packaging (a 39% increase in the 6
aware of what they put in and on their bodies, and months between August 2022 and January 2023),
Trending in Search
how it can impact their health and well-being. and for products that are ‘eco-friendly.’ Brands are
‘Green beauty’ takes into account the responding quickly to shopper demand for Aug 2022- Jan 2023
environmental impact of the beauty industry and refillable packaging, with various brands from
the health and well-being of both the individual luxury to drug store across fragrance, make-up
and the planet. For example, responsible sourcing and skincare, releasing eco-refillable alternatives + 39% Refillable Packaging
is one of the most important sustainability claims to best-selling products.
to 45% of consumers. There is, however, room to grow in these areas,
Younger consumers in particular are interested in particularly when it comes to retailer involvement. Plastic Free
sustainable products: Gen Z consumers are 1.3 In fact, while 69% of consumers said sustainability
-41%
(but- +151% at Target)
times more likely to want to try has become more important to them over the last
environmentally friendly products. two years, 1 in 4 consumers believe companies
are not making it easy for them to act in this way.
Sales for beauty and personal care products that
Retailers must keep on top of demands to keep
+12% Eco Friendly
have holistic environmental benefits, such as
vegan, cruelty-free, reusable packaging, and up with brand movements to ensure shoppers NIQ Brandbank trending search data from Aug 2022-Jan 2023,
plastic-free are seeing elevated growth rates over don’t turn elsewhere. across all retailers and specific detail from Target. (US Data)
those that just have ‘clean ingredients .’ Failing to shift to meet these growing sustainable
trends means brands and retailers will both be
Overall, it appears as though shopper searches
losing out on shelf space, distribution, and more.
for 'plastic-free' are declining, presumably as
https://nielseniq.com/global/en/insights/analysis/2021/2030-glow-up-the-future-of-clean-beauty/, https://nielseniq.com/global/en/insights/education/2023/sustainable-beauty-2023/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.How many products are calling out their trending ingredients and attributes?
Proven Trends Growing Trends Emerging Trends
Total of On-pack
marketing and
ingredient 85% 72% 37%* 47% 43% N/A N/A N/A N/A N/A
% of Total analysis
Beauty On-pack
and marketing 24% 9% N/A 11% 8% 36% 24% 6% 15% 2%
information only
Personal
Care Free from Free from Botanical Free from Free from Humane Cruelty Vegan Vegan Bio-
Parabens Sulfates extracts phthalates artificial Free Certified** degradable
fragrance
NIQ Brandbank Data for % of Total Beauty and Personal Care products that feature these attributes w ithin on-pack ingredient analysis and on-pack marketing information, *Ingredient analysis only **on-pack certification
NIQ Beauty data indicates that Green Beauty According to NIQ data, ‘Paraben-Free’ is an in- Attribute Trends
attributes are on the rise, but what percentage demand trend, and it appears that companies We’ve seen, and data from NIQ reflects,
of products are labelling the attributes that could be doing more to ensure this is called-out vegan, cruelty free, and humane product
matter to shoppers? where it exists. attributes are an emerging trend. NIQ
Ingredient Trends This gap can also be seen in other trending Brandbank data indicates that only 6% of
NIQ Brandbank's analysis of on-pack ‘free-from’ ingredient attributes, like Sulfates, beauty products were vegan certified, a total of
marketing information for over 100k products Phthalates, artificial fragrances and more. The 6074 out of over 100k products. Similarly only
found that currently, 85% of the products good news is that while on-pack space may be 24% of products claimed to be Cruelty Free.
analyzed were ‘free from parabens’ when minimal, the product description pages provide There is certainly room for more products to
looking at ingredient data, however only 24% brands with more space to effectively call-out meet shopper demand for vegan, cruelty-free,
of the total products actually called-out being trending attributes and meet shopper needs. and humane products
paraben-free on their packaging.
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 14Trending search across the beauty industry
Sephora Ulta Kroger Target
For Fine or
For Fine or For Fine or
+198% Thinning Hair -688% Dry Spray +302% +299%
Hair and Thinning Hair Thinning Hair
Scalp
Health Promote Hair Promotes hair
Scalp Heath +193% -39% Scalp Health N/A +48%
Growth growth
Metallic Sparkles/ Metallic Metallic
+203% +31% N/A +178%
Sparkly Appearance Sparkly Appearance appearance
Make-up
Looks Metallic Glittery
Illuminating +626% +16% Illuminating N/A +18%
Appearance Appearance
Hyaluronic Hyaluronic Acid Hyaluronic
Clinical +350% -2% N/A Hyaluronic acid +467%
Acid Acid
ingredients
-------- Glycolic Acid +1952% Glycolic Acid +146% Tea Tree Oil +151% Glycolic Acid +603%
Natural
Ingredient
s Niacinamide Rose Niacinamide
Niacinamide +174% -10% +151% +357%
Ingredients
Data Collected from NIQ Brandbank Analysis of Search terms related to NIQ Beauty 2023 Trend Prediction across Retailers Sephora, Ulta, Target and Kroger Betw een November 2022- January 2023
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 15What are the differences across retailers? Top Searches by Retailer
As a company that helps retailers and brands across • Shoppers on Kroger.com appear to be searching for
the e-commerce space, we are interested in the different products, using general search-terms that
differences between shopper needs across retail types. don’t involve complex chemical ingredients.
We were able to see what shoppers were looking for at • M etallic and illuminating make-up products trended
different retailers by exploring search terms related to across Ulta, Sephora, and Target, with Sephora Glycolic Acid +1952%
NIQ Beauty predicted trends for 2023. presenting the biggest trend in these terms.
For this deep-dive we explored NIQ Brandbank data for • Searches for products for fine and thinning hair
Sephora, Ulta, Target, and Kroger in the United States. hugely decreased on Ulta.com between November
We chose Sephora and Ulta as two omnichannel 2022 and January 2023 (688%), but grew massively
beauty-specific retailers, and Target and Kroger as on Target.com, increasing 299% in the same period.
general/ grocery specific retailers that offer varying Glycolic Acid +146%
degrees of online beauty aisles.
What did we find? What does this all mean?
Products that appear to be losing popularity on Sephora Brands need to make sure their product data and
and Ulta's websites remain popular searches on Target information is adapted for different sectors of shoppers
and Kroger's. For example, when exploring ‘dry spray’ at different retail spaces. Emphasising chemical and
as a key word search, we found that searches scientific attributes will work well in beauty-specific Glycolic Acid +603%
decreased on Sephora by 5%, but searches increased retailers like Ulta and Sephora, while more
by 302% on Kroger's site. general terms for the same attributes will perform better
at retailers like Target and Kroger.
• The most popular search term across Sephora,
Target, and Ulta was 'Glycolic Acid' — searches for
products with this attribute increased 1952% at
Sephora alone. Dry Spray +302%
Data Collected from NIQ Brandbank Analysis of Search terms across Retailers Sephora, Ulta, Target and Kroger Betw een November 2022- January 2023
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.Social Media: What’s trending right now?
The #CleanGirl aesthetic of 2022 is over, make way for the #Vanillagirl
In 2022, The ‘Clean Girl Aesthetic’ took the social media-sphere by
storm. A make-up, skin-care, hair, and lifestyle look that celebrates the
stripping back of beauty products and the celebration of the minimal,
the hashtag #CleanGirl grew to over 2.5 billion views on TikTok.
The clean girl look took over the beauty community on the TikTok and
influenced shopper trends in real life.
But there's a new ‘it-girl’ trend on the rise: The #Vanillagirl. With over
635.2M views under the hashtag, the Vanilla Girl trend is influencing
beauty shoppers around the globe.
#VanillaGirl
635.2M TikTok views
The Vanilla Girl is marked by a few characteristics: she’s cozy, 'clean,’
and into neutral tones. But what features make a Vanilla Girl, and what
impact has this new it-girl aesthetic had on trending products? To
answer those questions, we’ve created a Vanilla Girl profile …
https://www.tiktok.com/search?q=vanilla%20girl&t=1679048128180 https://www.buzzfeednews.com/article/stephaniemcneal/vanilla-girl-aesthetic-tiktok
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 17Profiling the ‘Vanilla Girl’ A dive into ‘Vanilla’ Search
What products and styles make a #VanillaGirl? Investigating our ‘Vanilla Girl’ search terms for over 100k products in
the NIQ Brandbank product data library, we found this number of
We analyzed the top results returned on a search for #VanillaGirl on products with on-pack data information returning the search:
TikTok and compiled the topics and product types that appeared
across the Vanilla Girl discussion:
• Eyebrow gel / pencils / • Slick/Sleek hair
products • Hybrid skin-care (tinted
• Glossy skin moisturiser, serum +
• Make-up sticks (Contour, moisturiser)
blush, highlighter) • Sensitive skin chemicals
Contour sticks 23 Acne Patches/Pimple Patches 45
• White Eyeliner • 360 skin care- supplements
Slick Hair 26
• Lip oils for your skin- outside in
• Neutral colours (taupe and beauty
toffee) • Pimple/Acne patches
• Faux freckles
The Vanilla Girl is just the next in an endless stream of trends on
social media, and demand for products can increase overnight if the
right influencer endorses them. It is essential to ensure that your entire
product receives the same consistency of product information, data
and attribution call-outs to make sure they are ready to meet shopper Lip Oil 181
Faux Freckles 5
demand as soon as its raised. White Eyeliner 41
Terms found from analysing the first 24 Videos on Tik Tok under the search #Vanilla Girl Data from NIQ Brandbank, searches for products with on-pack descriptions that match key w ord search in library of 100k
products
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 18Beauty shoppers want transparency and honesty
Shoppers want to know what they are claims and call-outs they are making
spending their money on, and in a about their products, as it’s clear that
climate of cost-consciousness, shoppers aren’t afraid to detail their
shoppers don’t have money to waste negative opinions and experiences
on products that are inaccurately with products.
75%
labelled or described online. How can brands become more
Transparency is vital to forming transparent in their goals?
lasting relationships with shoppers • Understand your product
and curating brand trust and loyalty. information and measure against
In fact, over 90% of shoppers say competitors to ensure your of shoppers are likely to switch to
transparency by a brand is important products aren’t missing vital a brand that provides more
to their purchase decisions, and 75% attributes and information
of shoppers are likely to switch to a product information than what
brand that provides more product • Keep up with shopper demand. appears on the physical label
information than what appears on the Shopper needs change rapidly,
physical label. keeping an eye on trends and
making sure your brand can
An emerging TikTok trend is ‘de- meet shopper needs is essential in
influencing,’ whereby users and 2023
‘influencers’ are sharing products
they’ve been influenced to buy that • Communicate your product data
aren’t worth the hype after all. This is visually and make sure it is
increasing in popularity as shoppers engaging to connect with shoppers
continue to feel economic strain. It's so they recognize you are meeting
vital that brands are living up to the their needs.
Source: https://emarsys.com/learn/blog/why-brand-transparency-is-essential-to-driving-customer-loyalty-in-2021/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 19‘The Dupe’ Case Study
‘Dupes’ are trending on TikTok, but what exactly is a dupe and what does it mean for brands across the beauty industry?
The idea of a ‘dupe’ product has been around highly popular branded products. If a product contains the ingredients and
for a while amongst influencers and in internet attributes that a shopper is looking for, at half of
The main power of a dupe product is its
culture. In the current cost-conscious climate, the price-tag, it's likely your product would be
affordability compared to its ‘real’ counterpart,
where 39% of shoppers are in a worse financial picked, but only if it appeared in a shopper
but also its ability to replicate the same
position than last year, ‘dupes’ are an attractive search.
experience and finish. Often these ‘dupe’
alternative to expensive luxury beauty items.
products contain the same ingredients or Taking stock of inventory, and keeping on top of
What is a dupe? product attributes, so it's essential these are trends will help brands to alter their product
communicated and labelled effectively so that description pages to ensure they are
In this instance, dupe doesn’t mean a fool, but
they return in a shopper’s initial search. performing best in SEO.
instead is a shortened version of the word
‘duplicate’ meaning a product that offers the The ‘dupe’ gives opportunities to affordable No matter the price-point, products that perform
same quality/finish/feel as that of a luxury high- brands, which is a win for brands and well in organic search and meet the needs of
priced and sought-after item. The hashtag shoppers, especially during a time of financial shoppers are those with up-to-date, accurate
#Dupe has 2.4B views on TikTok and is filled constraint like the cost-of-living crisis. product information and data on their product
with videos from content creators comparing description pages.
What do brands need to do to maximise
high-end luxury items to more budget friendly
their dupe qualities? Keep reading to discover how to curate high-
dupes.
performing beauty product pages.
Brands need to maximize their ‘dupe’ qualities
There are even dedicated retail outlet spaces
and focus on those attributes that are similar to
‘#Dupe’
for beauty product dupes that specalize in
those higher-end products that shoppers are
proving shoppers with cheaper alternatives to
looking for.
2.4B views on TikTok
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.How to meet
shopper needs on
the product page
How to translate trends onto your
product pages to meet shopper needs
and provide a complete shopper
experience.
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 21What makes a beauty product different?
Beauty products are restrained by the same blockers as all online
products but there are several key differences that mean the demands
from a beauty shopper might be a bit bigger than other categories.
Product pages allow brands to delve deeper into their product
attributes and communicate more information that can inform a
shopper decision than on-pack information. In fact, 23% of online
beauty & personal care shoppers say detailed product information
drives them to shop online.
But what do they need?
Beauty shoppers need a more visual, interactive and personal
shopping experience than other categories online, and the way
forward is ensuring your product description pages are as engaging
and up to date as possible. If you don't provide it, another brand will ,
so don’t miss out on those vital online shoppers by not including
enough product content.
Let’s explore the beauty Product Description Page.
Source: NielsenIQ Omnishopping Fundamentals, September 2021
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 22The Data U.S. Digital Depth Analysis findings
What data and information do you need to perform well for
SEO? According to an NIQ and NIQ Brandbank analysis of the top 40
Good product description pages (PDPS) start with good product data retailers in the U.S, there are a lot of missed dollars (sales) from
missing data. A simple mistake like not calling out specific attributes
and inormation. The foundation of a successful, high-converting
can lead to millions of missed sales:
product description page is accurate and complete product data and
information.
These elements are also the cornerstones of effective SEO. When a Personal Care Average % Annual Sales Average % Sales
shopper is starting their search, on a search engine or within a retailer Attribute of Products Missed Dollars Growth
Missing (1 Year)
site, having the right data to match their needs immediately will help
your products rank higher on product landing pages. Natural / Artificial
0.0% $2.8B $0.0B 6.2%
Free
Keeping product information accurate and transparent is important, as
Paraben Free 71.2% $8.2B $5.9B 11.3%
research suggests 50%of shoppers have returned an item bought
online due to inaccurate product descriptions. Fragrance Free 25.6% $3.7B $938M 11.9%
How to keep on top of fast-moving trends in 2023 Sulfate Free 81.2% $3.3B $2.7B 9.8%
Optimizing your product pages with up-to-date and accurate product
Vegan 64.1% $2.8B $1.8B 18.5%
data for your entire product cataloge is the best place to start.
When attributes go viral, you’ll already have your pages optimized to Cruelty Free 22.4% $6.3B $1.4B 18.9%
return keyword searches and convert potential shoppers the quickest.
Sensitive Skin 0.0% $1.6B $0.0 1.9%
Your data needs to answer shopper questions before they are even
Oil Free 87.6% $1.4B $1.2B 0.2%
asking them, letting them know the details of ingredients, free-froms,
sustainability information and more. Personal Care attributes that w ere present across 5 or more retailers, NIQ Digital Depth Analysis 2022 :
https://nielseniq.com/global/en/insights/report/2022/the-digital-depth-analysis-the-e-commerce-experience-audit/,
Sources: https://www.retailtouchpoints.com/topics/customer-experience/accurate-product-content-influences-87-of-shopper-decisionhttps://beeketing.com/blog/optimize-product-description/s
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.What do shoppers want to see when purchasing their beauty products?
Beauty shoppers need to SEE the product inside and out.
We know that shoppers are more likely to add a product to their For skincare beauty items, seeing a side by side of the potential before
online cart if the pages features more content. In fact, product pages and after results of the product are a no-brainer to inform shoppers of
with 1 image see a 5.3% add to basket rate, while those with 5 images what to expect from your item. But be careful. As we’ve seen earlier in
increase to 18.9% add to basket rate from the simple addition of more this report, shoppers want honesty from their beauty brands, they don’t
images. want unfounded claims and retouched images. So be purposeful in your
But, unlike other categories, adding more images is essential for selling image selection.
a beauty product online. A simple pack-shot of a mascara
communicates nothing to the 2023 shopper, they need to see the shape
of the wand, the colour of the product, and before and after shots to
know how the product affects them.
Beauty products like make-up, hair dyes, and skincare that come in
1 image
specific colors, skin tones, shades, textures, finishes, formulas and
more, need to be seen by shoppers both in the packaging and in
practice, whether that is in static images or in interactive video content.
5.3% 5 images
Add to cart rate
Adding more images, of more examples of what a certain color will look
like on a different skin tone, will allow shoppers to identify with the 18.9%
Add to cart
content they are presented with, all aiding their decision of whether or rate
not to purchase from your brand.
NIQ Brandbank, Sainsbury’s Connect Case-Study, 2019
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.Diversity, demonstration and detail Product comparison tables
Shoppers need to see products on people that look like them. We’ve already highlighted that one of the main barriers to shopping
Considering different skin colors, textures and a shade of blush for online is the inability to pick up and physically examine products. As a
example will look different depending on the pigments in people’s skin, result of this, shoppers are often unable to easily compare similar
whether they have pale white, olive undertones or darker skin tones, it products within the online product page itself, often having to open
is important for brands to demonstrate their products on a range of multiple tabs of the same retailer website, or even turn to other
models. information spots like Google or social media platforms. In the store
Similarly, demonstration of product before and after images, especially they can simply pick up all products they wish to compare and
for claims like ‘anti-aging,’ ‘skin-smoothing,’ and ‘pimple-treatment’ physically examine the differences in shade, finish, quality, brand etc.
help communicate the effects of the product beyond simply adding This is where comparison tables featured directly on the PDP can
more words and packaging shots. enhance the shopper experience. Including a comparison between
Overall, the simplest solution is adding more images to a product products similar to that which the shopper is currently viewing,
page. More images, more videos and more interactive comparison streamlines their shopping experience, and most importantly, removes
tables are a simple way brands can communicate their products the need to click away from the product page and onto a different site
effectively with shoppers. entirely.
Image sources: Fenty.com, https://www.bohttps://www.boots.com/nars-liquid-blush---orgasm-10286837ots.com/nars-liquid-blush---orgasm-10286837, Sephora.com
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 25Product Videos
Product videos are engaging and interactive
pieces of visual content that brands can add to
embellish the product page. Product videos can
range from marketing edits, television
commercials, explanation videos, expert
tutorials, user-generated video content, and
more.
Studies have also shown that 50% of
consumers want to see a video about a product
they’re interested in before deciding to purchase
it. With that in mind, it is worth utilizing video
content that may have been produced for across
a brand’s channels like social media or other
advertising spaces.
Research from SEO experts at BrightEdge also
indicates that product pages with video perform
better in Google searches — a page with a
video is 53x more likely to be featured on the
first page of search.
Videos are shopper and SEO friendly and are a
reliable way for beaty brands to engage their https://www.sephora.com/product/paulas-choice-pro-collagen-multi-peptide-booster-P504433?icid2=homepage_slideshow _skincare_brand-sku-
shoppers in 2023. launch_paulaschoicepeptide_broadcast_us_rwd_banner_030823, https://www.brightedge.com/blog/how -to-use-videos-to-generate-seo-results
https://nielseniq.com/global/en/insights/education/2022/enhanced-product-content-engages-e-commerce-customers-2/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 26Highlighting attributes visually
There are a few key ways that brands can identify and call-out their
beauty product attributes for an easy shopping experience within the
PDP. We already discussed the benefits of a visual PDP for the
shopper — here are our recommendations for the top visual elements
that a high-converting beauty product description page should
feature.
An NIQ study from 2022 highlighted that only 35% of retailers in
the US currently feature custom attribution on their websites.
Firstly, on retailer sites that contain the functionality, using consistent
and recognizable iconography across PDP pages is an easy way to
improve the shopper experience. Shoppers can instantly recognize if a
product fits their individual needs with icons that represent specific,
popular attributes, such as ‘vegan’ ‘cruelty-free’ and more.
Two leading examples we’ve come across in researching this report
that are effective are US Retailer Target’s ‘At a glance’ Wellness
Labels labelling system, and global beauty retailer Sephora’s
‘Highlight’ section.
https://nielseniq.com/global/en/insights/report/2022/the-digital-depth-analysis-the-e-commerce-experience-audit/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 27Visual product attribution on Target.com (US)
As a multi-category retailer, Target
features a range of Wellness Icons
in its website glossary, and
currently features 15 different
Wellness Icons across the beauty
space including ‘vegan,’ ‘paraben-
free’ ‘sulphate-free’ and more.
We’ve already seen that these
attributes are trending search
terms across the United States,
and Target has made it simple for
shoppers to find them from product
to product.
Target.com (U.S)
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 28Visual attributes on Sephora.com (US)
On Sephora.com (US version), attribute-related icons are tailored for a
beauty experience, moving beyond callouts for chemical ingredients
and planet/vegan-friendly attributes, and noting the qualities, finishes
and effects of products. For example, a shopper can easily identify if a
product is good for acne or blemishes by noting a bright red pimple
icon.
Furthermore, if a shopper is looking for a shimmer finish product,
Sephora has created a highlight icon that lets a shopper know
instantly if the finish of the makeup is what they're looking for.
Below-the-fold rich media
The second type of visual communication is rich media imagery and
visual product call outs on tiles and banners.
These can take the form of carousel images that support the product
feature image, or below-the-fold rich media content. Both options allow
brands to add more product imagery with specific attribute call-outs for
shoppers to easily find the elements they are searching for.
Interactive content instantly gives your audience useful, relevant and
important product information in a way that is easy to consume. By
making sure your product pages contain interactive content, you are co-
creating a positive user experience with your shoppers, helping them
affiliate with the brand and create a strong relationship.
Images Sourced from Sephora.com (USA), Specific product page - https://www.sephora.com/product/glossier-ultralip-high-shine-lipstick-with-hyaluronic-acid-P504823?icid2=products%20grid:p504823:product, NIQ Brand Internal CGI Mock-ups
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 29Time to get personal
71% of beauty shoppers are frustrated
when an experience is not
personalized… it's time to get personal
on your product pages.
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 30Recommended products
Personalized shopping experiences are vital exploring and another provides alternatives.
for the 2023 shopper. In fact, 71% of Both lead the shopper to more PDPs and
shoppers are frustrated when a shopping products, and both narrow their selections
experience is not personalized. and help to remove the possibility of being
overwhelmed from the thousands of products
Creating seamless shopping experiences
on the website.
between product description pages is a
simple as adding product recommendations This is a simple, but effective implementation
that link shoppers to new products that match on retailer websites to prevent shoppers
their criteria, or compliment the products they becoming overwhelmed with large product
are exploring. selections and an over-saturation of choice.
On Ulta.com, a US based omnichannel Brands need to make their products the most
beauty retailer, shoppers are presented with complete they can be to end up in the right
two related product sections, ‘Our Picks For related product sections. To start with,
You’ and another ‘Similar Items For You’ ensuring that product information is complete
section that present the shopper with two and up to date makes sure it is more likely to
levels of personalized recommendations. One appear in the right spaces.
compliments the product they are currently
Sources: https://youengage.me/blog/how -beauty-brands-personalize-user-experience-using-quizzes/, Ulta.com
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 31User-generated content
One of the simplest and most This showcases the products on a
effective ways to connect with a variety of different users and
shopper is by implementing user- makes the shopping experience
generated product content. This feel more personalized. Shoppers
can include images, videos, can click on a photo to find the
reviews and more. highlighted products in the user
Adding user reviews to the page content. It also highlights that
can help influence shopper enriched product experiences can
opinions and trust between take place beyond the product
shoppers and brands. The page, spreading into the landing
National Library of Medicine found and home pages.
that overall, user reviews help Afterall, when initially searching
shoppers to increase emotional for a category, a shopper will be
trust and increase their confidence taken to these pages — adding in
toward purchasing the product. rich media, in particular these
When exploring product landing product demonstration images,
pages to find best-in-class are a vital step in product
examples for this report, we found discovery. These user-generated
that Target.com has user- selfies are sourced from across
generated content nailed — user- social media platforms, tying in
generated images sit alongside the omnichannel experience for
their product images on make-up shoppers who see these finished
landing pages. looks on their social feeds and are
looking to recreate them.
Images Sourced from Target.com
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 32Quizzes and custom content Function of Beauty
A personalized product experience case-study
Interactive content is the perfect way to keep shoppers engaged and
provide tailored shopping experiences. Quizzes are simple to Function of Beauty is a direct-to-consumer beauty brand that takes
implement and effective in keeping shopper attention which is why personalization one step further than the rest. Shoppers are presented
65% of significant cosmetics retailers offer interactive quizzes.* with a quiz that asks them about their hair texture and hair goals, and
With an overwhelming amount of products available to shoppers in rather than recommending products that match the criteria, Function
2023, quizzes that consider the individual shopper’s specific product of Beauty make a custom hair product that aligns with exactly what
needs help them to filter down to the products the need and want, the shopper is looking for. Shoppers can pick from a range of hair
simplifying the overall shopper experience. goals including, frizz-free, shiny, and more — they can even select
whether their product is free of fragrance, silicon, and chemicals.
Global online beauty retailer FeelUnique.com offers shoppers quizzes
to match them with specific products, for example a ‘Skin Quiz’ that The bottle itself is then personalized with the shopper’s name, a
allows shoppers to define their skin type as well as their skin goals, final bespoke touch that takes personalization to the next level.
and attribute requirements to match shoppers with products that meet
their needs.
Sources: *https://youengage.me/blog/how -beauty-brands-personalize-user-experience-using-quizzes/ https://www.functionofbeauty.com/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 33Technology in the
Beauty Sphere
The Future of Personalization
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 34AI in the beauty-sphere
Stuck at home with shops shut, many shoppers financial loss and even product waste, perhaps
took to online shopping for their beauty products in detering them from purchasing products from
the early 2020s. 38% of beauty sales in 2022 particular brands in the future.
continued to come from online sales. Even when shops have begun to re-open, the
Much like every other product bought online, the demand for sanitization during the pandemic era
shopper misses out on one valuable shopping has continued for many shoppers, meaning they
experience: the ability to physically hold the item. don’t want to use a product sample that has been
With beauty products, particularly make-up, the touched by many other shoppers.
ability to use samples and test products on the Enter the beauty AI/VR experience:
store floor is invaluable to the shopper experience, Global beauty retailer Sephora offers a virtual artist
especially for items that require color-matching or app, that enables shoppers to try products before
come in a variety of shades and colors. Some they buy them by either using a live AI filter, or
shoppers even rely on instore experts to undertake uploading a photo to the app. A study released by
the task of color-matching for them, or simply YouCam Makeup, an AI make-up app provider,
recommending or instructing shoppers how to use a shows that users were 1.6x more likely to buy
product. items after using a virtual try-on and those who
With the pandemic and shop closures, these did spent 2.7x more than those who didn’t use
experts were unavailable, and shoppers lacked the the app.
sample items needed for completing their journey to Mayple notes that 61% of shoppers prefer to
purchase. shop with retailers who offer these AR and VR
With many beauty items unable to be returned once experiences, demonstrating the demand for them is
a hygiene seal is broken, the risk to shoppers high amongst beauty shoppers.
purchasing the wrong shade for their skin leads to
https://drugstorenews.com/beauty/data-shows-impact-virtual-try-among-beauty-shoppers-purchases, , Sephora AI app shot: https://www.digitalcommerce360.com/2017/03/14/sephora-equips-virtual-artist-eye-shadow-skills/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 35Beauty in the Metaverse
Beauty has taken even more steps physically hold or test a product.
beyond the physical, entering into Creating a digital store is another
the fully digital world of the way to take the shopper on an
Metaverse. Beauty industry giants engaging journey.
like YSL, Estee Lauder, Gucci, and Some brands have taken steps
more have already emersed toward creating digital storefronts,
themselves full into the virtual for example Estee Lauder who
reality shopping space. have entered the space for their
Powerhouses like Rihanna’s Fenty brand Too Faced, creating a 360-
brands have also reportedly filed degree immersive garden space
for trademarks connecting them to filled with their products for
the Metaverse. shoppers to virtually discover and
Why would beauty brands want to walk around.
enter this virtual space, and what The Metaverse and VR shopping is
are the opportunities it offers? turning shopping into an experience
for a shopper to fully immerse
themselves in, rather than just a
Creating a shopping space step to purchase. A virtual reality
beyond the webpage: shopping space encourages the
We’ve already discussed the shopper to stay longer and explore
importance of AI and VR in online the products more in depth.
shopping, and the solutions it offers
to a virtual shoppers’ inability to
https://internetretailing.net/strategy-and-innovation/estee-lauder-shifts-to-v-commerce-as-it-embraces-the-metaverse-for-its-too-faced-arm-24271/
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 36Online consultations, virtual try-ons and virtual e-commerce
Charlotte Tilbury case-study
UK-based beauty brand Charlotte Tilbury is engaging fully with technology and
the next generation of shopper personalization. Charlotte Tilbury, which is
available to shop across the omnichannel, has fully embraced AI, virtual reality
and enhanced the online experiences.
Experimental VR e-commerce platform Obsess has allowed Charlotte Tilbury to
explore virtual store-fronts which it named its Pillow Talk Party Virtual Beauty
Wonderland, released in time for Christmas 2020. Replacing the in-store
shopping experience than many missed due to isolation measures across the
globe, the brand harnessed the pioneering technology to keep shoppers engaged
in a new shopping experience.
Charlotte Tilbury also offers free 1-1 consultant appointments via video chat for
shoppers who need extra help when making their purchases. Shoppers can
choose from a range of consultation types including help with foundation, gifting
experts to help those looking to buy a gift for someone and the option to ‘ask
anything’ for those that have questions. The brand also offers paid sessions on
their D2C site if shoppers want extra tutorials or help perfecting their make-up
skills.
Charlotte Tilbury’s ‘ask anything’ sessions currently has an average 5-star rating
from 368 shoppers, and the ‘foundation experts’ sessions also have an average
5-star rating from 434 shoppers, indicating the service is popular amongst those it
seeks to target. Publicly displaying reviews is a great way to encourage other
shoppers to utilize the tool and encourages them to pursue their own
personalized experience.
https://www.charlottetilbury.com/uk/virtual-consultations/book/free?store=uk&type=free
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.Conclusion
What does the online beauty landscape look like in 2023?
The 2023 beauty shopper is looking for a more personalized, green
and clean shopping experience.
It is clear that there's room to grow for both beauty brands and
retailers to support shopper needs in 2023. NIQ
Brandbank's investigation found billions of dollars in missed sales
where brands simply hadn’t called out their product attributes
effectively, a mistake that can now be easily avoided for future
success.
E-commerce sales made up a total 38% of beauty sales in 2022 —
brands and retailers must ensure they are creating highly-engaging,
interactive, and forward-thinking product description
pages to encourage shopper engagement.
As we delve deeper into a cost-of-living crisis around the world,
shoppers are now more cost-conscious, and want more transparency
from the brands they are considering purchasing from. NIQ data
indicates that 40% of beauty consumers would stop buying
cosmetics if incomes are challenged this year, making it more vital
than ever to communicate product attributes effectively.
Sustainability remains near the top of shopper priorities, and brands
that fail to make positive moves towards sustainability across their
product cataloge will find themselves losing out on the digital shelf.
NIQ, CEW, State of the Beauty Industry Report, 2023
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 38Your next steps
Stay on top of trends Get visual Personalize the shopper experience
Beauty trends and shopper demands are Beauty shoppers need to see the products they Providing the best-in-class shopper
changing rapidly and brands and retailers want to buy. Beauty shoppers need more experience for your shoppers means getting
need to remain proactive and on top of trends. visuals than other categories when shopping personal.
This means keeping an eye on social media online.
trends, trending searches and popular product Taking measures that provide a personalized
The online shopping experience removes the shopper experiences can increase shopper
attributes. ability to pick up and swatch a color, so the engagement, improve loyalty and convert
Ensure you have the foundation of a best-in- more product images, videos, GIFs available to sales.
class product page built by starting with your the online beauty shopper, the better.
data and building from there.
© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 39Who is NIQ Brandbank? NIQ Brandbank is the leading provider of digital product content solutions enabling more than 52,000+ brands and 700+ retailers and wholesalers across the globe in over 39 countries to deliver the best shopping experience by giving them the ability to capture and share rich digital product content on all channels seamlessly. NIQ Brandbank’s end-to-end solutions connect shoppers to the most up to date and relevant digital product content making consumer goods more discoverable and engaging. For more information please visit: https://NIQ.com/global/en/landing-page/brandbank/ © 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed.
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