The latest statistics show that the beauty industry is worth $532 billion and is rapidly growing the ladder upwards.
Even with this high value, it is important to note that challenges and barriers exist in this industry. The best way to conquer the barriers is to take note of their presence to ‘take the bull by its horn.’
While it is a vast industry, many challenges arise all the time; however, this article will look at the main barriers globally.
Transparency and Traceability
With the growing need for healthy living, the beauty industry’s cosmetic and personal care segment faces a challenge of transparency with its products. Consumers now want to know the ingredients in the different products they are buying. Also, they want to be sure the product will meet its claims in performance.
If a product claims to use palm oil among the ingredients, can the claims be traceable? Is there evidence of palm oil? Also, how sure that the palm oil used will do as the company claims?
Consumers ask these questions, and without valid answers or prove, most products expire on the shelves.
Social and Demographic Impact
The lack of traveling to different destinations and assumptions of different consumer needs poses the main challenge. With the top directors in marketing strategies of the beauty companies traveling their different markets, they stand a better chance of understanding the needs and even different pricing.
As econotimes.com explains, language can also be a barrier in these travels, but if you take it upon yourself to understand your market; you will achieve a stable way of communication. A social value in the different communities, as well as that of stakeholders, is crucial.
To save the environmental impact on beauty products, many companies need to switch to green formulations from renewable sources. As always, green is safe and healthy for the consumer as well.
However, sourcing these products is a challenge as most sources are not reliable or have no enough. Also, introducing green formulations in different products becomes a challenge in the production levels.
Lack of Regulation
Even though there is a ban on products with microbeads, other ingredients still stand a high risk. This is because of the backdoor productions that tend to use ingredients that will eventually be harmful to the consumer’s general health.
There are still stores that sell these products, which work but pose a risk. The consumer wants to see results quickly, hence buying these compromised products that deliver as expected.
Moreover, the rise of counterfeits in many regions is a booming business. Many consumers opt to buy a cheap Mac foundation rather than the original expensive version. Counterfeits are a great challenge for major companies to sell their products. Besides, these are’ secret productions’ that are hard to trace, so they become hard to regulate or ban.
In summary, challenges are everywhere. However, the best approach would be to visit different markets with high and low-profit margins and understand the ground/field level barriers. This will shift the marketing strategies to suit different regions appropriately hence earn more numbers.