The growth of mergers and acquisitions, innovation, mitigating risk, influencers platforms, the changing consumer mindset, performance marketing, dangerous discounting, surviving in a crowded industry, and more…
Allison Collins, Beauty Financial Editor for WWD, shares her perspective and observations on the current state and possible future of the beauty industry with Karen Moon and Abby Wallach in the MouthMedia Network studios powered by Sennheiser.
In this episode:
- Collins on rapid fire M and A, and the current related climate
- Entrepreneurs have more capital sources than ever, but where are the exits?
- Big companies are looking for to help from small companies to make their business grow, an engine of growth, innovation, and “learning deals”
- Why there is more money for beauty now as beauty tech is hot
- People are looking for things that mitigate risk – crowd funding demonstrates interest
- Determining what’s interesting?
- An influx of various influencer platforms
- Executives leaving and joining or starting small companies
- How it is tough to work nimbly in a big corporation that has lots of rules
- How the Internet and mobile have changed buying behaviors, which means ecommerce retailers need to up their mobile game, and the need for brands to hire experts at these things
- Companies now have full staffs to have an ear to the ground, see what influencers are hot on
- Managing customer views, performance marketing
- The changing roles in companies based on consumer telling companies what they want
- A lot of content on blogs are coming from user comments
- Taking the voice of the people and packaging it up in a way that makes sense
- Is there room for optimism in beauty or is a correction in beauty’s future?
- The potential challenges of more regulation?
- So many brands, so many duplicates
- What is the right size for success and a sustainable model, and does industry fragmentation offer an opportunity?
- Unit economics now vs. looking at an exit
- Running unprofitable businesses in the name of growth
- How brands are not just succeeding with direct to consumer, creating discount floors to generate foot traffic
- Discounting from prestige brands in retailers, what part is a negotiation, and why this brings concern
- Consumer mindset – the consumer has real and specific expectations