Due to the growing healthy living trend, consumer demand for benefit-driven and health-positioned beauty and cosmetics products has grown. Dermocosmetic brands draw from their pharmaceutical background and technological advances in skin care, their effective formulas match each skin type and issue. These brands position themselves toward prevention over simple functionality which attracts consumers who are seeking multiple benefits. Thus, the dermocosmetics market is booming. Today it’s valued at US$128.7 billion globally, representing 35% of the world beauty and cosmetics market, with a growth rate of 4.8% per year on average.
Digitalisation has disrupted the industry and in order to stay competitive, dermocosmetic brands need to adapt to changing consumer habits and buying preferences, both online and offline. As their distribution circuits are changing, market leaders are continuously moving towards an omnichannel strategy.
To succeed in the industry, we recommend three key steps for dermocosmetic brands.
Provide the path to purchase for omnishoppers
Apart from creating effective products and convincing content to entice consumers, dermocosmetic brands need to drive purchases. Once consumers are ready to engage with your brand, it’s crucial to ensure the purchase process is as quick and simple as possible. For today’s consumers, the shopping journey may include multiple steps and channels. In order to satisfy these so called “omnishoppers”, you need to make sure all your digital touch points drive your potential clients to purchase options. Many brands are already accelerating the path to purchase from their websites. Check out Swaven’s collaboration with Pierre Fabre brands here.
Creating shoppable content on social media, videos and advertisements is equally important. There are currently over 3.5 billion social media users and they are spending almost 2.5 hours on social networks on a daily basis!
In a recent study, 63% of consumers admitted they have clicked on a social media ad, with 33% of those going on to make a direct purchase as a result.
It’s clear there’s a great opportunity here for brands to increase their business via social media. The same goes for display ads and re-targeting campaigns. Swaven’s clients have reached 15 times better customer engagement rates by making their online ad campaigns shoppable.
See below how Filorga drives consumers from its video ads to multiple purchase options online and offline with Swaven’s POP.
Combining online and offline experiences
Dermocosmetic products are sold via a large number of channels. From pharmacies to drugstores, but also in the specialized departments of supermarkets and perfumeries. User preferences are different in terms of online and offline retailers so both need to be considered.
Although online shopping is an increasing trend in this sector, many consumers still prefer to have personal guidance and test products before buying them. For many dermocosmetic brands, e-commerce represents only a very small part of their sales compared to offline. According to Pierre Fabre, conversion in the form of a purchase is 80% in pharmacies compared to 2% in e-commerce!
Don’t forget about your offline channels! Instead, make the most of all your digital channels to drive your audiences to their chosen retailers and points of purchase. This way you can cover all user preferences and generate qualified leads to all your retailers. It will also allow you to get a “full picture” in terms of campaign performances. You can optimise your strategy for each marketing channel, each product and each retail partner.
See below how L’Oréal lets its audiences choose where to buy Saint-Gervais Mont Blanc products.
Measure your brandformance
In a successful omnichannel strategy, all marketing and distribution channels are working towards the same goal, increasing the brand’s business.
To detect best (and worse) performing assets and patterns, brands should embrace the so-called “brandformance” approach. In this approach all branding activities are combined with performance objectives concentrating on business impact and ROI. It allows brands to measure and analyze their activities in quantifiable business terms. To optimize their contents, targeting and investments to boost their business during their peak sales periods and all year round.
Contact the Swaven team to learn more about how to build a successful brandformance strategy for all your digital touch points.