The global beauty industry is forecasted to reach $463.5 billion by the year 2027. This includes an annual growth rate of 5.3% from now until then.
These statistics point to a flourishing market that’s only going to grow. So if you’ve been looking to start your beauty brand, now is the perfect time to start.
But you can’t start a beauty brand without understanding the beauty market for your niche first. You need to know who your customers are, what they want, and how your product can fill any gaps in the market.
So how do you get started with beauty market research? Keep reading to find out.
Find a Clear Opportunity
No matter how good your product is, if there’s no opportunity, your product won’t sell.
For example, let’s say you have an idea for lipstick. But given how saturated the lipstick market is, how do you know your product will stand out to consumers?
This is where learning how to identify business opportunities comes in. This could include looking at whether there’s a problem in your chosen category that doesn’t yet have a solution.
Staying with our lipstick example, maybe there’s no vegan lipstick out there that is long-wearing but doesn’t dry out the lips. This is where you can start to hone in on not only what kind of product you want to make, but what’s actually needed in the market.
Does Your Product Idea Fit With Your Brand?
Before you spend all this time conducting research, you need to think about whether your product idea fits your brand’s values and mission.
Does it fit with the price point you sell your products at? Does it fit with your expertise as a company?
If you’re a company that only sells lipsticks, it would be odd for you to suddenly start selling mascara. So if you want to expand into other types of makeup, you need to think about how your new brand messaging will entice your customers to buy.
If you’re not already a brand that customers are likely to buy mascara from, then you need to figure out how you’re going to get the attention of your customers.
And if you’re a new brand, get clear on what you’d like to be known for and what kinds of products you’d like to sell.
Start With Primary Market Research
For beauty, primary market research means that you talk to your customers directly.
Some examples of where you could conduct primary market research include:
- Interviewing potential customers
- Running focus groups
- Asking users to test your products
- Giving online surveys to new or current customers
If you haven’t started your brand yet, you’ll have to start by talking with potential customers.
This is why you need to have at least a general idea of your product and how it’s different from everything else on the market before you start with your research.
Know Your Audience
Once you have a general idea of who your audience is, you need to sub-divide it into smaller, more precise groups. This is called market segmentation.
In market segmentation, you divide each segment based on a set of shared characteristics. So, if your product idea is face cream, you can segment your audience according to age, skin type, and/or skin concern.
If you’re unsure of how to do this on your own, reputable beauty market research companies can help you.
Next Up: Secondary Market Research
When you’ve spoken to your current or potential customers, it’s time to start looking at some secondary sources.
The main difference between primary market research and secondary market research is that primary market research is focused on helping you understand your target market.
On the other hand, secondary market research includes key data from all other areas, including:
- Your niche
- Your competitors
- The local community (for brick-and-mortar stores)
- The beauty industry as a whole
But instead of asking people face-to-face, secondary market research means that you gather data from reputable, published sources.
These sources include industry reports, beauty magazines, trade shows, statistics websites, and the websites of your competitors.
Define and Assess Your Product
Once you have a good idea of your target market, its gaps, and your customers’ needs, it’s time to revisit your product and get specific.
By this point, you should know what’s happening in current beauty industry marketing and what market gaps you’re filling in. And now that you have this information, you can decide on product details such as color range, packaging, brand visuals, and what’s important for your formula.
This also helps you save money down the road because it helps you avoid expensive re-brands or reformulations. For example, if you are making a vegan brand, you may need certification.
You need to consider this as you create the formula for your cosmetics so you don’t have to pay to have everything reformulated and re-made later on.
Keep an Eye on Trends
A good way to keep an eye on trends is to subscribe to beauty industry news sites or newsletters. You can also watch other, well-known brands in your niche and follow their products and their beauty marketing.
When you look at trends, make sure to look at the big picture. This helps you identify what trends are going to last a long time versus what’s only going to sell for a couple of months.
For example, consumers might currently be avoiding a particular ingredient in skincare. While this trend may be short-term, it points to the larger, longer-lasting trend of clean skincare.
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Beauty Market Research Starts Your Brand the Right Way
It can be one of the best moments of your career when you’re finally holding your product in your hand after months or years of hard work.
But to give your product the best chance of success, you need to put as much effort into beauty market research as you do in creating your product.
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