Consumer inclination towards high efficiency skin care providing opportunities for niche brands in highly competitive market
A decade ago they were stated as ‘niche’, but today skin care brands have been catapulted into the mainstream competitive market, thanks to the popularity of skin care products and ‘skin regime’. Brands in the skin care space are benefiting from a growing consumer desire to have a healthier and youthful skin. The time and cost involved in manufacturing a direct-to-consumer brand and scale the business accordingly has been so drastically reduced that it has had a democratizing effect on just about every industry. These brands are keen to shake off the tag of exclusivity once associated with the beauty sector in favour of an accessible, inclusive approach firmly focused on the highly competitive mass market.
The growth strategy pursued by these skincare brands is motivated by the thinking of consumers. They have a more targeted consumer circle and with the rising awareness of skin care at an early age this sector is recording growth at a significant rate by producing highly efficient and effective products. The introduction of accessible e-commerce platform and affordable advertising with digital media platforms levelled the playing field for the niche brands with opportunities for growth everywhere, and the level of investment comparatively reduced with far more traction and much less risk involved in the business. With the e commerce platforms there is minimal investment and without hiring a sales team, a company can grow online through a network of cult-like skin care products with rigorous marketing through digital platforms.
Niche brands sell to a small base of buyers who are “unusually loyal” while the essentially failing brands have a small number of infrequent buyers partly due to inefficient products or lack of marketing, while brands with a higher market share have more buyers who buy them more often giving them a rise in market. As a result, the niche brands are more likely to grow by “sophisticated mass marketing”, increasing their market penetration – rather than targeting a tight segment of loyal customers.
The approach is evident in Innisfree, the Korean all-natural skin care products brand from South Korea, with growing number of outpost in India the brand aims to introduce world-class skin care to its Indian consumers providing a highly enhancing brand experience that overcomes the limits of time and space. The brand is focused on segments within its fold including skincare, cosmetics, hair care, and fragrance, launched just 2 years ago the brand is riding on overwhelming response from both online and offline channels of sale, investing more in and expanding aggressively to increase the brand awareness in the country, which puts the company on track to generate revenue from unexplored territories.
Niche brands are on the growing at a rapid pace because of its access to markets through its established sales networks and marketing strategies which will help ensure their products go off shelf giving them an upper hand in the market place across the globe.
A willingness to diversify their product lines is helping the skin care brands maintain profits in the competitive market, extending the proposition has also been key to the sustained success with wider product range the brand stay relevant throughout the year to reach the mass market. In the start-up world, a number of brands are seeking democratise wellbeing by making skin care products accessible to everyone aiming to offer a credible, highly efficient with in budget alternative to the mainstream market.
Having continuous collections with new product coming through quarterly or half yearly giving a quick turnaround is crucial in today’s market where consumers shop regularly. It will also help and engage customers throughout the year. Niche brands may have launched with a very specific target market in mind, as consumers’ appetite for healthy skin rises, there is opportunity for these brands to grow too, if they can tap the means to fill in the needs to reach the masses. If you have an idea or product for a niche brand that serves to an underserved market, now’s the time to take action.