Content thumbnail Seeking sustainable growth - The luxury and cosmetics financial factbook

PPage 60age 60 DCF and valuation pIndustry oaramevervieterws I Points of view from EY’s global sector #digital beauty: how to make a new model an opportunity — the specialists and outside experts challenge of captivating a technological shopper This has implied a considerable change in marketing Therefore, beauty is one of the most active and There have always been more or less efficient ways strategy for cosmetic companies, which have shifted competitive sectors in social media. to raise awareness on the web, but if at the very from product-oriented marketing to consumer- According to some market research, the beginning of digitalization, making noise, no matter oriented marketing. Cosmetic companies have effectiveness of communication and the share of how, was sufficient, today more than ever, the actual decided to pursue this one-way path knowing that the voice of brands on social media is not directly quality of word of mouth is vital to succeed. journey will have some risks but will on the other proportional to the available advertising budget, hand offer incredible opportunities. leaving significant opportunities for low-spender Numbers show that the cosmetics world has been dynamic and proactive brands (earned media vs paid reinterpreted by the digital arena: there are more and owned media). than 15 billion views overall on YouTube on the topic “beauty,” 10 billion of which are focused on makeup. Digital marketing trifecta 1 Every month, there are around 700 million new Earned, owned and paid media views on beauty, which is a 133% increase from 2 2010. This data proves the growing interest for Propel sharing and engagement beauty topics in the social world, an interest that Sharing with paid promotion Advertising (ADS) comes from a larger and more-aware consumer base, • Mentions • Pay per click • Shares • Display ADS receptive to new product launches. • Reposts • Retargeting In the described context, beauty brands control only • Reviews • Paid influencers • Paid content promotion 3% of the 15 billion views and they appear only in Earned Paid • Social media ADS 2.5% of the searches per keyword on YouTube. On media media the other hand, the top 25 beauty bloggers have Leverage owned, earned and 2,600% more comments than beauty brand’s paid media for a comprehensive channels. This means that 97% of the conversations marketing strategy on beauty are controlled by bloggers and haul girls.3 Search engine optimization (SEO) Owned and brand content media drive earned media (sharing) and traffic. Gain more exposure to web Web properties properties with SEO and pay • Website per click (PPC) 1 2013 Data • Mobile site 2 ©2014 Pixability, Inc. • Blog site 3 See note 1 • Social media channels The luxury and cosmetics financial factbook 2015

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