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

DCF and vIndustry oaluation pverview arameters PPage 61age 61 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 The most effective communication comes from those The winners will thus be the all-line companies that Traditional cosmetics have shown signs of weakness brands that have acknowledged the shift from know how to reach the perfect mix of digital appearing almost in a mature phase especially with consumer to prosumer and have consequently set up community, influencers, brand and point of sales by regard to retail makeup brands with a low price/ a level playing field with the prosumers by focusing linking the online and off-line world. young positioning. Pushing digital has been a on listening to the consumer’s needs. As the Companies have to exploit all the data that the web fundamental driver to relaunch traditional cosmetics. Cluetrain Manifesto states, in beauty “markets are offers, using social media as a way to anticipate For example, meet-and-greet events in which conversations.” However, the opposite is true as well. market trends and to create offers made to measure followers meet their favorite bloggers in point of Listening to the buzz online and creating bonds with for each type of client. This can be achieved only by sales or couponing activities with made-to-measure w bloggers/vloggers/influencers in order to reach a adding new professionals in the company, like a chief promotions online and in the stores have allowed companies to reach this goal. ervie huge audience that would be otherwise hard to reach digital officer or a shopper marketing manager, who v with traditional media not only translated into a know how to combine the know-how deriving from The most effective promos are those that go online, try o strong improvement of online brand reputation, but marketing and IT, from retail and trade marketing as because that they bring new consumers in addition to Indus also allows off-line business opportunities. well as neuroscience applied to consumer behavior. the most loyal consumers of perfumes. The digital So, in such a complex context, how can a beauty The goal for beauty brands in the last years has been world (earned, but also owned and paid) is linked to company remain competitive? There is evidence of to shift younger targets’ behavior, pushing them to the point of sale and to the consumer. This never- how the most successful firms are those who listen to purchase in stores instead of online. ending circle brings benefits to a business that at this the online buzz (listening to comments on products, point is not only digital (anymore). valuation of opportunities of improvement, etc.) and those who meet and interact constantly with bloggers, because in this way, they succeed in transferring all the preferences and opinions that come from social media into the product. Today, the key to success is the relationship with the consumer who has become more demanding and mature, who appreciates hearing the equity story of the brand through multimedia, and who asks for highly innovative products and looks for the ability of cosmetics companies to anticipate his needs. The luxury and cosmetics financial factbook 2015

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