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1 Jan

Consumer Fatigue Is Hitting the Beauty Industry, Launchmetrics Study

PARIS ­— Is consumer fatigue beginning to hit the beauty industry?

A latest study by data research and insights company Launchmetrics suggests the reply is “yes” in its latest study, entitled “S1 ’22: Business of Beauty — Top 700 Performers.”

That takes under consideration 741 beauty brands, a complete of $12.5 billion in media impact value, or MIV, and three.1 million placements.

“While beauty is considered a reasonable luxury in a time of economic uncertainty, there was an increasing concern over consumer fatigue within the sector,” Launchmetrics wrote within the study. “Overall consumer engagement across social media has decreased year-over-year.”

Launchmetrics said that while Instagram and YouTube proceed to be the juggernauts in driving reach, they’ve registered a decline of MIV on-year. Conversely, TikTok has been generating MIV growth for a lot of beauty brands, through shorter-format videos.

The sweetness industry is more reliant on influencers than the style industry, especially in China.

“Whereas beauty brands drive a much bigger share of MIV via media and owned channels outside of China, influencers account for nearly all of MIV for brands within the region,” Launchmetrics said.

Share of MIV by voice for January to December 2021.

For beauty in 2021, media lassoed 38 percent of MIV worldwide excluding China, and 15 percent of MIV in China. Influencers grabbed 37 percent of MIV globally outside China, versus 77 percent in China. The breakdown of owned MIV was 17 percent and 4 percent, respectively.

Despite social media’s ongoing strength as beauty’s top channel for driving MIV, Launchmetrics noted overall consumer fatigue across the board.

“While Instagram continues to be the number-one highest MIV-generating platform [with $2.8 billion MIV], its average MIV per placement is far lower in comparison with those of newer platforms, comparable to Douyin, Weibo and TikTok,” wrote Launchmetrics. “Shorter-format video platforms — Douyin, TikTok — not only over index by way of efficiency but additionally drive stronger growth in MIV year-over-year.”

TikTok notched up essentially the most growth, increasing beauty brands’ MIV by 176 percent within the period.

“The era of in-depth tutorials by beauty vloggers has passed,” said Launchmetrics. Longer-format videos, generally of greater than 10 minutes, perform best on YouTube, and lifestyle videos made up lots of the top videos generating the very best MIV. That included Thugesh’s nine-minute-and-44-second video that rung up $816,000 in MIV and Architectural Digest’s 15-minute-and-55-second video that garnered $706,000 in MIV.

On the flip side, the best-performing videos on TikTok are generally shorter than one minute and have celebrities, influencers or entertainment content.

“Three out of the highest five TikTok videos with the very best MIV were published on celebrity handles,” wrote Launchmetrics. “And 4 out of 5 featured a celeb inside the content itself.”

A 20-second video by Kylie Jenner rang up $2.4 million in MIV, while Twenty4Tim’s 58-second spot grabbed $2.2 million in MIV.

Total MIV made by YouTube decreased 21 percent within the July 2021 to June 2022 period versus the July 2020 to June 2021 period.

Whereas star influencers resonate the perfect on China’s social platforms, Launchmetrics said that key to success on western platforms is diversified Key Opinion Leaders.  

In the primary half of 2022, influencers generated greater than $5.6 billion in MIV, making them essentially the most effective voice in the sweetness industry.

“Nevertheless, there’s no one-size-fits-all solution relating to influencers,” wrote Launchmetrics. “There has also been a shift in consumer perception on influencers, especially relating to celebrities.”

Micro-, mid-tier, mega and star influencers are popular to different degrees, in response to the social media platform. Star influencers accrue essentially the most share of MIV on Chinese social-media platforms comparable to Weibo and WeChat, in comparison with mid-tier and mega influencers playing a far more essential role driving MIV on Instagram and Facebook.

Despite the big variety of celebrity beauty brands launched over the past two years, Launchmetrics found that consumer skepticism has never been at a better level. It said 67 percent of consumers have a “low” trust level relating to celebrity influencers, especially vis-à-vis health and wonder products.

Consumer engagement reflects this, with celebrity beauty brands, on average, seeing a decline of their MIV stats on-year.

Bucking that trend, nonetheless, is star influencer beauty brand Kylie Cosmetics. It took 18th place in Launchmetrics’ report, generating greater than $121 million in MIV, which represented 39 percent on-year growth.

The highest 10 brands in the primary half of 2022 in response to MIV were Dior, with $388 million, because of Jisoo Kim; L’Oréal Paris, the one mass-market brand, with $360 million; Lancôme, with $337 million; MAC Cosmetics, with $274 million; Estée Lauder, with $260 million; Chanel, with $243 million; Nars, with $199 million; Charlotte Tilbury, with $194 million; Fenty Beauty, with $183 million, and YSL Beauté, with $174 million.

The highest five beauty brands with essentially the most on-year MIV gains were: Viktor & Rolf, up 225 percent to $7.8 million; Escada, with a 114 rise to $929,000; Mont Blanc, with a rise of 112 percent to $6.7 million; AmorePacific, with 106 percent growth to $48 million, and Coach, posting an 88 percent rise to $3.5 million.

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