August 30, 2016
Indie beauty is one of the latest trends to hit the cosmetic retail market. It is defined as independently owned businesses that produce and provide products that have heart and soul – the types of product that have a true, personal meaning behind them, whether it is based on quality, passion, wellness, and/or sustainability. Indie Beauty products on the market are typically all-natural/organic cosmetic goods which are highly preferred by the target audience, millennial women. The products’ formulations are not only eco-friendly, but their packaging is as well – which allows the consumer to feel as if they are part of a larger movement of living a sustainable lifestyle.
Indie Beauty brands provide the cosmetic retail market with differentiation that drives growth among consumers. Major retailers such as Target have added Indie Beauty brands to their store shelves allowing consumers to have easier access to high-quality, all natural cosmetics. It also allows Indie Beauty companies to have access to main stream commercial success since in the past such companies relied on social media and internet for their sales and marketing.
Indie Beauty brands not only offer advantages to retail stores, but also offer major cosmetic players the potential to reinvent and extend their brands. The Indie brands offer major cosmetic players examples of innovative ideas as well chances for M&A. In recent years, major players have increased their acquisitions of Indie Beauty brands. In 2015, over 60 M&A deals were made and we project this trend to continue for the next several years.
If you have any consulting needs regarding Indie Beauty or other cosmetic/personal care, please contact TCI for further discussion.