Beauty brands should look to multi-channel strategies to target millennials, says GlobalData
Beauty brands are increasingly expanding their reach across online platforms, with social media and now music streaming services operating as sales vehicles for products, particularly targeted at millennials, says GlobalData, a leading data and analytics company.
For over a year, Spotify has collaborated with online retailer Merchbar to allow fans to purchase merchandise related to musicians directly from their profile pages, and the Spotify artist page of vocalist Maggie Lindemann now includes beauty products.
Lia Neophytou, Consumer Analyst at GlobalData, commented: “The collaboration will allow listeners to easily buy the ‘look’ of many influential artists as a form of next-generation shopping, already common on social media platforms such as Instagram and Pinterest.
“This marks an important shift taking place in the retail landscape, whereby online channels are growing in prominence and becoming more integrated with consumers’ lives.”
According to GlobalData’s consumer research, over a third (36%) of global consumers currently purchase beauty and grooming products online directly from brands, while 34% of global consumers purchase these products online from a retailer.
When looking at millennials, these statistics rise to 41% and 39% for each channel respectively, highlighting this consumer demographic as Spotify’s ideal target audience.
Neophytou adds: “Shopping for products directly through popular applications will become more prevalent in the future, as services such as Spotify become retail channels in their own right.”
However, unlike Instagram, Pinterest, or other image-based platforms, which have ‘click-to-shop’ features - users do not currently visit Spotify for influence about what products and services are best to use, or in this case to discover new beauty trends. This poses as a challenge that Spotify will face in connecting with the broader beauty consumer.
“Brands in the beauty and grooming category should optimise their multi-channel strategies in attempting to balance competing consumer demands for both convenience and enhanced shopping experiences. Working across multiple offline and online platforms will enable brands to more easily capitalise on consumer interest, while providing instant shopping gratification,” concludes Neophytou.