The web-based article, titled “Strategies to succeed in the Fast-Evolving Premium Beauty Market”, illuminates the various innovative strategies that are being adopted in the industry to sustain growth and competitiveness.
This paper is an attempt to review the article, with the sole objective of synthesizing salient aspects as contained in class topics and the proposed business ideas.
In the proposed beauty and cosmetics business, the salient business ideas are that the business will (1) operate in a premium segment due to the prestige of the brands that will be produced, (2) use premium pricing policy for finished anti-aging products, and (3) employ the direct marketing strategy.
The article under review addresses the premium segment issue by acknowledging that, to combat stiff competition from mass-produced beauty products, premium beauty players should underscore the importance of promoting the brand experience to assist in differentiating their premium brands from mass-produced brands.
Some of the ways through which such differentiation could be achieved, according to the article, include providing more personalized solutions, increasing innovativeness and creativity, enhancing customer interaction in physical stores and in the digital space, and developing a superior presence across the pricing continuum so as to make products available to a broader array of customers with differing intensities of affordability.
The article acknowledges that the premium cosmetics market is exceedingly consolidated and fairly stable and that the justification for minimal movement in industry consolidation is premised on the fact that competition has become more and more time consuming, especially after the appearance of mass-produced beauty brands.
Consequently, innovation is critical in the premium beauty market segment not only to provide manufacturers with an avenue to add substantial value to the products for the purpose of differentiating them from mass-produced products but also to continually attract and retain customers through dedicated product innovation.
In the proposed business, it should be recalled that the anti-aging products will be made using active and natural ingredients, and new technologies will be employed to enhance product outcomes and user experiences.
The article introduces a strategic direction for the beauty industry by arguing that players in the premium beauty industry should be dedicated to developing few strong brands not only to adequately satisfy the needs and expectations of customers, but also to attain economies of scale in leveraging products equity across manifold competitive groupings.
Additionally, the article is categorical that product innovation should form an essential component in the development of a business strategy aimed at driving and sustaining value growth, and that the concept is of great importance in the premium beauty segment as it satisfies customer demand and rationalizes the premium price points these products carry.
As suggested in the article, major players have competed on product innovation to broaden and maintain their customer base during periods of economic upheavals and financial recessions, with the major trends supporting the concept consisting of ‘high-tech efficacy, targeted innovation, category cross-over, as well as exceptionality and complexity.’
Some of these trends have been included in the proposed business (e.g., high-tech efficacy, exceptionality and complexity), but it is imperative to include the others, with the view to attracting new customers and retaining existing ones.
Overall, this article is an eye-opener for players wishing to start a business in the premium beauty segment. The article has elaborated why innovation is critical in the beauty industry, not mentioning that several strategies to attract and retain customers have been illuminated.
The article’s dedication to expound on product innovation, its trends and benefits in the premium beauty industry qualify it as a must-read for people wishing to enter this market.