Let’s go on!

COSSMA: Some cosmetics manufacturers switched to the production of disinfectants, suitable packaging and other hygiene solutions last year. Will that continue?

Irina Barbalova: A number of the shifts in consumer behaviour and consumption observed in 2020 are likely to persist and become permanent fixtures in life. According to Euromonitor International’s Voice of the Industry 2020 Covid-19 Survey of close to 5,000 professionals working in companies spanning multiple industries and geographies, ‘buying more health and wellness related products‘ is expected to be a permanent change in consumption habits as a result of the pandemic by over 40% of industry professionals. Furthermore, our ‘Beauty Survey 2020’ results suggest that over 60% of consumers reported using a hand sanitiser at least twice per day last year, a habit that is likely to stick even beyond the pandemic subsides. Greater preoccupation with preventative health and demand for hygiene solutions that reduce the risks of contamination, will be critical to product development strategies for players across the whole supply chain in beauty. Refocusing efforts on in-demand and more resilient product segments, including hand sanitisers and soap, makes both commercial and logistical sense, especially for those that have the operational capacity and can also leverage value-added benefits and credentials from adjacent categories like fragrances and skin care, for example.

What influence will sustainability have on the development of products and solutions over the next months?

The definition of sustainability is evolving beyond ethical credentials and environmental concerns, towards ‘purpose over profit’, a more holistic approach that aims to create social, environmental and economic value. The social welfare aspect of sustainability, including community support and the wellbeing of employees and customers is not to be ignored, as consumers are taking note of the brands that have reinforced their social responsibility during the crisis and will seek out these credentials in the future. The importance of morally aligned brands will be escalated. According to Euromonitor’s ‘Voice of the Industry’ survey over 70% of businesses are sticking to pre-Covid sustainability commitments despite the economic fallout and a similar proportion expecting consumers to be more conscious of such efforts in the future.

Key areas of development will be initiatives and product innovation around water optimising solutions, carbon-positive and carbon-neutral supply chains, as well as assurance of safety, ethical sourcing and transparency of ingredients.

What positive aspects can companies take with them from 2020?

Consumer priorities are changing but so is the scope for innovation and engagement as a result. A number of new opportunity areas are emerging, including the rise of masstige and upscaling of mass offerings, greater focus on the functional aspects of beauty, as well as product hybridity and multifunctionality, namely in the form of a more pronounced convergence between colour cosmetics with skin care, which was already observed pre-pandemic. With more engrained at-home habits, DIY beauty will see a resurgence in the context of skin care treatments and devices, clinical-strength oral care, and salon-like hair care and nail care alternatives. Furthermore, considering convenience, product accessibility and the all-important ‘touch and feel’ aspect of beauty, investment in flexible subscription models as a means of replenishment and sampling may need revisiting. One of the most pronounced themes will be that of wellness and the further alignment of beauty with health and wellness-oriented attributes and positioning. Health will become a central strategy for every business. With the self-care mindset setting in deeper, multiple prospects stemming from wellness can be explored further, such as therapeutics, hygiene

and immunity associated benefits, the gut-skin-brain health axis, enhancing credentials of clean and safe formulations, dermatologist/doctor founded or endorsed brands for greater science-backing, mental wellbeing, but also any attributes that evoke a sense of indulgence and ultimately happiness. Indeed, with mental wellness and emotional health taking centre stage, propositions embedding emotional support in their branding, communication and product  positioning or ingredients are set to prevail. And finally, digitalisation and e-commerce acceleration – undeniably the biggest game-changer in the industry

as a result of the pandemic. Building on the digital activation and omnichannel strategies already observed pre-Covid-19, companies will need a refocus in the context of a more pronounced need for virtual experiences alongside new points of sale within social networks and livestreaming. Utilisation of AR/VR, livestreaming and shoppable social media will help build up digital presence, while sampling technologies will change how consumers experience the sensorial aspect of beauty. 

Beyond pushing online sales however, the key focus will be on creating communities that allow for more seamless product discovery, virtual assistance and community building.

What will be the major challenges for the cosmetics industry in 2021?

The industry will need to brace itself for a continued battle to capture and engage with a more channeland brand-agnostic consumer as a ‘new normal’ socioeconomic reality unfolds.

Striking the right balance between accessibility, affordability and the right product mix suited to newly formed lifestyle habits, beauty routines and need states will require a fresh reassessment of current value propositions and portfolios.