Consumers remain stressed by lofty interest rates, the cost of living and a contentious presidential campaign, but sentiment has inched upward. Still, value is a top priority, and recent retail earnings reflect a penchant for bargain hunting. Off-price players TJX, Burlington and Ross reported strong second-quarter results, while Ulta Beauty lost prestige market share as it faced cautious consumers.
It’s not all doom and gloom. According to an August survey conducted by global management consulting firm McKinsey & Co, consumers reported a higher willingness to splurge across both essential and semi-discretionary categories heading into the holiday season. Interest in spending on skincare and makeup as well as toys, vehicles, non-alcoholic beverages and baby supplies increased the most between the second and third quarters of the year.
As retail readies for the busiest season of the year, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked six analysts and consultants the following questions: What’s the outlook for the 2024 holiday shopping season? How would you advise beauty brands to prepare for it?
SUSANNAH DELLINGERFounder and CEO, Bright Beauty Collective
As we start to dive into the 2024 holiday shopping season, we can already feel the beauty industry bracing for the festivities with a lot of uncertainty. The economic jitters and fierce competition is reality. But I think the outlook is sparkling with potential for those who can master the art of holiday retail magic. Here’s how we think beauty brands can sleigh the season in retail beyond the tried and true tips of adding bows to literally everything.
Make everyone feel special: Holiday shoppers love a good personal touch. Use data to tailor your digital messages and offers that feel like a gift wrapped just for them. Personalized retail promotions, exclusive collections, holiday gift sets, limited-edition products and an in-store experience where they get one-on-one attention can make customers feel like they’re getting VIP treatment—and who doesn’t love feeling special?
Go green or go home: This year, sustainability continues to be the new black. Show off your eco-friendly initiatives and ethical practices like a badge of honor. Think recyclable packaging and cruelty-free products. Not only will you win over environmentally-conscious shoppers, but you’ll also avoid being on the naughty list.
Look for out-of-the box holiday pop-up experiences: Step outside of your retail comfort zone and look at holiday pop ups in unique places such as high-end hotels and luxury restaurants and reach an entirely new customer (one of our favorites is at the Faena Miami)
Rock the omnichannel experience: Whether it’s a cozy in-store experience or a slick online setup, make sure your shopping journey is seamless. Think of it as your brand’s holiday party. Make sure the invites (or promotions) are out, the decorations (or website) are dazzling, and the service is top-notch.
Stagger holiday giftables throughout the season: With the official start of holiday shopping in retail now being as early as September, often those holiday giftables and sets you planned strategically for will often be sold out prior to Halloween, and your customer hasn’t even started shopping for actual gifts yet. Be sure to leave something up your sleeve for November whether it be in retail or on your own e-commerce
Plan ahead or else: The holiday rush can be a whirlwind. Avoid the chaos by planning your inventory and logistics as meticulously as you plan your holiday party guest list. Efficient stock management and reliable shipping partners will keep your holiday sales from turning into a supply chain fiasco.
In short, to thrive this holiday season, beauty brands need to blend tech-savvy strategies with a touch of sustainability and a big sprinkle of personalized magic. So, deck the halls with digital prowess and make this season one for the beauty history books. At Bright Beauty Collective, we’re ready to see which brands will sparkle the brightest this holiday season.
To read the other five outlooks, click here for the entire story!
