Scaling up your business, means expanding your brand internationally. There are a number of ways in which to approach entering a new market – through working with a distributor; through selling directly into retailers; through opening up stores with franchisee partners or setting up your website in the new market, supported by marketing and a 3PL.
The beauty industry is a buoyant industry, valued at $430 billion in 2022, and it is constantly evolving. Unlike some sectors, it draws in a wide array of people from different backgrounds, from investors, to celebrities, dermatologists, doctors, dentists to everyday people who have come up with their version of the next Big Idea.
Whilst it did experience a dip during COVID-19 it recovered quickly, and is estimated to be worth $580 billion by 2027, growing at a projected rate of 6% a year. One of the fastest growing channels within the beauty industry is ecommerce, unsurprisingly this quadrupled between 2015 and 2022, and now has a share of 20%. Travel retail has also bounced back following COVID-19, with several global beauty brands like Rituals and Augustinus Bader, experiencing phenomenal growth across travel retail.
In terms of markets, the US and China remain the two biggest markets, although this is driven by large multi-national companies, followed by Japan, India interestingly, Brazil, Germany and France. Both the Middle East and India are predicted to be the two new hot spots, and we have already seen several very innovative brands from India, launching into the UK market.
Trends driving growth include the blurring of lines between beauty and wellness, which now encompasses health and fitness, mental health, sexual health, nutrition, and apps. We have also seen a shift in consumers habits, with the rise of the digitally savvy Gen Z generation shopping across platforms like TikTok and YouTube, claiming to try new brands every two to three months. We have also noted a rise in the ‘ultra luxury’ category with consumers buying into prestige hair care, fragrances and skincare products.
Over the past year, we have been consulting with more and more of our clients, on how to grow their brands across marketplaces including the UK, Europe, Middle East and Travel Retail. If international growth is on your agenda for the foreseeable future, there are a few elements to consider when exporting:
Scaling up your brand is an exciting consideration, and there are a number of independent brands who are achieving this very successfully. If international growth is part of your strategy, come and speak with us to discuss how we can support you across markets. Get in touch.
‘As a Queensland-based company, we were determined to tap into the European market and establish a strong presence. From the very beginning, Bespoke Advantage demonstrated a deep understanding of our export goals and objectives. Their comprehensive knowledge of the European market, coupled with their extensive network of contacts, enabled them to connect us with key decision-makers and influential stakeholders in our target countries. Their strategic guidance and insights were invaluable in shaping our export strategy and positioning us for long-term success.’
‘With the assistance of TIQ, we engaged Bespoke Advantage to help us enter the highly competitive but lucrative UK market. During the last few months Janet and her team have worked diligently to introduce and expose Perfect Potion to buyers and retailers we would never have been able to reach being based in Australia.’
‘Janet has a wealth of experience across retail, buying and marketing. She conducted a full strategic review of our cross functional business and the travel retail market to develop a comprehensive buying and quality control strategy that was signed off at board level. I highly recommend her as an asset to any business.’
‘Through Janet’s management skills, expertise and proven track record on the job she successfully managed the purchasing of our retail operations and ensured the integrity of our brands in-stores. Her enthusiasm and total dedication, delivered results in any project she was involved in.’
‘Janet has excellent beauty market knowledge. Level headed with clear vision, direction and the ability to drive business forward, Janet led the teams through a complete product design change advising on what the key marketing messages should be, incorporating her technical knowledge and beauty expertise.’
‘Absolutely fantastic course. Condensed learning from Janet, an expert in developing beauty brands. Also, valuable introductions to expert professionals, in the Masterclass sessions. In 12 weeks, you will learn from Janet, what would take years to learn by yourself. A very worthwhile investment’