Beauty’s Biggest Impacting Forces, Per FIT Capstones
What forces will impact the beauty industry the most, employee behavior or AI? The advent of India as an emerging market, or shoppers over the age of 60?
Students from the 2023 class of the Fashion Institute of Technology’s Masters in Cosmetics and Fragrance Marketing and Management program had a resounding answer during their two capstone presentations last week: all of the above.
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The theses, presented in-person on Thursday, posited that the change wrought on beauty by the pandemic will only accelerate. Keeping pace, the groups agreed, was essential to long-term business health.
During the first presentation, students focused on a triumvirate of trends — the emergence of India as a key global market, tapping into the spending power of consumers over 60, and how artificial intelligence will change the way consumers interact with beauty companies.
According to the presentation, India will be the third largest global economy by 2030, which given its sheer size — the population has already surpassed that of China with more than 1.4 billion people — means big things for beauty. The category is growing at 8 percent, driven by prestige beauty, which is swelling at twice the rate of mass market products. Per the research, it represents a $28 billion opportunity for beauty brands.
Pricing strategies, as well as next-generation payment options, are imperative to resonating with Indian consumers, the group contended. Ninety percent of the population will have internet by 2030, and its “smart cities” have driven the adoption of digital payments. The group came up with a framework for thinking of India called “EPIC,” an acronym for economic opportunities, population growth, infrastructure and cultural growth pillars such as Bollywood, weddings and yoga.
Another demographic to watch is more domestic in nature. Called the Silver Spender, consumers ages 60 and older will comprise roughly half of the world’s population, and currently hold the same percentage of global net worth. Many of them currently spend on beauty, particularly on spa services, wellness offerings and facials.
A targeted approach with representation of the group’s heterogeneity was part of the team’s recommendation. Consumers in that cohort span three generations and five decades, nuances that are oft overlooked in advertising. Per the research, silver spenders are more typically depicted in media as ailing or sick, often under medical care.
Artificial intelligence will also play a role in how shoppers are recommended products. Platforms such as Spotify, Netflix and TikTok provide a template to beauty brands and retailers on how to recommend based on current pop culture references, emotions and seasonal recommendations.
The second presentation thematically focused on the future of talent and employee retention. That necessitates evaluating candidates more holistically. Enter the Career Cosmo, the students’ proposed talent evaluation matrix. It takes into account the personal and professional, ranging from values and aspirations to experiences, professional background and personality.
The group also saw room for innovation in human resources. The presentation reimagined traditional HR departments as a CARES Team, an acronym that stands for coaching, acquisition, rotation, exploration and services. That team focuses on career growth and coaching, strategizing career trajectories and essential functions, such as payroll and benefits.
Despite the size of the beauty industry, researched indicated that it hasn’t been sufficiently marketed to workforce entrants and recent graduates. The team sees room for an industry collective, à la Cosmetic Executive Women and the Personal Care Products Council, to focus on talent development and retention across organizations.
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