According to an industry analysis conducted by Grand View Research, the craft cosmetics industry is on pace to become a $16 billion industry by 2020. This trend represents an opportunity for small retailers to capitalize on the hot concept of "seasonal and local" when sourcing products for both brick-and-mortar and online specialty sales. To better understand the opportunity at hand, let's take a closer look at some of the forces shaping this trend.
- Organic and local: Green is queen in the world of women's marketing, especially in the health and beauty sector. According to WomensMarketing.com, research shows that 54% of women prefer organic skin products and plan to purchase them in the future. Greater awareness of the endocrine-disrupting chemicals commonly used in the production of such products leads to an "if you can't eat it, don't wear it" mentality. In addition, the reliance of mass-produced cosmetics on petroleum by-products flies in the face of efforts to reduce production of fossil fuels.
- Cultural marketing: Local craft make-up brands capitalize on another current market force, popular specifically among millennials: cultural marketing. In the past, cosmetic branding downplayed cultural and ethnic differences and promoted a more generic beauty ideal. Now, new brands emphasize and value differences between Caucasian, Latino, African-American, Asian and blended-ethnicity customers.
- Indie brands: With the rise of social media as a marketing platform, indie brands offer the unique points-of-view and intriguing brand "voices" that motivate today's women. The hottest brands tell a story and create a sense of community through their philosophy, their marketing strategy, and even their ingredients.
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