Save time by listening to our audio articles as you multitaskNow the upstarts are showing some wrinkles, as their business models are tested, investors lose patience with red ink and the incumbents up their game. The sales of Glossier, a hot American make-up firm most recently valued at $1.8bn, fell by a quarter in 2021. The firm has laid off a third of its staff; its long-rumoured initial public offering may be the subject of rumours for a while yet.
It also helps digitise beauty shopping, which as a deeply sensory experience has long resisted digitisation. Il Makiage is developing artificial-intelligence algorithms to help people choose the right foundation shade. Other brands useTechno-literacy may also make it easier to identify and target historically underserved market segments. Fenty Beauty caters to consumers who, like its founder, Rihanna, a pop icon, have a darker skin tone. In May the firm launched in eight African countries.
The influencer-based marketing strategy, meanwhile, has proved great at encouraging initial purchases but not necessarily repeat buys. Moreover, as the influencer economy has grown, so have the cheques demanded by the biggest names. They command as much as $200,000 for a single social-media post. The fees may be bid up further as the incumbent giants increase their social-media exposure, which most of them are desperately trying to do in order to appeal to younger shoppers.
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Glossier sells garbage products, great marketing that’s about it
These type of products can easily destroy skin