Beauty Is a Lucrative Market — No Wonder Fashion Brands Want In

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'Beauty is a very hard business.'

want a piece of the pie. However, in recent years, we've seen an uptick in another type of beauty brand creators: fashion labels.

From a business perspective, the motivation behind brands taking this next step into the beauty space makes perfect sense."Beauty products tend to have high margins and high repeat rates," Jackson says."Beauty products are also not trend driven and not usually subject to the mark-down pressures of apparel due to seasonality or trend."

With skin care, makeup, or perfumes within their walls, fashion retailers increase their chances of becoming a one-stop shop for consumers, which equals even more revenue for them. But in an already overcompetitive, oversaturated market, are these fast-fashion brands positioned to be successful? "Fashion brands have to consistently come up with new innovations, new product launches, and drops, while beauty can have a much slower development calendar."

 

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