How Millennials Are Transforming the Beauty Industry
There are 80 million Millennials in America, and as of last year, their purchasing power grew to around $200 billion annually. Because of this growth in annual spending, it’s important that every industry, including beauty, pay attention to the wants and desires of this generation.
While only 38% of Baby Boomers buy beauty products based on price, almost two-thirds of Millennials do. This finding has huge implications for brands hoping to attract this younger generation. Whereas other generations are more brand loyal, Millennials tend to value the price of a product over the brand name. This means that drug and grocery retailers will be able to attract Millennials with their competitively priced beauty products.
What products are Millennials looking for? This generation treats buying beauty products as a treasure hunt. Rather than walking into a store knowing exactly what they want to purchase, Millennials prefer to browse until something new and exciting catches their eye. In fact, this generation is incredibly adventurous when it comes to trying new products and is heavily influenced by what they see online. Brands and wholesale distributors should stay up-to-date with the latest trends by studying beauty blogs, YouTube videos and social media channels. Millennials make it a habit to search these platforms to identify new trends or discover new brands.
The good news for beauty brands? Millennials love beauty products, and buy a lot of it. Over half of Millennials surveyed buy an entirely new supply of makeup depending on the season, to adjust their changing color and skin care needs. This means that wholesale distributors and retailers must be consistent with updating inventory and adding fresh items as the seasons and trends change. Over 80% of Millennials also said they put great thought into their makeup routine, carefully researching brands and watching how-to videos online on a regular basis.
However, it’s not all good news for beauty brands, specifically those in drug and grocery retailers. Millennials look for the ability to sample products before buying and love when there are trained employees on-hand to help them test a product or point them in the right direction when they describe what they need. These luxuries are obviously not as available in grocery and drug retailers as they are in high-end department and specialty stores. Therefore, these brands must work with wholesale distributors that can effectively train retailers’ employees to fill this role. Brands should also look to offer samples for their products online, so Millennials can still have that high-end store experience with your beauty product.
Ready to launch your new beauty product to Millennials? Contact Mr. Checkout Distributors to talk to a team of experienced distributors that service over 35,000 grocery and convenience stores across the country.