Karla Rendle, Euromonitor International03.16.16
Millennials (20-35-year-olds) globally face high competition for jobs and lower than average wages; yet, they remain some of the strongest consumers in Western Europe and the U.S. for beauty and personal care. Generation Z (6-20-year-olds), most of whom are not yet earning, also seem to be developing an appetite for premium beauty brands.
In comparison to older generations, lower spending power limits a perceived desirability for Millennials and Generation Z as a key consumer base for beauty brands. Globally the average gross income of 25-29 year olds is 35% lower than the 55-59 year olds generation in 2015.
However, the escalating interest in beauty marks Millennials as an important demographic for both mass and premium brands.
Living for the Moment
To some extent, an increased interest in beauty and personal care can be attributed to changes in traditional lifestyle patterns, as we see Millennials who typically earn less than the average income, prioritizing appearance above other spending concerns. For some, traditional aspirations, such as getting married, having children and investing in property are being pushed to later in life. For others, it has become common to continue living with parents for longer in order to avoid paying high rental costs.
This revised lifestyle focus, where saving for the future is replaced with an emphasis on living for the moment, has helped to promote a culture in which personal appearance is of the upmost importance. Feeling and looking one’s best on all occasions is prioritized, and more time and effort is spent on personal grooming.
A Social Beauty Experience
When examining Generation Z consumers, whose main source of income comes from parents or part-time work, beauty is also increasingly becoming a priority at an increasingly young age. The intensified preoccupation with beauty products and application comes from being exposed early on to a digital world of selfies, YouTube makeup tutorials and the ability to share beauty experiences on social media without having to leave one’s bedroom. With so much to research, watch and learn online, the beauty routine has fast become a leisure activity in its own right for Generation Z.
Most importantly, beauty has also become a way to interact with others. The ability to share images on social media is a
key part of this as communication is made through platforms such as Instagram, YouTube and Snapchat. Uploading a video, selfie or a product image is a way to start a conversation, show others a perfected look and gain peer social acceptance through likes and followers.
Modern terminology within color cosmetics has been quickly adapted by the younger generations, particularly for technique based products such as contouring kits, strobing (highlighting) sticks and, most recently, “baking” powders.
Generation Z’ers are also developing their own language for beauty, with the slang term “on fleek” (meaning “on point”) being representative of just how important beauty and grooming is to social status. Originating as a vine posted by a teenage girl in Chicago who coined “eyebrows on fleek” (describing her perfectly groomed and pencilled eyebrows), the term quickly spread across the globe as a meme and is now frequently used globally by teens as a hash tag accompanying over 843,000 Instagram posts, predominantly color cosmetics images.
Because They’re Worth It
While mass brands have been able to engage young beauty buyers with affordable products (particularly the likes of Kiko or CoverGirl), it seems that, for certain products and brands, young consumers are also willing to opt for premium alternatives. Key influencers play an important role in this, and social media is integral in connecting consumers to their beauty ambassadors; namely YouTube stars and celebrities with a large social media following.
Lush is a highly coveted brand among Millennials and Generation Z consumers flock to purchase Lush-branded bath bombs, face masks and a host of organic hair and skin care products at a much higher price than pharmacy/drugstore brands. It is no coincidence that YouTube vlogger Zoella often posts “Lush haul” videos on her YouTube channel,
reviewing and promoting Lush products.
Zoella has almost 10 million subscribers on YouTube and is a key influencer of teenagers in the UK. Any brands she mentions are instantly catapulted onto the radar of young consumers, regardless of price point.
When it was announced via social media that reality star Kylie Jenner used the MAC “Velvet Teddy” shade of lipstick, the product sold out across the UK for a number of weeks. Sister and model, Kendall Jenner, signed as the face of Estée Lauder, helps create record sales of any product she personally endorses via her own social media platforms. MAC and Estée Lauder promote products that are triple the price of popular pharmacy/drugstore brands; and despite this, young consumers are willing to trade up to the brand, happy in the knowledge that their role model is using it.
Early Focus on Y and Z
When considering how far brands should go to target Generations Y and Z, they should bear in mind that spending constraints will mean some millennial consumers and certainly Generation Z consumers are unlikely to commit full loyalty to a premium brand. Instead, they remain variable, continuing to mix and match premium with mass and only trading up if a product or brand is deemed worthy. To ensure they are poised to capture Millennial and Generation Z consumer interest, premium brands should concentrate on offering entry level flagship products and lines that embrace innovative beauty trends.
Appearing on the right social media platforms and falling into the hands (and personal social media accounts) of the most sought-after role models is also key in creating desirability amongst these generations. However, these age groups are quick to spot endorsements that don’t feel genuine; therefore, creating an authentic relationship with and being able to identify key vloggers and celebrities may be pivotal when gaining younger generations’ trust and following.
Looking to the future, we will see Millennials climbing the ladder to a higher income, and Generation Z entering the world of work. Although spending priorities may shift slightly, established attitudes toward living and spending in the moment, sharing beauty experiences digitally and seeking out genuine product endorsements via social media is likely to preserve an already highly developed appetite for beauty amid these generations.
ABOUT THE AUTHOR:
Rendle
Karla Rendle is a research analyst for beauty and fashion at Euromonitor International.
In comparison to older generations, lower spending power limits a perceived desirability for Millennials and Generation Z as a key consumer base for beauty brands. Globally the average gross income of 25-29 year olds is 35% lower than the 55-59 year olds generation in 2015.
However, the escalating interest in beauty marks Millennials as an important demographic for both mass and premium brands.
Living for the Moment
This revised lifestyle focus, where saving for the future is replaced with an emphasis on living for the moment, has helped to promote a culture in which personal appearance is of the upmost importance. Feeling and looking one’s best on all occasions is prioritized, and more time and effort is spent on personal grooming.
A Social Beauty Experience
When examining Generation Z consumers, whose main source of income comes from parents or part-time work, beauty is also increasingly becoming a priority at an increasingly young age. The intensified preoccupation with beauty products and application comes from being exposed early on to a digital world of selfies, YouTube makeup tutorials and the ability to share beauty experiences on social media without having to leave one’s bedroom. With so much to research, watch and learn online, the beauty routine has fast become a leisure activity in its own right for Generation Z.
Most importantly, beauty has also become a way to interact with others. The ability to share images on social media is a
Modern terminology within color cosmetics has been quickly adapted by the younger generations, particularly for technique based products such as contouring kits, strobing (highlighting) sticks and, most recently, “baking” powders.
Generation Z’ers are also developing their own language for beauty, with the slang term “on fleek” (meaning “on point”) being representative of just how important beauty and grooming is to social status. Originating as a vine posted by a teenage girl in Chicago who coined “eyebrows on fleek” (describing her perfectly groomed and pencilled eyebrows), the term quickly spread across the globe as a meme and is now frequently used globally by teens as a hash tag accompanying over 843,000 Instagram posts, predominantly color cosmetics images.
Because They’re Worth It
While mass brands have been able to engage young beauty buyers with affordable products (particularly the likes of Kiko or CoverGirl), it seems that, for certain products and brands, young consumers are also willing to opt for premium alternatives. Key influencers play an important role in this, and social media is integral in connecting consumers to their beauty ambassadors; namely YouTube stars and celebrities with a large social media following.
Lush is a highly coveted brand among Millennials and Generation Z consumers flock to purchase Lush-branded bath bombs, face masks and a host of organic hair and skin care products at a much higher price than pharmacy/drugstore brands. It is no coincidence that YouTube vlogger Zoella often posts “Lush haul” videos on her YouTube channel,
Zoella has almost 10 million subscribers on YouTube and is a key influencer of teenagers in the UK. Any brands she mentions are instantly catapulted onto the radar of young consumers, regardless of price point.
When it was announced via social media that reality star Kylie Jenner used the MAC “Velvet Teddy” shade of lipstick, the product sold out across the UK for a number of weeks. Sister and model, Kendall Jenner, signed as the face of Estée Lauder, helps create record sales of any product she personally endorses via her own social media platforms. MAC and Estée Lauder promote products that are triple the price of popular pharmacy/drugstore brands; and despite this, young consumers are willing to trade up to the brand, happy in the knowledge that their role model is using it.
Early Focus on Y and Z
When considering how far brands should go to target Generations Y and Z, they should bear in mind that spending constraints will mean some millennial consumers and certainly Generation Z consumers are unlikely to commit full loyalty to a premium brand. Instead, they remain variable, continuing to mix and match premium with mass and only trading up if a product or brand is deemed worthy. To ensure they are poised to capture Millennial and Generation Z consumer interest, premium brands should concentrate on offering entry level flagship products and lines that embrace innovative beauty trends.
Appearing on the right social media platforms and falling into the hands (and personal social media accounts) of the most sought-after role models is also key in creating desirability amongst these generations. However, these age groups are quick to spot endorsements that don’t feel genuine; therefore, creating an authentic relationship with and being able to identify key vloggers and celebrities may be pivotal when gaining younger generations’ trust and following.
Looking to the future, we will see Millennials climbing the ladder to a higher income, and Generation Z entering the world of work. Although spending priorities may shift slightly, established attitudes toward living and spending in the moment, sharing beauty experiences digitally and seeking out genuine product endorsements via social media is likely to preserve an already highly developed appetite for beauty amid these generations.
ABOUT THE AUTHOR:
Rendle
