HOW WELLFULLY NAVIGATES THE CHANGING LANDSCAPE OF BEAUTY CONSUMERISM
With ‘closures due to COVID’ becoming an almost daily headline across industry press in the beauty realm, it has once again raised the question of how the beauty industry will survive the effects of the pandemic and indeed will it ever be truly thriving as it was before.
Here we examine the trials and tribulations of the rapidly changing face of beauty consumerisms and it’s not all bad news.
FROM BRICKS AND MORTAR TO DIGITAL EVOLUTION
From New York, to Southern Europe and everywhere in between we are seeing a rapid move by iconic retailers into the digital realm. The new high street shopping experience that was once a way of life, is today, a very different concept with signals showing the seasonal and exciting window displays that once brought in the crowds, and the in-store experiences that were once as enjoyable as the purchasing itself, could all well be on the way to becoming a ‘thing of the past’.
Take the recent report from Cosmetics Business that Douglas, the leading European premium beauty platform, will close 500 stores in the Southern Europe region; the news that UK e-tailer BOOHOO has cemented a 55 million GBP deal to snap up struggling UK brand, Debenhams (excluding the retailer’s brick and mortar stores), and similarly British fashion giant, ASOS signed a 265 million pound deal with the Arcadia Group, taking Topshop, Topman, Miss Selfridge and HIIT under its wing, however also excluded in the deal are the physical stores.
These three examples alone are expected to cause in excess of 27,000 job losses so while there is a clear issue here of beauty and retail experts being unemployed, the challenge for brands missing out on bricks and mortar trade could also be devastating.
“Traditionally beauty brands will spend months in negotiations with big retailers for real estate space and communications and marketing support to launch new products, increase visibility in store and target traditional shoppers; but in these unprecedented times, you can clearly see that when you take this approach in a volatile commercial environment, brands will suffer. When you spend sometimes as much as 6 months to a year to secure great retailers, in most cases, you will be the last supplier paid when things go south. Launching our brands in times of COVID has allowed us to stay ahead of that curve, partner strategically with online retailers and stay in control of our revenue, content and distribution channels,” explains Wellfully CEO Paul Peros.
“It is sad to witness iconic retailers closing their doors, but when you take our practices, speed and agile approach, I am relieved that this won’t impact the Wellfully portfolio and thankfully, as we spent time and resources in 2020 developing and refining our own methods and activities for operations, sales, communications, revenue streams and logistics for a changing environment, we are in a very good position to continue our growth through 2021 and beyond. I feel we will see many more of these headlines over the coming years as COVID is far from over so the time to lead and take the new path is here.” adds Peros.
CONFIDENCE IN THE WELLFULLY APPROACH
The downturn for dominant beauty brands has been widely reported in recent weeks with Shiseido citing ‘increased global competition and the uncertain fiscal environment caused by COVID’, the reason to release parts of its portfolio to CVC Asia Pacific Limited for 1.5 billion USD. However, in a positive turn, it announced this sale will enable them to center on skincare with the goal to become a leader in the field by 2030 – a good nine years from now.
Similarly in the West, last week, French conglomerate, LVMH, announced the closure of its Fenty fashion brand with global sensation, Rihanna after only two years, although the closure will not affect the Fenty Skin; a side project which delivered 26 million GBP in four months, according to WWD.
In another nod to investor confidence in the beauty and skincare realm specifically, Wellfully also last week announced its capital raising of A$ 2.50-4.00 million. Eventually, the raise was oversubscribed and the company secured A$ 4.75 million from investors.
“Imagine perceptions from the last decades when Saturday ‘days out on the High Streets’ were shopping goals. The shift is here. It’s like betting on Tesla almost 20 years ago.. an alien concept at first, but showed the world could change for the better….. now it’s the beauty industry paving the new path for innovation and people like it,” explains Peros.
HOW IS WELLFULLY WEATHERING THE STORM OF COVID CONSUMERISM
Wellfully is science-led and fully integrated and has always held innovation and technological product development and advancement at the forefront. Its technologies are not only breaking barriers and giving real solutions to consumers that have never been seen before, but are also created to address growing concerns of the modern day. For example; magnetic misting found in the REDUIT beauty devices and soon to be launched in the Swisswell health product range, is not only allowing better delivery of actives, but it is ‘touchless’ and allows application with no use of fingers, so caters to a whole new way to live in a COVID affected society.
Furthermore, adapting to the new age of consumerism means challenging the status quo when it comes to traditional retail and this has been addressed through the launch of the Wellfully Ambassador Program where product recommendations from experts will bridge the gap between consumer education, demand and accessibility for beauty and wellness products, while also keeping the beauty industry thriving with providing the real beauty professionals a platform to continue to prosper in doing what they love.
“As Wellfully technology and expertise powers our brands, we have the ability to change at a moment’s notice, from refining and improving products run by run, instant personalisation of our products to suit our brand partners and changing strategies to keep in touch with consumer demands and industry changes; this is both an asset and a saviour in these times. Furthermore, our continued new product development and R&D pipeline is buoyant where iconic and heritage brands have almost ceased in NPD means we are championing the change and filling the gap continually. Keeping our foundations healthy, our logistics and supply chain strategic, retaining the ability to make short and long term decisions to best suit our brands and keeping our commercial strategy ‘COVID friendly’ we will far surpass the challenges faced by many of the beauty brands in the market right now,” advises Paul.
To understand more on how Wellfully is striking fast and tactically for a new world of consumerism, you are invited to join the conversation on these topics at the Wellfully Investor Conference on Tuesday 23 February at 11am AEDT. Please email us at firstname.lastname@example.org to secure your place and receive the link to join the conversation.