In an interview, Kline’s beauty experts reveal some insights from the new Beauty’s Most Buyable Brands: Analysis of Booming Independent Brands in the United States report that focuses on independent beauty brands.
Q: Why is the subject of independent or “indie” brands so relevant?
A: Indie brands have been making headlines in the industry as they pose a challenge and threat to the large cosmetics giants. In fact, this subject is so relevant that a first-ever expo dedicated to independent brands was held in New York City last month.
Q: What are some of the findings from your research?
A: We found that while the 84 independent companies that were analyzed in our Cosmetics & Toiletries USA report comprise a mere 3.6% of the market in 2014, their growth averaged almost 15% from 2009 to 2014 – over four times the growth of the industry in the same timeframe.
These brands offer value-oriented products and are highly innovative and engaging with consumers, which makes them sought-after acquisition targets by major cosmetics giants and private equity firms.
Q: What has sparked consumer interest in independent brands recently?
A: These brands have significantly increased visibility in the industry through social media marketing. Previously, the major companies used to have an edge over independent brands because of their hefty advertising budgets. However, the playing field has been leveled, and indies are able to effectively market themselves through social media, such as Instagram, YouTube, Facebook, Pinterest, and Twitter.
Q: Is social media marketing a focus of the report?
A: Somewhat. We have collaborated with Tribe Dynamics, a company that specializes in analyzing and reporting on brands’ Earned Media Value (EMV) on social media, to provide a unique view on how social media is impacting sales for indies. An analysis of each brand’s EMV is provided for the fastest growing independent brands.
Q: Any last thoughts on the report?
A: This is an important piece of research that underscores the power of these brands and describes factors leading to success. The report provides an analysis of the dynamics of indie brands, success factors, discusses mergers and acquisitions, profiles 10 of the fastest-growing Indies including Younique, EOS, and IT Cosmetics, and presents an outlook on the market.
