Will a fashion retailer launching a beauty line succeed?

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As of 2022, there are approximately 114,841 beauty brands in the United States alone. Last year, the market was reported to have made about $511 billion in revenue. With those numbers in mind, it’s no surprise that celebrities, influencers, and dermatologists alike want a piece of the pie—but in recent years, another type of beauty brand creator: Fashion We see an increase in his label.
Fashion brands venturing into the beauty arena with their own cosmetics and perfumes is nothing new. Luxury fashion houses such as Valentino, Giorgio Armani, and Saint Laurent, for example, have also maintained their beauty over the decades (in these cases, from his 60s to his 70s, to be precise). Jenna Jackson, Head of Growth at CAVU Venture Partners, told POPSUGAR:
Still, since the early 2000s, more and more fast fashion brands have followed the trend.In 2009, Forever 21 launched a makeup line. Topshop followed shortly after, and Primark launched its own beauty line. In 2015, H&M Beauty was launched. In 2017 Boohoo created his Boohoo Beauty. Then we were shocked when Zara announced news of its own makeup line for 2021. This is by no means an exhaustive list, but the point stands.
From a business perspective, the motivation for brands to take the next step into the beauty space makes perfect sense. “Beauty products tend to have higher margins and higher repeat rates,” says Jackson. “Beauty products are also not trend-driven and are typically not subject to downward pressure on apparel due to seasons or trends.”
It’s too early to tell, but the COVID-19 pandemic may have sparked interest in beauty. “Those apparel brands have been more significantly disrupted by lockdowns, but we’ve seen beauty competitors show resilience and, in some cases, growth like skincare,” Jackson said. says. “It has certainly led to a degree of desire to diversify our product offerings while still having the drive to continue to meet the wants and needs of our customers.”
By putting skincare, makeup, or perfume within their walls, fashion retailers are more likely to become a consumer’s one-stop shop, which equates to more revenue for consumers. But in an already competitive and saturated market, are these fast fashion brands positioned to thrive?
“There tends to be a bias that beauty is ‘easy’ because there’s a high profit margin and fashion brands don’t have to worry about size, so they buy less inventory,” says Jackson. “While fashion brands have to constantly come up with new innovations, new product launches and drops, beauty’s development calendar can be much slower. That being said, beauty is a very tough business.” .”
“Fashion brands have to constantly come up with new innovations, new product launches and drops, while beauty’s development calendar can be much slower.”
Another factor to consider is that liking one brand’s clothing doesn’t necessarily mean liking that brand’s beauty products. “There’s a big difference in a consumer’s mind when it comes to buying a Zara dress to wear tonight versus deciding if a particular product is something they want to wear on their face every day. When it comes to beauty. , customers have a lot of choices, they’re looking for quality products,” says Jackson.
Only time will tell if these fashion brands succeed in making their forays into the beauty space, but if they do, it will undoubtedly be a lucrative move. The beauty industry is projected to bring in $784.6 billion in revenue for him in 2025, and could grow from there. According to Jackson, “Making great products that truly speak to what consumers want and have a deep reason to exist is the best way to survive in today’s climate.”
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