In the cosmetics world, positioning is key to the success of any company. The market is saturated with products and brands, so it is essential to differentiate yourself and capture the attention of consumers. Here are five keys to achieving the best positioning for cosmetic brands in the market.
The global hair care market is estimated to experience a compound annual growth rate (CAGR) of 4% until 2025 (Mordor Intelligence data).
The same report reflects increased consumer concern about scalp health and associated problems such as thinning hair, hair loss, dandruff and scalp sensitivity.
This situation has boosted the demand for specialized hair care products.. That is why, from Starbrands, we want to share with our strategic partners the steps we follow to improve the positioning of the brands.
How to achieve the ideal brand positioning in each market
1.- Know your audience and what makes them unique from other markets.
The first step to good brand positioning is to understand who the product is aimed at. It is essential to conduct thorough market research to identify the needs, desires and preferences of the target audience.
This includes knowing their age, gender, socio-economic status, lifestyle and specific concerns related to beauty and personal care.
Cultural differences in personal care habits, such as preference for certain products or ingredients, must also be taken into account. On the other hand, it is possible that depending on race or ethnicity, more use may be made of specific products for a particular hair type.
Personalisation can also help consumers avoid spending money on products that are not suitable for their hair type or concerns.
Another determining factor for buyers is that brands have products that share their values, such as commitment to the environment and/or animal welfare.. All this can strengthen your value proposition.
Once you have a thorough understanding of your target audience, you can tailor your brand positioning strategy to effectively connect with them. This involves developing messages and value propositions that are aligned with their needs and desires, and creating a brand identity consistent with their lifestyle and aspirations.
This will lead to greater satisfaction and brand loyalty.
2.- Differentiate from the competition
As we mentioned, the cosmetics market is full of products and brands. To stand out and achieve a good positioning, it is essential to find a unique proposition that differentiates the brand from the competition.
This can be achieved through various elements, such as the formulation of innovative products, the use of natural and sustainable ingredients, the adoption of ethical practices in production and marketing, or the creation of a differentiated shopping experience.
Differentiation must be clear and meaningful to consumers, and must be communicated effectively through different marketing and communication channels.
Growing awareness of sustainability and animal welfare is also having a significant impact on the hair care market. Consumers are increasingly concerned about the origin of the ingredients used in these products, as well as the environmental impact of their production and disposal.
According to Market Research Future, the natural and organic cosmetics market industry will grow from USD 37,821.40 million in 2022 to USD 77,531.17 million by 2030, showing a compound annual growth rate (CAGR) of 9.49%.
To this report, we can add the data extracted by the consultancy firm Nielsen, which states that 70% of US consumers consider it important to make decisions in pursuit of sustainabilityand that 27% of them have incorporated related changes in their daily lives. These decisions are not affected by inflationary price increases.
In response to these concerns, many brands are adopting more sustainable practices, using natural and organic ingredients, as well as recyclable or biodegradable packaging. In addition, they are implementing more environmentally friendly production processes, such as reducing emissions and using natural resources responsibly.
In terms of animal welfare, consumers are demanding cruelty-free products, which means no animal testing during product development and manufacturing.
Brands aware of this demand are obtaining Cruelty-Free certifications, assuring consumers that their products are ethical and animal-friendly.
4.- Maintain quality and innovation
The positioning of a cosmetic brand also depends increasingly on quality and innovation. It is essential to maintain high quality standards in all aspects, from product formulation to customer service.
In addition, it is important to be at the forefront of trends and technological developments. Consumers are constantly looking for new products and solutions, so it is necessary to be aware of the latest research and developments in the industry in order to offer products that meet their changing needs.
Major industry players have taken note, and according to Cosmetics Europe, major cosmetics companies invest around 5% of their annual turnover in R&D.
In terms of quality, consumers are demanding that product promises are delivered. Therefore, brands that want to ensure their survival in the industry must prove the efficacy of their products.
5.- Find the right distributors
Finding reliable distributors who share the brand’s values and vision can contribute significantly to the brand’s success. These distributors will act as strategic partners responsible for bringing products to market and ensuring their availability in retail outlets.
It is important to conduct thorough research and selection of distributors, taking into account aspects such as their experience in the market, their distribution network, their logistical capacity and their reputation in the industry.. In addition, it is essential to ensure that the distributor has a good knowledge of the target market and can provide excellent customer service.
By establishing a strong relationship with reliable distributors, the cosmetic brand can benefit from their local expertise and knowledge, as well as their ability to expand the brand’s presence in different retail outlets.
It is important to establish clear and mutually beneficial agreements with distributors, including specific goals and objectives, as well as fluid and constant communication. This will help ensure efficient and effective distribution of products, which in turn will strengthen brand positioning in the market.
Taken together, by applying these five keys to achieving the best cosmetic brand positioning in the marketplace, companies can stand out in a highly competitive environment and capture the attention and preference of consumers.
If you don’t want to be left behind in all this, Starbrands offers you our partner program, where, whether you are a retailer or a distributor, we can grow together.
Would you like to know more about it? We encourage you to contact our team and answer any questions you may have.