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Beauty Companies Vowed to Step up Diversity and Inclusivity Efforts in the Wake of the Social Justice Movement, Beauty Inc Looks at What Firms Have Done So Far

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Beauty Companies Vowed to Step up Diversity and Inclusivity Efforts in the Wake of the Social Justice Movement, Beauty Inc Looks at What Firms Have Done So Far ISSUE#42 FEBRUARY 12, 2021 A Publication of WWD Accountability Matters Seven months after beauty companies vowed to step up diversity and inclusivity efforts in the wake of the social justice movement, Beauty Inc looks at what firms have done so far. For more, see pages 7 and 8. PLUS: Esi Eggleston Bracey on the CROWN Coalition and a spotlight on Black gaming influencers. ILLUSTRATION BY CAMILA GRAY THE BUZZ 2 FEBRUARY 12, 2021 Beauty Bulletin By the Numbers: Black- Owned Beauty Businesses On Yelp Data from Yelp shows heightened interest in Black-owned beauty businesses. BY JAMES MANSO THE PUSH TO BUY Black isn’t just hitting beauty products. Black-owned professional beauty businesses such as nail and hair salons, spas and barbershops have seen a lift in searches on Yelp, in spite of challenges to the professional sector caused by the pandemic. Diverse brand According to Yelp, searches for campaigns Black-owned service businesses garner higher skyrocketed 2,400 percent in 2020, engagement and and Black-owned businesses saw conversion, a 232 percent increase in review according to mentions. reports from Eyecue and “We’ve seen our user show MagicLinks. unprecedented interest in Black- owned businesses,” said Tara Lewis, senior vice president of community Report: Beauty Brands Returned to expansion and trends at Yelp. Although momentum has Posting Darker Skin Tones Over Holidays slowed — a statement from Yelp in August 2020 pointed to a 6,520 percent growth in searches for ¬ Data from Eyecue and diversity came from influencer- minimum in racial diversity, our MagicLinks suggests that racially and user-generated content, team has been able to, in most Black-owned businesses during the summer months — the company inclusive influencer campaigns with medium or dark skin tones cases, double that,” said Bryan credits consistent growth to its own perform better, with Black influencers accounting for two-thirds of this Mirabal, MagicLinks’ global creative diversity commitments. garnering a particularly high content during the 2020 holiday strategy and diversity, equity and “This year, we launched a engagement and conversion rate. season — up from half in 2019. inclusion lead. “It's been great searchable attribute that gives Following a spike in Instagram Eyecue applied its artificial to see from brands that there's businesses a way to identify posts featuring darker skin tones, intelligence technology capabilities interest, there's cooperation.” themselves as Black-owned,” and a steep regression that to analyze more than 170,000 Andrea Renee was the top- Lewis said. Here, the top cities and suggested the initial increase images from more than 80 beauty performing influencer in a Sephora sectors for Black-owned beauty was performative, beauty brands brands over the course of 2018 campaign run by MagicLinks. businesses in 2020. returned to posting darker skin through December 2020 for its Influencers of color garnered a click Tk Caption tones on their feeds throughout the newest report. The company rate three times higher than the TOP 5 CITIES FOR BLACK- holiday season, a new report from identified at least one skin tone on norm in the campaign, which drove OWNED BEAUTY BUSINESSES Eyecue found. 65,000 portrait and closeup images, an engagement rate 52 percent 1. atlanta Presence of dark skin tones in accounting for nearly 40 percent of above goal. Additionally, the view- 2. st. louis images grew by 25 percent over all of the content. through rate was 110 percent higher 3. philadelphia the holidays in comparison to The report was created in tandem than expected. 4. washington, d.c. 2019, according to Eyecue's report. with one from influencer marketing In a Giorgio Armani Beauty holiday 5. baltimore That growth was still less than the agency MagicLinks, whose diversity, campaign, Monroe Steele garnered significant increase that came equity and inclusion team recently a conversion rate three times higher BEAUTY BUSINESSES BY PERCENT GROWTH in June 2020, though it is higher implemented a 30 percent minimum than her peers', as well as the than the subsequent regression in requirement for racial diversityTk Caption of highest amount of engagement. 1. barber shops 1,122 percent October. The trajectory suggests talent in all campaigns. In its report, The campaign drove an 2. hair salons 499 percent that “brands (re)focus on inclusion the agency found brands that engagement rate of 8.5 percent 3. nail salons 164 percent and diversity when planning content incorporated greater racial diversity — twice the industry average — and 4. spas 55 percent for key times of the year,” Eyecue in their holiday campaigns saw a view-through rate of about Source: Yelp wrote in its report. better performance. 14 percent — four times the industry Time period: Year-over-year, 2019 to 2020. The largest increase in content “With instituting this 30 percent average. —Alexa Tietjen POWERED BY: WINNING CHINA MEANS PLAYING THE LONG GAME As China’s beauty regulations shift, GED helps beauty brands decode the state of play and navigate opportunities to build and scale. s China eliminates animal Jean-Philippe Benoist: Brands must be -testing on many beauty clear on the strategic vision for their brand A beauty brand’s entry products, ethically minded in China, and do their internal due dili- into China means beauty brands are eyeing gence around appetite for risk, must-haves connecting with some of the market in a fresh from their future partner, growth targets, the most discerning and light. Cruelty-free brands, marketing support, and fnancial, opera- engaged consumers. and especially indie tional and supply chain readiness. Abrands, have long looked forward to the Brands must understand their target potential opportunity. consumer, the products that will resonate Entering China means connecting with and why, and how their brand will be ex- some of the world’s most discerning and perienced and consumed. At the same highly engaged beauty consumers. With time, it is helpful to understand the drivers the beauty market projected to grow to of brand building – from seeding and or- $60 billion in 2021 it will be the largest ganic engagement on social media, selling beauty market in the world, according to through social commerce on RED, WeChat GED. Though entering China will not be and Weibo, and increasingly on Kuaishou, without its challenges as brands navigate Douyin and Bilibili, and eventually, harvest- cross-border distribution and launch to a ing on e-commerce platforms like Tmall broader audience. and JD.com . For cross-border beauty accelerator, GED, who has worked with brands includ- Fairchild Studio: How does GED work ing Caudalie, GlamGlow, and currently with with brands to empower an omnichan- Dr. Barbara Sturm, RéVive Skincare, Tocca nel experience? Perfume, T3, and Clark’s Botanicals, among J.P.B.: Pre-cross border, brand building others, to bring omnichannel experienc- was concentrated in a few specialty beauty es to life in China, commitment to brand chains including Sephora where GED building is paramount in the cross-border built several brands from the ground up in journey. GED knows that to create a mean- China including Caudalie and GlamGlow. ingful connection with China’s discerning Since the advent of cross border, the cus- Gen Z and Millennial audience, brands tomer journey takes place on digital with must build awareness by localizing brand the last mile experience managed by Tmall DNA and enhancing cultural relevance. and local resellers who deliver to their Fairchild Studio: When launchinG a Through education and social engagement, customers. Recently, with the emergence brand in China how does GED build GED continues to establish brands’ lasting of online to offine luxury beauty stores, a strategy to maintain its DNA while impact and long-term success. GED is creating a seamless online to of- enhancinG cultural relevance? Here, Jean-Philippe Benoist, found- fine experience for its brand partners in China’s beauty J.P.B.: Educating on brand story, value er and chief executive offcer of GED, luxury retail settings. proposition, ingredient story and product talks to WWD about the opportunity Now, with the elimination of animal market is performance through handpicked KOLs in cross-border distribution, de-risking testing, GED will help brands to prepare and infuencers who decode brand mes- market entry, and how to resonate with and position for brick-and-mortar retail. fueled by avid saging for their micro-communities of China’s beauty consumer. Initiating product registration is the frst Gen Z and avid brand followers. In turn, they gener- step in this process. Cross-border distri- ate brand momentum and drive growth Fairchild Studio: How do you work with bution allows brands that aren’t registered Millennial on leading social commerce platforms and brands to know if they are ready to in China to sell to customers in mainland social media platforms. launch in China? China. Distributors with warehouses within consumers free trade zones in China and Hong Kong Fairchild Studio: To that end, how are sell these brands on digital platforms such as seeking the social media platforms in China simi- RED, Taobao, and Tmall Global as well as lar or different than those in the U.S.? in specialty brick-and-mortar beauty stores innovation, J.P.B.: China’s leading social media plat- that integrate online to offine selling. foms optimize shopability. As a datapoint, quality and WeChat - China’s largest social messaging Fairchild Studio: What is China’s beauty platform – doubled total transactions in consumer looking for today? performance.” 2020 to $247 billion in and the goal is to J.P.B.: China’s beauty market is fueled by Jean-Philippe Benoist grow this further through short form videos avid Gen Z and Millennial consumers seek- Founder, chief executive to compete with leading short form plat- ing innovation, quality and performance.
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