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Global Trend Report Lip that define 2020 for Millennials and Gen Z

by 0. Overview 03

1. Introduction 05

2. Method 06

Content 3. Country for Millennials and Gen Z 3.1 Millennial Lip Color Analysis by Country 08 3.2 Gen Z Lip Color Analysis by Country 09

4. 2020 Lip Color Trend Forecast 4.1 2020 Lip Color Trend Forecast for Millennials 12 4.2 2020 Lip Color Trend Forecast for Gen Z 12

5. Country Texture Analysis for Millennials and Gen Z

5.1 Millennial Lip Texture Analysis by Country 14 5.2 Gen Z Lip Texture Analysis by Country 15

6. Conclusion 17

02 Overview

Millennial and Generation Z consumers hold enormous influence and spending power in today's market, and it will only increase in the years to come. Hence, it is crucial for brands to keep up with trends within these cohorts. Industry leading AR makeup app, YouCam Makeup, analyzed big data of 611,382 Millennial and Gen Z users over the course of six months. Based on our findings, we developed a lip color trend forecast for the upcoming year that will allow The analysis is based on brands to best tailor their marketing strategy. According to the results, will remain the most popular color across all countries and age groups throughout 2020. The pink shade is the top favorite among Millennials and Gen Z across all countries. Gen Z generally prefers darker 611,382 , while millennial consumers lean toward brighter shades. The second favorite shade of pink among Gen Z in Brazil, China, , and the US is Ripe . In and Millennial and Gen Z users’ tryouts of lip color and texture in India it’s Sangria Pink and Vivid Pink, respectively. The third among Gen Z in Brazil, China, and Japan is Vivid Pink. In the US it’s Lollipop Pink and in France – Ripe Raspberry. The second among Millennials in Brazil, France, and the US is Ripe Raspberry. In India and Japan it’s Vivid 6 countries Pink, and in China – . The medal goes to Wild shade of pink in China, India, and Japan. In Brazil the third place belongs to Vivid Pink, in France to Sangria Pink, and in US, France, China, the US to Lollipop Pink. Shades of are worth keeping an eye on in 2020, especially in the US and China. Looking at texture preferences, matte tryouts are a high performer across all countries Japan, Brazil, India and cohorts, outside of Japan, India, and Brazil, where users showed a distinct preference for sheer lip textures.

03 TOP 3 Colors for 2020 by Country

Millennials Gen Z

1st 2nd 3rd 1st 2nd 3rd US China Japan France

Brazil The top 1 shade Cranberry Pink #E0467C India 1 Introduction

Millennials have strong potential buying power, so it holds that brands focus their strategic marketing efforts on this cohort, while not overlooking Gen Z, the next generation. Through the power of big data from Perfect Corp.’s YouCam Makeup app, an understanding can be gained of Millennial and Gen Z consumer shopping preferences within makeup shades and textures across different countries. This analysis gives us unique insight into what Millennial and Gen Z shoppers love, focusing brand efforts to attract and convert these consumers. Through analysis of Perfect Corp.’s color and texture data over six months, July – December (H2 2019), we have identified the colors and textures favored by the Millennial and Gen Z cohorts in the US, India, Brazil, France, Japan, and China and made predictions regarding lip color trends for the upcoming year. The focus was on virtual try-ons for lip color and texture across six countries including the US, France, China, Japan, Brazil and India.

This provides insight for brands and businesses to help them tailor their strategy towards these key cohorts in different countries.

“Millennial Spending Habits and Why They Buy.” https://www.forbes.com/sites/forbesbooksauthors/2019/05/01/millennial-spending-habits-and-why-they-buy/#7cb885e5740b “How To Win Over Generation Z, Who Hold $44 Billion Of Buying Power.” Forbes.com https://www.forbes.com/sites/jiawertz/2018/10/28/how-to-win-over-generation-z-who-hold-44-billion-of-buying-power/#7908a72b4c13

05 2 Method

The analysis organized Given the current buying power of Millennials and the future purchasing power of Gen Z, this research focused on YouCam colorscolorscolorscolors Makeup Users ages 15-24 (Gen Z) and 25-34 (Millennials) across 5,9905,9905,9905,990 six countries - US, France, China, Japan, Brazil, India - during the second half of 2019. from the app into

To organize the 5,990 colors from the app , the K-means clustering machine learning algorithm was used to categorize the individual colors into six general color groupings: pink, nude, , red, , and . An added grouping of dual exists for 281 two-color combination tryouts for the period. The grouping named “Others” was assigned to outlying colors that were distant from the main color groupings. After color grouping, general color groupings the top color try-ons in H2 2019 by each group (Millennials and 6666 Gen Z) in each country were identified. Note: tryout is classified as each time the user taps on a color in the app. Texture tryouts 1 2 3 were measured by the number of times users have tapped on Nude Brown Orange that texture to try it on in the period of H2 2019. shades shades shades

Analysis was made of color preference by cohort (Millennial/Gen Z) across countries, as well as texture by cohort across 4 5 6 countries. Finally, individual country highlights were made for Pink Red Purple shades shades shades color and texture preferences for Millennials and Gen Z.

06 3 Country Color Analysis for Millennials and Gen Z 3.1 Millennial Lip Color Analysis by Country

Millennial Lip Color Preference by Country Pink was a clear favorite among millennials in all countries, in particular, and bright resonate the most, following the global trend of “Millennial Pink”. Millennials in Japan (55% of tryouts), India (57% of tryouts), and Brazil (60% of tryouts) 46.4% 59.6% showed the most love for pinks, specifically brighter hot pink 54.9% 48.7% 56.6% shades. 50.2%

27.8% 22.8% 20.8% 15.6% 14.3% 12.5% 8.4% 6.4% 3.5% 2.9% 5.3% 5.9% US China Japan France Brazil India i Pink Shades Nude Shades Red Shades adA Clear Winner among Millennials in all Countries US and Japanese millennials showed a particular preference for nude lip colors, with nude shades accounting for 28% of tryouts in the US and 23% in Japan. In contrast, Chinese millennials preferred pink, orange and purple shades, with pink accounting for 22% of all color tryouts; other users favored deep ginger colors.

Interestingly, purple shades, particularly brighter rich royal , were popular among French millennials, accounting for 13% tryouts.

08 3.2 Gen Z Lip Color Analysis by Country

Gen Z Lip Color Preference by Country Pink lip colors were a clear favorite across all countries for our Gen Z users too, with India (58% of all tryouts in the country), Brazil (57% of all Brazil tryouts), and Japan (53% of all Japan tryouts) users showing the highest preference for pink. 43.9% 44.5% 46.9% 52.5% 57.0% 58.0% Though Chinese Gen Z still had a preference for pink, they showed a distinct preference for orange shades (accounting for 13% of all tryouts in China), where other countries such as the 23.3% 29.3% 17.4% US, France, and Brazil showed a preference for nude. US Gen Z 18.0% 15.8% 12.8%

tried nude shades almost one-third of the time, while French Gen 15.8% 10.6% 10.3% 5.6% 7.8% 7.2% Z tried nude shades almost a quarter of the time. As much as Brazilian Gen Z loved nude colors, (16% of tryouts) they also US China Japan France Brazil India Pink Shades Nude Shades Red Shades

loved trying purple shades half as much (7% of tryouts), considerably more than other countries. The Top Color across all Countries ik for Gen Z users Japanese and Chinese Gen Z are more likely to try dual tone lip shades, with Japanese Gen Z accounting for nearly 7% dual tone try ons and Chinese Gen Z accounting for 4%. also proved to be popular among Gen Z in France (16% of color tryouts) and China (11% of tryouts) with Brazil and India following. In contrast, Gen Z in the US showed the least preference for reds out of all the countries.

09 what 4 2020 Lip Color colors Trend Forecast will be France US China Japan India

Brazil Pink colors will remain popular among Millennials & Gen Z across all countries

increased interest for Millennials Red Red IndiaIndia iincreased interest for both steadily increasing among Millennials increased interest for Millennials increased interest for Millennials and the trend will continue into 2020 Millennials & Gen Z Brown Orange Orange slowly gaining popularity among the preference for nude shades is the overall preference for orange is still low, Gen Z are willing to experiment Japanese Millennials & Gen Z, and increased interest for Millennials especially strong in China among Gen Z but the brands should keep this trend in mind more with orange shades certainly a trend to watch in 2020 USUS ChinaChina FranceFrance BrazilBrazil JapanJapan

11 4.1 2020 Lip Color Trend 4.2 2020 Lip Color Trend Forecast for Millennials Forecast for Gen Z

Based on our analysis, we identified the following lip color trends for the Pink shades will retain the top among Gen Z across all upcoming year. Pink will remain popular among Millennials across all countries in 2020. The preference for pink is particularly strong countries. Especially in the US, China, and India, pink shades have and growing in the US, India, and Brazil. In Japan, tryouts of consistently grown in popularity over the past six months. In China, red lip pink lip colors have slightly decreased in the last few months, color tryouts have been steadily increasing among Millennials and we predict but there is no reason to believe that pink will lose its popularity that this trend will continue into 2020, at least during winter/spring months. in 2020. It will remain the favorite. Following in Millennials’ This phenomenon could be seasonal, attributed to the winter holiday season footsteps, Gen Z consumers in Japan also demonstrate an during which women prefer brighter, festive colors. The top three preferred increased interest in brown lip shades, a trend worth in China are , , and Cherry Red. In Japan, monitoring in 2020. Similarly to Millennials, Gen Z in the US has popularity of the dual tone lip shades has been on the rise and the trend is shown an increased interest in red shades, despite overall low likely to continue in 2020, though overall preference for dual color will most popularity of the color. Red tryouts have increased consistently. likely remain insignificant. Also, brown shades are slowly gaining popularity We predict that the trend will continue in 2020 and is worth among Japanese Millennials, certainly a trend to watch in 2020. In the US, monitoring. In China, the color red has also grown in popularity despite overall low preference, red and orange color tryouts have been on among Gen Z. As with Millennials, this is most likely a seasonal the upward trajectory and are worth keeping an eye on in 2020. Perhaps, this trend that will continue into the first half of 2020. Also, nude is due to the fact that American women are daring and adventurous when it color has solidified its position as the second favorite among comes to beauty products. They are willing to experiment and try new, Gen Z and will most likely secure this place throughout 2020. unconventional looks. In France, India, Brazil, and the US, we have seen an The preference for nude shades is especially strong in China. In increased interest in dual tone tryouts in the recent months, despite overall Brazil, Gen Z are willing to experiment more with orange low preference. It’s a sign that consumers are open-minded, receptive and shades. The overall preference for orange is still low, but the brands can appeal to their curious side. Overall, in the upcoming year, we brands should keep this trend in mind. French Gen Z has don’t anticipate any surge in popularity among nude, brown, and purple demonstrated more curiosity towards dual lip shades; perhaps colors across all countries due to the perpetually flat and insignificant results. it will become the latest craze in 2020.

12 5 Country Texture Analysis for Millennials and Gen Z 5.1 Millennial Lip Texture Analysis by Country

Matte was the preferred texture across all countries, apart from Japan. In both Brazil and India, millennials led matte tryouts, accounting for 55% of tryouts. In contrast, Japan millennials preferred sheer textures, with satin taking second place. These two textures accounted for 70% of all tryouts among millennials in Japan.

Millennials from India and Brazil showed a high preference towards sheer textures with matte following. Sheer textures accounted for 29% of tryouts in Brazil and 26% in India. Matte and sheer tryouts accounted for 84% of total tryouts in Brazil and over 82% of tryouts in India.

Gloss was not as popular, accounting for less than 10% of tryouts in every country. US millennials preferred gloss the most among all countries.

Top 1 & 2 Lip Texture for Millennials

59.6% 56.6%

50.2% 54.9% 48.7% 46.4%

Matte 15.6% 27.8% 14.3% 22.8% 20.8% 12.5% Satin Sheer US China Japan France Brazil India

14 5.2 Gen Z Lip Texture Analysis by Country

Interestingly, matte appeared more popular among Gen Z. It was the top texture in Brazil, India, China, France and the US, accounting for 65% of tryouts for Brazil and 62% for India. However, Japan Gen Z showed an overwhelming preference for sheer texture with 42% tryouts.

US and Chinese Gen Z proved to experiment with textures, showing higher metallic and holographic texture tryouts as compared to other countries. In addition, US and Japanese Gen Z favored shimmer more than other countries, while France tried shimmer the least. Top Lip Texture Top 1 & 2 Lip Texture for Gen Z Matte

64.8% 62.0% 46.8% 41.9% 47.2% 46.0%

Matte Satin 27.4% 21.0% 24.7% 24.8% 19.1% 21.1% Sheer US China Japan France Brazil India

15 6 Conclusion 6 Conclusion

Through analysis of the H2 2019 data of Millennial and Gen In regard to texture preferences, matte was the top texture Z YouCam app users, we can see a clear preference for among both Millennial and Gen Z users, with Gen Z pinks in all countries and predict that pink will remain the showing a stronger interest in matte texture than Gen Z have a distinct most popular color across all countries and age groups Millennials. India and Brazil Millennials and Gen Z showed preference for throughout 2020. Millennial and Gen Z users in Brazil and the highest preference for matte finishes, as compared to India showed the highest preference for pink color tryouts all the other countries. In contrast, both Japanese Deeper Pink among all countries. However, it is clear that there are Millennial and Gen Z groups showed a distinct preference differing preferences between Millennial and Gen Z across for sheer texture over matte. Chinese Millennials and Gen age groups and across countries. Overall, Gen Z consumers Z users also showed a strong preference for satin, with have a distinct preference for deeper pink shades, whereas Chinese Millennials trying satin texture more than any Millennials show a tendency towards lighter “Millennial Pink” other country. US Millennials and Gen Z were more likely shades. Nude lip colors continue to be a top choice among to experiment with lip textures trying metallic and both cohorts in 2020, with Millennials showing a stronger holographic styles more than any other country. Millennials show a preference for nudes as compared to Gen Z. Within these tendency towards age groups, US users showed a clear preference for nude lip From this analysis it is clear that there are contrasts and colors over other countries, with US Gen Z loving nude lip differences between age groups and across countries. Millennial Pink colors the most. In stark contrast, Chinese Millennials and Since Millennial and Gen Z users have distinct color and Gen Z showed a preference for vibrant orange colors, more texture preferences it is important for brands to take note than any other country. However, Chinese and Japanese of these contrasts and differences in regards to the Millennials and Gen Z were more likely to try out duo lip specific groups’ buying power. In particular, brands need shades as compared to any other country. Millennials and to pay attention to the differences between Millennial and Gen Z in France differed, while Millennials chose purples Gen Z users across different countries and tailor their more than red shades, Gen Z preferred reds over purples. strategy towards these specific preferences.

17 Key takeaways:

Pink will remain the most popular color across all countries and age groups throughout 2020.

In US, Red has been on the upward trajectory among Millennials and Gen Z and the trend is worth keeping an eye on in 2020.

In China , Gen Z and Millennial users love lips more than any other country.

In France, Millennials showed a preference for Purple shades . In contrast, Gen Z showed a preference for Red more than any other country.

In Brazil, Millennials love Purple and Gen Z love Orange . They are willing to experiment more and more with those shades, a trend to keep in mind.

In Japan, both age groups demonstrate an increased interest in Brown lip shades, a trend worth monitoring in 2020.

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