Future Of Indie Brands: Why You Should Start One Today
Independent beauty brands have become increasing popular over the past few years, mainly due to the demand it fills that existing beauty brands do not - and that is the use of clean and ethical ingredients. In short, Independent beauty brands - known as Indie - are not supported by corporations and are funded entirely by the founders, with some of them being handmade and/or vegan, and cruelty-free. It is due to social media and technological advancements that beauty companies, now, more than ever face fierce competition from independent labelled beauty brands that are growing on an upwards trajectory, which shows there is enough room for everyone to grow.
It is well known that big beauty brands in response to this are now buying out successful Indie brands in order to maintain their market share. Several other major corporations have adopted the ‘if you can’t beat them join them’ mentality. Estée Lauder and L’Oréal are two prime examples who are reaping the benefits of Indie beauty label success. In 2016 Estée Lauder purchased Becca Cosmetics for $200 million, and Too Faced for a reported $1.45 billion. Estée Lauder then went on to purchase a fragrance brand By Kilan in 2017. NYX Cosmetics caught the eye of L’Oréal in 2016 who acquired the business back in 2014, then later invested in IT Cosmetics in 2016 for $1.2 billion.
Why you should consider starting your Indie beauty brand
The beauty industry is significantly changing and is opening up many opportunities that you can capitalise on from today. It’s now easy to create a beauty brand and get it going on social media through marketing and influencer endorsements than before. Research has found that the primary reason people are turning to Indie brands is because they’re looking for natural plant-based products, or products that are tailor made to individual beauty needs, i.e skin concerns such as sensitive skin. As long as you know what need you’re fulfilling you should be good to go! It was also found that in 2017, funding deals increased by 9% and the most important trade deal made was from the natural skincare brand Yes To, which subsequently received a $56 million in funding by Viking Global Investors. You never know who could be investing in your brand in the future so don't fear the competition on the market now.
You can just image the shock beauty companies received after decades of investment into advanced formulations and innovative technology to later face competition from more simple and organic Indie brands that did not require half of that investment because of its simplicity. A good example to look at is Glossier – which started as an Indie beauty label – on a blog by Emily Weiss, which became successful because of its simple ingredients and clean nature, made popular through social media by millennials and has raised $34.4 million as a result. The key message here is that most brands you consume today, you wouldn’t know they started of an Indie labelled brand because it was purchased by bigger corporations – so start today!
The rise in subscription boxes and organic influence
Over the past few years beauty subscription boxes have gained popularity especially the company Boxycharm, which has made popular by influencers. It’s a customised beauty membership that contains full-size products worth $125 for only $25 per month. Another example is Meme Box, which is now worth $156 million. Those who subscribe to these boxes often do Instagram lives to showcase their audience what is in their box, which prompts their followers to checkout with the same experience, and this is another way in which you can grow your Indie beauty brand with organic influence.
In the past, the big beauty companies controlled their own retail channels whereas today power has shifted into the hands of the consumer who are now able to control what organic, clean and natural products to purchase, and this niche market will be worth an estimated $21 billion by 2024, so plant your seed today. This is because, as research has shown, consumers are more aware of the social and environmental impact their purchases have, and are thus turning to Indie labelled beauty brands because of their sustainability, locality and ethical sourcing in order to grow their market share. It seems that multinational beauty brands are threatened by Indie labelled brands, and it is also the reason why you should not fear starting today because Indie labelled brands will become the future as we lead to a greener planet.
If you want to learn more about how to grow your business, see our previous post: