Was it Far-Fetched to Launch Beauty?

Hi friends,

In the UK and US many retailers have seen the opportunity to expand into Beauty, as the Beauty category is buoyant in a recession or cost of living crisis and we are seeing a downturn in Fashion sales, however, it’s not as easy as a lot of multi-brand or Fashion retailers might think.

Beauty retailing online is very competitive, and consumers act on different shopping behaviours to Fashion. Having worked with many multi-category retailers that trade across e-commerce and bricks and mortar stores, it’s different from trading and scaling a pureplay Beauty retailer. For example, pureplay Beauty retailers have many Beauty functionalities integrated into websites, making it easier for shoppers to navigate and find the products they want, as well as being rewarded for purchasing. This is also a challenge for multi-category retailers, which we’ve seen with various retailers such as department stores not being as evolved in Beauty customer experience, for example.

I can see various challenges around the FARFETCH model; it’s important for a Beauty retailer to have a point of difference to other retailers, as they are selling a house of brands. This can be a number of things such as the curation of brands, the content they provide to help people purchase, exclusive product and brand launches, loyalty programmes, gift with purchases, beauty boxes etc. It takes time to build up an authority in the Beauty space and to encourage customers to shop with them over other Beauty retailers.

Farfetch did see a need to create a point of difference before launching into Beauty, which is why they acquired VIOLET GREY before launch. This will have helped with onboarding brands quickly and creating an editorial point of view but in my opinion, they have struggled with the execution of this. Farfetch lost sight of how these elements integrated to a wider scale and to a broad consumer base.

It can take time for Fashion retailers to onboard some of the more dominant Beauty brands, which ultimately gives authority and build trust within the Beauty retail space, but also gives a reason for new customers to go and browse and shop with that retailer, because they house established brands that shoppers already buy and aspire to, as well as Indie brands.

With existing customers, Farfetch may have had difficulty with their marketing and strategy; sending emails and nudges to customers to buy Beauty from that retailer, when historically they had been buying Fashion on a regular basis. To a certain extent, this may take space and revenue away from a well-performing category with existing customers, as opposed to further driving sales, as well as the entry price points for Beauty and Fashion being so different. This customer transition takes a lot longer than retailers think.

It’s not necessarily the same customer shopping in both categories with the same retailers, which most brands take for granted. Beauty retailers need to create added value and experience for customers, to get them to spend their money with them, and a number of these different levers give a point of view.Read my thoughts and more in the recent articles covered by?Beauty Independent ,?LinkedIn News ?and?Cosmetics Business .

What we can Learn from the Downfall of Wilko

I was on BBC Essex Radio sharing my thoughts on the downfall of wilko . What are your thoughts…. Not surprising or sad? Do you think it can be saved? Let me know what you think in the comments on this post and listen?HERE

Is Retail Growth Your Biggest Focus?

If you missed the “Trading with Retailers” events, there is a replay of the webinar available for replay now?WATCH NOW

I announced on this webinar a new group programme, it’s the most accessible and intimate way to work with me yet! If you are a brand trading with one or more major retailers but know you could be making more sales this retail mastermind is for you. Some of the results from previous clients I have helped have been:

• From declining year-on-year sales in key retailers to pulling back the sales deficit and consistent growth
• Negotiating improved terms and marketing support
• How to approach tricky conversations with buyers and have a “win-win” solution
• Protect the DTC business and please buyers
• Pitched and launched with new retailers
• Improved wholesale profit by reducing smaller retail partners through a cost analysis
• Saved money by spending budget on the right areas
• Saved time by making quicker decisions

We kick off in September and there is a super early bird rate at the moment! Apply now to take advantage of this and we can jump on the phone and speak more about how the retail mastermind am opening up some 15 min chats to talk through what your main business goals are and then we can see if the mastermind is aligned for you.

READ MORE HERE or BOOK A CALL HERE

Dates for Your Diary

September is a busy month for events, I hope to see you at one:

• 13-14 September - Retail leaders join me as I chair the eTail event in September, apply to attend?HERE
• 21 September - I will be hosting “Consumer Behaviour Trends - How to increase customer engagement” at The Packaging Show register for free?HERE
• 27 & 28 September - on Thursday I will be speaking on “?Consumer Behaviour Trends: Strategies to Accelerate Retail Brand Growth” and hosting VIP sessions on both days on “How to Build a Personal Brand” at?Ecommerce Expo register for free?HERE

Finally let me know how you are, summer is a great time to reflect and I know many are gearing up for a big Q4. Drop me a message and tell me what your one big goal is for the rest of the year, I would love to hear from you.

Speak soon

Wizz x