How Many SKUs Should You Have in Your Cosmetic Brand Line-Up? A Guide to Strategic SKU Management

There is an ongoing discussion on how many SKUs a beauty brand should have. Very often the brand founders have a strong idea, but limited resources and they start with just ONE or a few products. At the same time the distributors and retailers find it difficult to sell such brands. Another example is when a brand has hundreds of SKUs, but only 50 of them generate the largest part of the business. So, what is the ideal size of the assortment? What is the magic number? Is 12 SKUs too low to take sufficient shelf space? Is 1200 SKUs too high to manage stock turnover effectively??

In today's bustling beauty industry, determining the right number of SKUs is as crucial as any product formulation or marketing strategy. Whether you’re a boutique brand with a single hero product or a global powerhouse with thousands of offerings, managing your SKU line-up strategically can make or break your brand. Here’s an in-depth look at optimal SKU strategies, from single-product stars to massive portfolios with over 1,000 SKUs.

1. Single-Product "Hero Brands"?

Pros:

• Easier brand focus and storytelling.
• Simplified inventory and operations.
• Clear messaging that can drive brand identity and loyalty.

Cons:

• Difficulty to enter physical retail. Limited product means fewer ways to draw attention, making every display placement critical.?
• Limited opportunity for repeat purchase once the novelty wears off.
• Risk of consumer fatigue with only one option.

Preferred Channels: Direct-to-consumer (DTC) online channels, pop-up shops, concept stores, B2C trade shows and markets, social media, and influencer marketing.

Best Categories and Price Positioning: These brands are often in skincare or haircare. Positioning is usually mid-to-high end, appealing to consumers seeking innovation or uniqueness.

Expert Advices:

• Emphasise storytelling and use high-impact influencers to build excitement. Treat your product as an "exclusive" experience, constantly improving your communication and commercial strategy based on customer feedback.
• Visuals should emphasise the unique selling point. Choose the colours that make the brand pop.
• Focus on creating high-impact minimalistic glorifiers that make the product look iconic.
• QR code on the packaging and visual merchandising materials is a must have to tell the brand story in a self-service environment.?
• Use a “bring a friend” promotion mechanics to attract new customers.?

Examples:

Bonjout Beauty has started with just one product - Le Balm Skin Savoir Solid Serum packed with 68 active ingredients and delivering 6 skin benefits.?

Womanology has developed INTIMA RESCUE - innovative oil for vulva and perineum that relieves pain, irritation, itching and dryness in the most sensitive and delicate areas of the body.?

Fagocare is offering a modern, innovative gel designed for skin care with signs of acne and positioned in a selective price segment.?

2. “Focused lines” - Brands with Less Than 10 SKUs

Pros:

• High focus on quality and message with manageable product diversity.
• Easier to control inventory and adapt quickly to market feedback.
• Potential to build a signature look or feel.

Cons:

• Limited room for experimentation.
• May not fully meet the needs of a broader customer base.
• May be difficult to secure sufficient shelf space

Preferred Channels: DTC online sales, small boutiques, concept stores, pharmacies, in some cases specialty stores.

Best Categories and Price Positioning: Typically seen in high-end to luxury skincare and makeup with a focus on specific results or standout packaging. Quite standard lineup for perfumes. Can work pretty well with men's skincare or children's cosmetics.?

Expert Advices:

• Maximise consumer engagement and feedback to keep improving the core line-up. Use cross-selling tactics to build complete routines around each SKU, emphasising why each item is essential.
• Emphasise storytelling in partnership with influencers to build excitement.?
• Communicate actively positive customers’ reviews to build credibility.?
• Consider showcasing a “complete routine” or “essentials bundle” approach both in communication and merchandising to create context and highlight synergy between products.
• If such a brand enters physical retail, where larger brands dominate shelf space, small SKU selection requires creative grouping and visually striking displays that tell a clear brand story.?

Examples:

DRUNK ELEPHANT initially launched with a limited range, focusing on “clean-clinical” skincare products with active ingredients that encouraged full regimen use.

MaGéAu Naturel offers a complete collection of products, that includes everything from natural vegan skincare and natural hair care to natural body care. All the products are 100% eco-friendly and are easily integrated in one beauty routine.

Nero Skincare and Clyde For Men propose the beauty routines developed specially? for men. Both brands operate in the natural and effective skincare field.

3. "Curated Collections" - Brands with 10-30 SKUs

Pros:

• A balanced portfolio that allows for variety without overwhelming consumers.
• Enough diversity to attract different customer segments and encourage repeat purchases.

Cons:

• Requires efficient inventory and supply chain management.
• Harder to focus marketing on a single story.
• Still can be challenging to get significant visibility in physical retail, and at the same time it can be challenging to balance space and make each item stand out.

Preferred Channels: DTC, specialty retailers, pharmacies, e-commerce multi brand platforms and social media.

Best Categories and Price Positioning: These brands often offer a complete skincare or haircare routine or limited makeup range, priced in the mid-range to luxury tier.

Expert Advices:

• Use bundle offers and complementary product pairings to boost the appeal.?
• Implement loyalty programs or exclusive offers for return customers who repurchase entire routines.
• Create display sections based on product categories or targeted results (e.g., “hydration,” “anti-aging”), allowing customers to explore different needs while keeping the brand identity strong. Seasonal and thematic displays can also boost interest in a broader SKU range.

Examples:

RARE Paris is proposing 4 instant-effect lines targeting the 4 needs encountered by all types of skins: purify, nourish, soothe, regenerate.?

Klytia Paris is inspired by scientific research into chronobiology, offering a range of innovative skincare products designed to meet your skin's specific needs at every moment of the day.?

4. “Expanded Ranges" - Brands with 30-100 SKUs

Pros:

• Sufficient variety to cover a wider array of customer needs and product categories.
• Can increase customer lifetime value with products across multiple needs (e.g. Hydration, Anti-age,? Brightening) and even categories (e.g., skincare, haircare, makeup).

Cons:

• Complex inventory management.
• Marketing must segment audiences carefully to avoid confusing or overwhelming customers.
• Balancing visibility for each SKU without overwhelming the customer is a challenge, especially if some products end up hidden in crowded displays.

Preferred Channels: Major beauty retailers, pharmacies, DTC online channels, and department stores.

Best Categories and Price Positioning: All price ranges, practically every category.

Expert Advices:

• Introduce seasonal products to keep the line fresh.?
• Use data to understand customer preferences and tailor offerings to meet demands, and create exclusive collections for specific channels.
• Use modular displays to adapt quickly for different seasons or promotions.?
• Group products by categories or routines to guide customers through the brand’s offerings.?
• Digital screens or interactive features can help customers find specific SKUs without needing every product physically displayed.

Examples:

Fenty Beauty , launched by Rihanna, is a great example with around 40 SKUs in its early stages, covering a full spectrum of skin tones and focusing on inclusivity.

The Ordinary offers solutions for different skin concern putting the power of ingredients first.?

L'OCCITANE Group (B Corp?) offers a choice of skincare and haircare routines as well as gifting opportunities.?

5. “Complete Ranges” - Brands with 100-300 SKUs

Pros:

• Broad portfolio allows targeting of diverse demographics and needs.
• Greater potential for collaborations and seasonal collections to maintain interest.

Cons:

• Risk of product redundancy and inventory challenges.
• Higher marketing costs to promote multiple products and lines.
• With so many SKUs, there’s a risk of creating cluttered, chaotic displays that may overwhelm the customer

Preferred Channels: Large beauty retailers, online channels, department stores, pharmacies and brand stores.

Best Categories and Price Positioning:

All price ranges, typically brands across makeup, skincare, and body care, appealing to a wide customer base.

Expert Advices :

• Focus on streamlining offerings based on SKU performance.?
• Regularly refresh product lines based on seasonal trends.?
• Collaborate with beauty influencers to showcase versatility.
• Employ large, segmented displays, breaking down products by categories, routines, or skin types to make the selection manageable.?
• Rotating focus products in high-traffic areas can maintain interest.?
• Digital displays can help showcase items that aren’t prominently displayed.

Example:

Bioderma is proposing a wide range of derma cosmetics for the entire family.?

6. "Comprehensive Collections" - Brands with 300-1000 SKUs

Pros:

• Massive selection caters to nearly every customer preference, making the brand a one-stop-shop.
• Higher cross-selling opportunities.
• There is always a story to tell - easy to build aways on communication strategy.

Cons:

• Increased potential for product cannibalization.
• Extremely complex supply chain and inventory management.
• The vast number of SKUs makes it nearly impossible to feature every product. Retail team must carefully decide which items get prime placement.
• Difficult to sell in a non-assisted environment.?

Preferred Channels: Primarily major retail chains, beauty stores, department stores, free standing brand stores, e-commerce, and online marketplaces.

Best Categories and Price Positioning: Brands here range from mass to premium, with highly segmented product lines (e.g., anti-aging, brightening, sensitive skin). More often can be found in makeup or as a multicategory brand.?

Expert Advices:

• Implement strong SKU rationalisation strategies to continuously phase out underperformers.?
• Emphasise product categories that consistently perform well and build loyalty with regular product refreshes.
• Highlight bestsellers and hero products at the forefront, supported by themed or seasonal displays.?
• Digital screens or QR codes can direct customers to a larger catalogue online, offering a seamless blend of in-store and digital shopping for hard-to-display items.
• Develop multiple lineups for different channels, store types etc.?
• Develop multiple variances of? visual merchandising and store design.
• Invest into retail and product education. Work on employee loyalty.

Example:

Charlotte Tilbury Beauty manages a vast number of SKUs across makeup, skincare and fragrance, constantly innovating within each line while staying attuned to market demands.

7. "Powerhouse Brands" - Brands with Over 1000 SKUs

Pros:

• Complete product dominance, capable of meeting any conceivable beauty need.
• High potential for international market penetration and mass appeal.
• Relatively easy to create an immersive brand experience and build strong brand awareness.?

Cons:

• Challenging to maintain brand identity and quality across so many products.
• Immense marketing and operational costs to sustain SKU volume.
• High SKU volume demands extensive shelf space, making it crucial to balance visibility for each product without overwhelming the consumer.
• Challenge to find right retail space particularly in the multi-brand environment.?
• Difficult to sell in a non-assisted environment.?

Preferred Channels: Large retail chains, e-commerce, and brand stores.

Best Categories and Price Positioning: These brands span budget to selective, covering almost every beauty category (normally as a multicategory concept).

Expert Advices:

• Invest in tech solutions to manage SKUs, implement AI-driven recommendations for consumers.
• Conduct periodic SKU assessments to cut underperforming products.?
• Use market research to localise product offerings to meet regional preferences and trends.
• Create brand zones or mini-boutiques within large stores, helping customers explore by category.?
• Develop multiple lineups for different channels, store types etc.?
• Develop multiple variances of? visual merchandising and store design.
• Invest into retail and product education. Work on employee loyalty.

Example:

MAC Cosmetics is known for its extensive product range within this SKU count, focusing on regular seasonal and celebrity collections that drive traffic and excitement.

In conclusion, there’s no one-size-fits-all approach to determining the right number of SKUs for your beauty brand. Each SKU range brings its own unique challenges and opportunities. Understanding these dynamics allows you to maximise your brand’s impact and longevity, from a single standout product to a multi-category, thousand-SKU powerhouse.