Selling Makeup Like Hot Pies! Tips and Tricks for Success in the Cosmetics Business

Makeup is a very interesting category. According to Precision Reports, colour cosmetics business worldwide was accounting for $80 billion (19% of total cosmetics market). Often it is an impulse purchase (one more lipstick is a nice and not expensive gesture to pamper yourself). At the same time the category often is perceived as a difficult one, complex to manage, with limited profitability. Where is the truth? I’ve spent more than 10 years working with make-up including MACCOSMETICS MACOFFICIAL , Estée Lauder , TOM FORD BEAUTY , and I am happy to share my list of “magic ingredients”? to succeed in the makeup business.

In the bustling world of cosmetics, capturing the hearts (and wallets) of consumers requires more than just offering high-quality products. It’s about understanding the consumer, crafting a memorable experience, creating a desire, and consistently staying ahead of trends. I’ve put in place a comprehensive guide on how to sell makeup like hot pies, covering essential aspects like assortment strategy, consumer engagement, visual merchandising, retail experience, and social media. Here you are!

1. Assortment Strategy: Curating a Winning Line-up

A well-planned assortment strategy is crucial to attract a diverse range of customers. Here’s how to build a winning line-up:

Diverse Range: Offer a variety of products that cater to different skin tones, types, and preferences. Include basics (foundation, lipstick, mascara) and trend-driven items (glitter eyeshadow, bold eyeliners).?

Trend Integration: Stay ahead by incorporating emerging trends. Keep a pulse on fashion shows, influencers, and social media to forecast what’s next. Collaborate with trend-setting designers and makeup artists.?

Limited Editions: Create urgency and exclusivity with limited-edition collections. Collaborations with influencers or celebrities can also drive hype.

Product Bundling: Offer product bundles for a complete look. Bundles not only increase the perceived value but also encourage customers to buy more. Offer travel and special occasion sets.?

Curate Assortment Range for Different Channels and Retail Formats: One size doesn’t fit all. Pharmacy needs a very different line-up from the department store, and the mono-brand boutique downtown should carry a different range from the airport counter or a corner in a hipster concept store.?

Measure and Track Range Productivity: Make sure that your top selling SKUs have a favourable cost of goods to ensure that your makeup range is profitable. Also please remember that your stick should be balanced and should have quite fast turnover. Sometimes you need quite unconventional shades and textures to benefit from customer curiosity, but such products should be manufactured and sticked at the smaller quantities than bestselling, but probably less exotic SKUs.?

2. Consumer Engagement: Building Loyalty Through Connection

Engaging with consumers on a personal level turns buyers into loyal advocates. Here’s how:

Personalization: Utilise data to offer personalised recommendations. Use quizzes or AI tools to suggest products based on customer preferences and purchase history.

Offer relevant inclusive and diverse looks: Make sure your customers can recognise themselves among the looks they see at your counter or in your campaigns. Your brand is your customers’ reflection. Make sure your models and ideally your retail sales team are representing all your key customer profiles (ages, skin tones, styles etc.)

Interactive Campaigns: Host online and in-store events like makeup tutorials, live Q&A sessions, and virtual try-ons. This creates a sense of community and provides added value. Use co-creation with your consumers for selected products/ collections.

Loyalty Programs: Reward repeat purchases with points, discounts, or exclusive access to new products. A tiered loyalty program can motivate customers to spend more and come to your stores more often.

Customer Feedback: Actively seek and act on customer feedback. Use surveys, social media polls, and reviews to understand their needs and improve your offerings.

3. Visual Merchandising: Creating an Irresistible Display

Visual merchandising is the art of creating an engaging and attractive presentation of your products. It is much more important for makeup than for other cosmetics categories. Effective strategies include:

Strategic Placement: Position bestsellers and new arrivals at eye level to catch the attention of shoppers. Use end caps and window displays to highlight seasonal or promotional items. Make sure both testers and saleable stock are easily accessible to encourage self-service.

Thematic Displays: Create themed displays that align with current trends, seasons, or holidays. For example, a “Spring Fling” display with pastel colours or a “Glam Night” setup featuring bold, dramatic products. You also can play with shades and products combining them on the display into the looks as done very well by Charlotte Tilbury Beauty .?

Interactive Elements: Incorporate digital screens or tablets that allow customers to explore products virtually, watch tutorials, or take part in interactive quizzes. You can add QR codes to enable customers to play using their own device. The simplest interactive element in a physical store is a mirror. Also don’t forget about tissue, applicators etc. accessible to the customers. Make sure that key product benefits and claims are communicated on the merchandising units in the language understandable by your consumers. Great examples are shown here by NYX and MINA.

Please don’t forget that visual merchandising makes sense also for e-commerce. By strategic placement we can mean catalogue structure and recommendations to add complimentary products to the basket. By thematic displays we can mean thematic banners and spotlight on different collections. In fact online you can present more themes than in the limited physical space. In e-commerce a makeup brand can offer multiple interactive elements such as tests, games and quizzes, virtual try-ons, makeup artists’ tips, customer reviews etc.

?4. Retail Experience: Crafting a Memorable Journey

The in-store experience should be as captivating as the products themselves. Focus on:

Ambiance: Create a welcoming and aesthetically pleasing environment. Use decor that reflects your brand’s identity and appeals to your target demographic.

Expert Staff: Train staff to be knowledgeable and personable. They should be able to provide personalised recommendations and demonstrate product usage effectively. If you are in a self-service environment, make sure there is clear product information and demonstration tips in place (e.g. screens at the tester-stands or detailed makeup creation guide or QR code with a link to it on the product box).?

Makeup Stations: Allow customers to test products before purchasing. Sampling stations or makeup bars can reduce purchase hesitation and enhance customer satisfaction. In e-commerce this place is taken by video tutorials and virtual try-ons.

Efficient Store Layout: Design a store layout that encourages exploration without overwhelming. Ensure that popular items are easily accessible and that there’s a logical flow from one section to another. The same rule is valid for e-commerce. The website should be engaging and the minimal number of clicks should lead to the desired results.?

5. Social Media: Amplifying Your Reach

Social media is a powerful tool for building brand awareness and driving sales. Here’s how to maximise its potential:

Right channel: Be there where your customers are. Depending on the target audience makeup brands should be on Instagram or Tik-Tok. If the brand offers tutorials, YouTube can be a good option. In some markets Telegram can be a relevant channel.?

Content Variety: Post a mix of content including tutorials, product reviews, behind-the-scenes looks, and user-generated content. Diverse content keeps your audience engaged.

Influencer Collaborations: Partner with influencers who resonate with your brand. Their endorsements can introduce your products to new audiences and lend credibility. Think about the influencers matching your brand personality. Often micro-influencers can be more effective than the macro-ones. Don’t forget that your brand employees and customers can be the true influencers and brand ambassadors

Hashtags and Trends: Use relevant hashtags and participate in trending challenges or topics to increase visibility. Create branded hashtags to foster a community around your products.

Interactive Features: Utilise stories, polls, live videos and contests to interact with your audience. These features can drive engagement and make your brand feel more accessible.

6. Additional Tips for Success

Sustainability: Incorporate eco-friendly practices in packaging and product formulations. Some consumers increasingly prefer brands that prioritise sustainability. Great examples of such practice are refills and reusable packaging

Data Analytics: Use data analytics to track sales, understand customer behaviour, and refine your strategies. Tools like Sales Dashboards, Google Analytics or CRM systems can provide valuable insights. There are also new tools, for example customer experience management platforms (e.g. SatisfAI), that can bring into the light some aspects not visible previously.?

Customer Education: Educate customers about your products through blogs, videos, or workshops. Knowledgeable customers are more likely to make informed purchases. On the other hand, don’t underestimate customers’ knowledge. Thanks to social media and digital technology customers are becoming experts and often look for peer to peer advice rather than a formal education approach.

Omnichannel Approach: Ensure a seamless experience across all channels – online, in-store, and mobile. Consistent brand messaging, service standards and a unified shopping experience can boost customer satisfaction and loyalty.

Profitability and Productivity are always to watch: It is critical to set up the objectives and monitor the results of each activity. Each action needs to be justified by the reason to implement it, and the ROI of each initiative is important. In the world of limited resources we need to focus on those actions that work.

In conclusion, selling makeup like hot pies involves a combination? of art and science. It’s about creating a compelling assortment, engaging with consumers on a personal level, crafting irresistible displays, and leveraging the power of social media. By focusing on these areas and continuously adapting to market trends and consumer preferences, you can set your cosmetics business on a path to success.

Feel free to connect and share your own tips or success stories in the comments below!