The Cosmetics Industry: A Look Inside the Cosmetics Industry

The beauty industry and beauty brands continue to grow at a rapid pace and so do the companies that support the beauty business, such as contract manufacturers.
Beauty is a growth industry and it’s increasing at a rapid pace. What is driving this growth?
The key factors are:
* The new efficient distribution channel of the internet
* Convenience and democratization of brands
* Selfies
* The need to create and be an individual
* The demand for natural and environmentally-friendly cosmetic products
* Customization and new technologies.

The industry is led by brands, whether large multinationals or smaller indie brands. However, there is an entire network behind the scenes that supports these brands. These companies are the manufacturers of the products, the packaging makers, the ingredients suppliers, or the machinery engineers. They are highly specialized experts.

Companies called “contract manufacturers” take care of all the details so that the brands can focus on their customers. These manufacturers can specialize in a specific field, such as pencils, or offer a full array of color cosmetics, skincare, and hair care. The expertise is supported by chemists, engineers, operations, and product developers that work collaboratively on making products that deliver to the needs of the brands.

So now that we understand contract manufacturing, what is the difference between that and private labels? I like to use the analogy of couture and ready-to-wear in fashion. The couture is a contract manufacturing, one of a kind, specialized for you. The ready-to-wear is private label, ready, available, in these shades, finishes, ready to be delivered to you.

Private label allows a new brand to start without a large minimum requirement of manufacturing, packaging, and testing costs. Formulas have already been tested, scaled up, and proven.

This also allows for speed to market, where a three to six-month test for a new formula would be required. A private label formula already comes with all the testing and documentation needed. We’ve reviewed contract manufacturing and private labels.

There are many careers available in these two categories for anyone interested in anything beauty.

Social Media: Never Stop Creating

Marketing has changed a lot in the last couple of years and the future of marketing is going to get even more defined as the years go on.

Traditionally, marketing focused on identifying your target demographic and figuring out how to reach the people in the demographic. With the advent of social media, the number of customers that you can reach as a business has increased tremendously,

So, how can you approach marketing on social media? The most common methods are through paid sponsorship campaigns, where you pay to have a certain group of people targeted through your sponsored advertisements, and through posting organic and original content. The latter of by the far the most authentic

This is commonly referred to as digital marketing and it’s much more popular than traditional marketing nowadays. To start a business, you’re more likely to use Instagram and Facebook than post an ad in Vogue.

To be taken seriously nowadays, your brand needs to have thousands of followers. Ideally, around 30,000. To grow your audience to this number, it’s the same method as if you’re trying to grow your personal account. You need to post on a daily basis and your content needs to be relevant to your industry. This applies to both Instagram and Facebook.

A great way to begin is planning out the images you’re going to post for the next two weeks. This way, you can plan your feed and visualize how it’s going to look. One-third of your posts should be functional arguments, where you describe your products to your customers. The other two-thirds of your posts should be emotional and editorial.

Divide your content into these two categories so you can plan an even spread of functional and emotional content across your channels. This way, your feed looks visually appealing to your audience and catches their attention.

Professional Methodology: The Design Process

Phase One: Transforming Marketing Brief into Design Strategy

The design process is not merely about selecting fonts or images for packaging. It commences with converting a marketing brief into a comprehensive design brief. This initial phase lays the groundwork for developing a strategic approach to packaging design, setting the tone for subsequent stages.

 

Phase Two: Integrating Diverse Skillsets for Refinement

In subsequent phases, a myriad of skills come into play, ranging from strategic expertise to artistic prowess. Professionals adept in logo development, illustration, photography, and graphic design collaborate to refine the design iteratively. Each stage enhances the quality and precision of the final product.

 

Phase Three: Transitioning from Design Approval to Production

Upon client approval, the design progresses to the production phase. Here, meticulous attention to detail is paramount. Production professionals with proficiency in software tools like Illustrator ensure seamless translation of designs into production-ready files. They navigate project parameters, material considerations, color limitations, and manufacturing complexities with finesse.

 

Conclusion: The Holistic Impact of Package Design

Package design not only influences brand perception but also sets trends in brand activation, including social media presence. Moreover, sustainability considerations permeate every phase of the design process, reflecting a growing commitment to environmental responsibility. Amidst diverse creative inputs, a structured methodology underpins the beauty business’s packaging design endeavors, ensuring coherence and efficacy.

Leadership Mindset: Mindset of a Leader

The first thing to say about the mindset of a leader is there needs to be vision. A leader needs to be looking forward.

There’s one professor who talks about seeing around corners- having the ability to see what’s coming and predict that. The other part of the mindset is comfort with ambiguity and comfort with uncertainty. Some people call it agility. What I’ve heard agility defined as is ‘Knowing what to do when you don’t know what to do.’ I think that’s really important for anybody who’s leading these kinds of efforts.

It’s that spark of creativity and the ability to see themselves as an innovator, and to really motivate the team as well. To draw out the best and create the right kind of environment for their team.

There needs to be that element of empathy, first of all. To understand other people aren’t walking in their shoes and to understand what they’re going through. Leadership today isn’t about command and control. It’s about coaching and coaching people to bring them along. As a leader, you’re not so much concerned about your own creativity. It’s about drawing the creativity out of other people. It’s about setting the right kind of conditions that are going to allow people to be creative.

A concept that’s being talked about quite a bit today is the element of psychological safety. You’re going hear that term quite a bit. You’ll probably hear about it more in the future, but it is about leaders who create the right environment, the right conditions, and the right climate where people feel comfortable to bring their ideas forward. They can go to their boss or they their leader, look them in the eye, and tell them the truth without fear of reprisal.

Introduction:: What is Beauty?

The major categories of the beauty industry are color cosmetics, skincare, haircare, and fragrance. Expanding personal care is becoming much more important. The men’s space is booming, and wellness is having an enormous impact on beauty.
The future of beauty is bright. During the pandemic, beauty expanded into self-care and wellness. There’s a continual blurring of lines between products. For example, we call it the “skinification” of hair, the “skinification” of makeup, the “skinification” of the body. Products are getting better all the time. They not only make consumers look better, but they also make them feel better.
That will continue to be an important trend. The future of beauty has a lot to do with health and wellness, and inner and outer beauty. When you look good, you feel good. When the planet is healthy, people are healthy.
Beauty is a part of it and helps to drive that conversation. This will continue as we all celebrate the new normal, and the individuality and self-expression we cherish. Beauty is a key voice. It enables people to express how they feel and serves as a visible manifestation of personal values.
As beauty is evolving, it’s exciting to see how the industry is not only keeping up but it’s also leading the way for changes that are happening at a socio-cultural level.

Introduction to Fragrances: The Sense of Smell

Humans possess five senses: sight, sound, touch, taste, and smell. Taste and smell are also referred to as chemical senses because they provide us with information about changes in the chemistry of our environment.
Chemical senses are the oldest of our senses and are used by all animals, including man, to survive in an environment. Our sense of smell is used for many reasons, including the following:
* Communication and recognition
Regarding communication, pheromones are scent-signals between members of the same species, while allelochemicals are scent-signals between members of different species.

Regarding recognition, a baby can recognize its mother by the way she smells, and vice versa.

* Finding food
Our sense of smell can also be used to find food and assess its quality. The chemical degradation of food produces chemicals known as amines. This is why rancid food smells bad. It is our signal not to eat that food even if it looks perfectly fine.

* Defense
Smells can also be a defense mechanism. We can smell smoke long before we can see the flames of a fire. We have also added a smelly chemical called mercaptan to natural gas so we can smell a gas leak in our home even if there is no sound or the gas is invisible to the naked eye.

* Pleasure
Studies have shown that the smell of something can produce feelings of pleasure or displeasure. This is because our sense of smell is closely related to the part of the brain that controls our feelings and emotions.

* Memory
A smell can also trigger a memory quickly and accurately. This is because the scent-signals in the brain go directly to the part of the brain that deals with memory and emotion.
Our sense of smell is particularly important to our quality of life. When choosing our fragrances for our beauty products, we want to produce feelings of pleasure on the part of the consumer.

Introduction to Fragrances: Naturals and Synthetics

Fragrances were born as soon as man began walking upright and discovered fire. Logs of cedarwood and oak were thrown into the fire and fragrant smoke drifted upwards. Prehistoric man had released the beautiful scents of trees and plants. He would burn these materials and create scents that would honor his gods and protect him from evil spirits and illness.
Each geographic area has its own flora and fauna, and they produce different scents. Even in today’s world, different cultures and localities prefer different scents. And we are always challenged to produce globally-pleasing fragrances.
Fragrances are still used for spiritual and medicinal purposes, but in the beauty industry, we want to make things smell good. Fragrances mask the maladies of our world and please our sense of smell. We use fragrance to adorn our bodies and improve our surroundings. For most, their fragrance is their final accessory used to complete the way they look and feel.
The natural materials used for the creation of fragrances have remained the same for centuries. We still use all types of plants and all different parts of the plant, including flowers, roots, leaves, stems, grass, bark, wood, and seeds. We obtain their oils through a variety of methods.
Distillation: We distill the plant materials using steam and water to obtain the oils.
Extraction: We extract their precious essences using carbon dioxide or other volatile solvents.
Expression: We express the oils using abrasion and pressure. This method is especially used for citrus oils so that no heating is involved.
At one time, we used by-products from animals, such as ambergris from whales, but we no longer do that. Animal cruelty regulations and the continued decrease in animal populations stopped these practices. We have created animal-type odors using aromatic chemicals.
Organic chemistry has allowed us to create aromatic chemicals which smell similar to natural ingredients and which can be mixed and matched to take the place of natural ingredients. These chemicals are created from petroleum and turpentine. They allow us to produce much larger quantities and provide less expensive materials to work with. Perfumer has a much larger palette of individual odors to turn into beautiful fragrances.
For the perfumers, raw materials are their notes, their inspiration, their language, and the components of their olfactive memories. One thing remains the same. We identify the materials we work with to create fragrances by the way they smell. We classify them in the same way that visual artists classify colors and musicians classify sounds.

Industry Perspectives: The More You Know, the Better

We’re in for a really big change. Things are changing before our eyes now; the retail experience is totally different from what it used to be. We’re also going to see a lot of movement.

The people that are going to be successful are the ones that are aware of how people are shopping. Hopefully, people will go back into the store, but a lot is happening online. But how do you sell makeup online? You’ve got to be creative.

One piece of advice to anyone that wants to be an entrepreneur — because who doesn’t want to work for themselves — is to make sure you have something or an idea that is better than anything out there. Bobbi Brown, a makeup artist/author/entrepreneur says “It’s got to be new. It’s got to be better. Make sure you know you’re going to be working 24 hours a day. You never stop thinking about it.”

I also recommend working for a company. Go work for a big company, because then you’ll know what you don’t want to do. You’ll learn how to act, how to arrive on time, and how to write spreadsheets. The more you know, the better you do. There’s no rush.

Brown says there are three traits he loves to see when people want to get into the beauty industry. Number one: energy. You need to have good and positive energy.

You also need to be really curious. I don’t care what you know. I care what you want to know.

The third thing, which everyone says, is passion. You have to love what you do. You have to love the industry you’re in.

Industry Perspectives: Push Yourself to Explore

Hannah Bronfman, founder of HBFIT sits down with us and provides advice on how to get a career in the beauty industry and push yourself out of your comfort zone

“I think the advice that I would give to my younger self would be don’t feel awkward about cold calling and reaching out blind,” says Hannah Bronfman, founder of HBFIT. “I think there’s something to be said about a go-getter and someone who knows what they want and how to get it, or at least how they think they know how to get it.”

When you cold call someone and you have a heart and soul behind what you’re trying to achieve, that comes through. Maybe the first time, the person doesn’t answer the email but emails them again. Persistence is key.

A specific area of the beauty industry that’s changed via technology is the booking platforms. Hannah says a lot of these companies have created their own SaaS products, which is a statistical analytics system that is like the brain of a lot of these apps. Whether it’s Glam Squad, the Glamm app, Style Seat, all of these programs and technologies have created a new way that people interact with beauty and the way that beauty is booked for the professional and the consumer.

It’s brought the beauty world to a full on-demand system just like everything else that we see. So I think technology has an impact on the product and the way it’s designed.

Every single brand is trying to recreate the lipstick or foundation, lotions, gels that finish matte or true match a color, or lipstick that looks blue, but it’s going to turn bright pink. I think everyone’s trying to do this kind of surprise and delight using technology to help create a different product that hasn’t been to the market yet, says Hannah.

To prepare for an interview, you can do a few things differently. One, do your research, know who you’re being interviewed by, and know the trajectory of their career.

For the company that you’re interviewing for, know their past big product launches and what has gone on in the news.

Consider: Have they raised money? Have they been acquired? Did they go through a recall?

“Those are things that you want to know before an interview. And I think some other things that you can do is, always, if you’re going into a beauty meeting, wear lipstick, wear eye shadow, nothing that’s flashy, but something that says you’re an enthusiast,” Hanna explains. “And always be polite, take your time when you’re speaking. It comes off a lot better when you don’t say the word like or um.”

Industry Perspectives: Be Business-Savvy

Jeanne Grey, founder of GreyLayers says that cosmetics and beauty as a whole can change one’s personality. “When I was little, I used to observe my mom and how she got ready in the morning and completely transform from a completely simple person into somebody different. I saw how her personality changed along with that and I thought that was amazing. I wanted to grow up and see how I can do that for other people as well,” explains Grey.

Grey says about beginning her career as a social media beauty expert, “My advice to the younger me would be to just be you and just let things flow. And eventually, with experience, all the trial and errors counted in too, everything will just work out.”

The most common mistake that Grey has seen in the beauty industry is people not being prepared prior to getting into the career. She says, “You have to treat this career as you would any other career, being a lawyer, a doctor, any important one.” She also emphasizes being business savvy and professional. “This industry, especially because it is an easy play, you know playing with cosmetics, products and different kinds of experiences, you easily forget to be professional.”

One of the ways Grey has found success in her career is by putting together case studies. These case studies are reports of a certain niche project that she’s done in the past. “For instance, as an influencer, I have done projects for a lot of hospitality brands,” says Grey. In order to land a gig with a beauty brand, Grey creates a slideshow that ties in her hospitality background of traveling and creating content. She then combines beauty into that by showing them that she was able to use beauty products throughout her trip. “I highlight how I was able to create that and capture my audience at the same time.”