Beauty's Superpowers See Growth in Indie Brands
The beauty industry's two biggest players, Estee Lauder and L'Oreal can agree on one thing. In order to stay relevant in today's $62 billion American retail beauty industry, the superpowers need to invest in the niche companies that younger consumers support through social media, Sephora, and their purchases. Business of Fashion reports that luxury is the fastest growing beauty segment. Historically, Lauder has focused on acquiring names like MAC and Smashbox; L'Oreal on properties like Urban Decay and Essie that they can grow. But in the new world, niche no longer means small: "Brands that were once considered indie and niche are no longer (small), and consumers are very receptive to these brands," says industry analyst from NPD Group Karen Grant.