Andrew Stanleick’s Post

I enjoyed speaking today at the TD Cowen Glowing Ahead: Beauty and Wellness Summit in relation to the exciting growth opportunity created by the convergence of health, beauty and wellness. Thank you Oliver Chen, CFA, Jonna Kim, CFA and @Deepti Manjee for hosting me, as well my fellow panelists Alisa Lask, Jeremy Soine and Michael Lawsky. Key themes included:- • The convergence of beauty, wellness and health; and the implications to innovation and M&A strategy. • The 'Medicalization of Beauty'. • The Experiential Retail Revolution. • The large untapped, growing and resilient beauty, wellness and healthcare categories. • Artificial intelligence and personalization – where magic meets logic.

As always, I enjoyed Rachel Strugatz insightful writing for The Business of Fashion in relation to a topic that has dominated beauty headlines to date in 2024. That is Gen-Z’s and Gen Alpha’s obsession with ageing and the lengths they’ll go to stave off the inevitable, which includes skincare, filler and Botox. Ok, so this happened with Gen-X and millennials. However, structurally, Gen-Z (and Alpha) is more connected than any previous generation and far more active on platforms like TikTok where they broadcast their feelings, insecurities, fresh injections and bruises. Never has a generation had more access to information than they have about ageing, nor had more disposable income, and this is driving the well publicized hordes of teens to SEPHORA and Ulta Beauty each weekend. As Rachel illustrates, Gen-Z and Gen Alpha’s beauty behaviours are not trends, they are here to stay, and they will continue to fuel the category growth, innovation and advertising frameworks within the industry for years to come.

Change is the only constant in Beauty…. Each year I always look forward to reviewing the expert predictions from the Kline & Company annual Beauty & Wellness trends report which is just out. In 2024 technology will accelerate the way we choose and use beauty more than ever. But as the Kline report illustrates, it is not only the employment of AI that they predict will be evolving beauty trends and driving growth:- 1. Opulence: The trend of celebrating inner happiness through physical beauty is being driven by consumers seeking a luminous appearance through self-care and beauty routines. A trend which looks set to continue to fuel the tremendous growth of skincare and services such as Hydrafacial.   2. AI/Digital: Many beauty brands have already integrated AI in various ways, including skin analysis algorithms, personalized skincare routines, and individualized products. Kline predicts that this will now shift to the ‘professional beauty industry’ which is currently undergoing significant growth and transformation with the integration of AI, reshaping consumer experiences and fundamentally changing how individuals interact with beauty services, treatments, and personalized recommendations. 3. Social commerce: Already enormously popular in markets such as China, social commerce (goods and services purchased via social-media channels) remains a small but rapidly growing segment in the United States. Kline predicts that that social-commerce in the beauty channel is poised to grow as Instagram, TikTok, and YouTube have evolved into vibrant marketplaces where beauty enthusiasts not only seek inspiration and advice but also make instant purchases based on trusted recommendations. 4. Age-agnostic beauty: As we have already seen in the media this year, embracing age isn’t just for us Gen Xers!. As the Kline report highlights, it is really this age-agnostic approach for all generations, which embodies serving needs and not numbers. Pre-teens who are captivated by skin care routines pose a challenge for brands to guide them in selecting suitable products for their skin. This trend looks set to revolutionize skincare, haircare, and cosmetics innovation, advertising, and go-to-market strategies. Exciting times ahead! # Dana Kreutzer Max Kaye

A fascinating Study published by McKinsey & Company in relation to the booming $1.8 Trillion Wellness market. In the United States alone, McKinsey & Company estimate that the wellness market has reached $480 billion, growing at 5 to 10 percent per year. Eighty-two percent of US consumers now consider wellness a top or important priority in their everyday lives. The study highlights 5 key trends that are driving consumer consumption and attracting investment to this nascent opportunity. 1.     Trend one - Health at Home: The increase in at home diagnostics and testing.   2.     Trend two - A new era for biomonitoring and wearables: While wearable devices such as watches have been popular for years, new modalities powered by breakthrough technologies have ushered in a new era for biomonitoring and wearable devices.   3.     Trend three - Personalization’s gen AI boost: Nearly one in five US consumers and one in three US millennials prefer personalized products and services.   4.     Trend four - Clinical over clean: Last year, we saw consumers begin to shift away from wellness products with clean or natural ingredients to those with clinically proven ingredients.   5.     Trend five - The rise of the doctor recommendation: As consumers look to avoid “healthwashing” (that is, deceptive marketing that positions a product as healthier than it really is), healthcare provider recommendations are important once again.   https://lnkd.in/g4Fir5Mg

Interesting article in China Daily highlighting the shifting trends of Chinese consumer luxury goods consumption. According to the Yaok Institute China's luxury goods market witnessed an 11 percent growth in 2023, reaching 607.7 billion yuan, accounting for about 22 percent of the global luxury goods market. The proportion of domestic luxury goods consumption by Chinese people increased by 1 percent to 58 percent in 2023, while the proportion of overseas luxury goods consumption by Chinese people reached 42 percent. The report predicts that the growth rate of China's luxury market is expected to be around 12 percent in 2024, which will be slightly equal to the growth rate of the global luxury goods industry. https://lnkd.in/ekAQCchD

“How important it is for us to recognize and celebrate our heroes and she-roes!" – Maya Angelou Ahead of Veterans Day, we honor the brave men and women who have served. #VeteransDay