The beauty segment is a growing and profitable part of the retail sector, forecast to grow by 16.5 per cent until 2023 according to market research company GlobalData.
Retailers who invest in and promote their own beauty lines on top of selling third party brands can take a greater share of the market. However, they need to make sure their offering is right and that they understand the legal and regulatory risks.
Promoting an own brand can sometimes mean involving a high profile celebrity to face the campaign. Choosing the right individual and having control over how they promote the brand – including using well worded contracts and clear KPIs – will be important to success and a key part of reputation management.
From a regulatory perspective, exaggerated claims around what beauty products can achieve could land the retailer in trouble with the Advertising Standards Authority or Trading Standards if consumers are misled, so you need to be careful with claims and descriptions.
Consumers are placing more importance on sustainability or provenance than ever before, so any such claims about ingredients need to be checked carefully and accurate descriptors used.
With the backlash against single use plastics, many brands are keen to promote the sustainability of their packaging so any such claims will need to be scrutinised for accuracy.
A solid and well received beauty offering will no doubt bolster brand value, however, there are reputational and legal risks at stake if things don't go according to plan. No retailer can afford to overlook the importance of this or cut corners.