How is the content creator economy shaping the beauty market?
Influencers and content creators have gone from being just a marketing voice to a game-changing force in the beauty industry.
From setting trends to building their own brands, their influence is powerful.
If your brand fails to keep up, the consequences can be dramatic.
A new era – from recommendations to brand creation
Influencers no longer just collaborate with brands – they create their own products, redefining the concept of consumer loyalty.
RareBeauty, VIEVE Fenty Beauty This is proof that customers buy not only cosmetics, but also the values and emotions behind the creator.
The brands mentioned generate millions of dollars in revenue.
What content creators have is something traditional brands often lack: distribution. Im talking about a community that will buy everything they put on the market.
Influencers know exactly what their community wants and are able to monetize it by creating a product that perfectly meets their needs.
Anonymous cosmetic brands that operate in a standard model must adapt otherwise it will be difficult.
Content creators have influence over even the biggest players in the cosmetics market – its just a matter of how popular they are and how large a community is built around the brand.
So what can a “small” brand do, whose creator is anonymous and distributes using the DTC or traditional model?
There is nothing left to do but establish a partnership with the selected content creator, but on a completely different level than before.
Influencers can be involved in the product development process. Their closeness to their audience allows them to create solutions that address real consumer needs…
…but it is even better to create a joint venture and formalize the relationship by creating a new company and brand.
The market now wants more – from product composition to the shopping experience.
Influencers act as living surveys, collecting data on customer preferences and behavior.
Sales have moved to where we spend most of our time – social media platforms.
Shopping via TikTok Shop or Instagram Shopping is now the norm. Customers want to buy quickly, intuitively, and where they consume content.
So either traditional brands will invest in online marketing competences at least a few people in-house (or a good agency its hard to find one) who will be paid market salaries (a lot of PLN)&
…or they will utilize the competences of a content creator and he will be responsible for distributing and maintaining social media channels at the desired level, guaranteeing optimal ROI.
Of course, what I wrote applies to brands that want to be at the forefront.
If someone is satisfied with what they have and mediocrity is acceptable to them, they dont have to change anything.
The market will shuffle the cards itself and the fittest will remain.
What does the near future look like?
According to analysts, the value of the content economy market will exceed $480 billion by 2027.
Collaborations will be more strategic and based on long-term relationships.
In turn, AI will play a key role in content personalization and precise customer targeting.
And to further confirm this thesis, YouTube recently established a special section whose sole task is to promote smaller content creators on their platform.
They have adapted an algorithm to this effect, which promotes and recommends small channels.
YouTube makes money from advertising. The more ad space (content creators producing engaging content) YouTube has, the more money it earns.
Now, children have a greater chance of reaching their target group with their message.
The market is moving towards content creators.
They will shape the economy, and “community-based products” will become increasingly popular.
