Will fashion retailers who launch beauty lines succeed?

In the year By 2022, there are approximately 114,841 beauty brands in the US alone. Last year, the market was reported to have earned about $511 billion. With these figures in mind, it’s no wonder celebrities, influencers and dermatologists want a piece of the pie. However, in recent years, we’ve seen a rise in another type of beauty brand creator: fashion labels.

Fashion brands expanding into beauty with their own lines of cosmetics and fragrances is not a new concept. For example, luxury fashion houses such as Valentino, Giorgio Armani and Saint Laurent have carried the aesthetic for decades (since the 60s and 70s to be precise in these cases). “Brands are always looking for ways to better serve their customers,” Jenna Jackson, principal of growth at CAVU Venture Partners, told POPSUGAR.

Still, from the early years, there were many fast fashion brands following the trend. In the year In 2009, Forever 21 launched its makeup line. Topshop had its own beauty line shortly after that year, as did Primark. In 2015, H&M Beauty was launched; In 2017, Boohoo created Boohoo Beauty; Zara in 2010 We were shocked when she announced the news of her own cosmetics line in 2021. This is by no means an exhaustive list, but the point stands.

From a business perspective, the inspiration for brands taking this next step into the beauty space makes perfect sense. “Beauty products tend to have higher margins and higher repeat rates,” says Jackson. “Beauty products are also not trend-driven and are often not subject to downward pressure for wear due to seasonality or trends.”

While it’s too early to tell, the Covid-19 pandemic may have fueled his desire to pursue beauty. “These apparel brands are increasingly disrupted by lockstep as their beauty partners see resilience and growth, like skin care,” Jackson said. “That certainly drives them to expand their product offerings in a way that will push them to continue to satisfy customer needs and wants.”

With skincare, makeup or fragrances within their walls, fashion retailers increase their chances of becoming a one-stop shop for consumers, which translates into more revenue for them. But in an already competitive, oversaturated market, are these fast fashion brands positioned to succeed?

“There are some biases because beauty is ‘easy’ with high margins and low inventory buys for fashion brands,” says Jackson. “Fashion brands have to constantly come up with new innovations, new product launches and drops.

Another thing to consider: just because someone likes a brand for its clothing doesn’t guarantee they’ll like its beauty products. “There’s a big difference in the consumer’s mind when she buys a Zara dress that’s going to wear tonight, rather than deciding whether she wants to put a certain product on her face every day. The customer has a lot of choices when it comes to beauty. And they’re looking for high-quality products,” says Jackson.

Only time will tell if these fashion brands succeed in expanding into beauty, but if so, it will undoubtedly be a profitable move. The beauty industry is projected to generate $784.6 billion in revenue by 2025, and is likely to grow from there. According to Jackson, “Making a unique product that speaks to exactly what the consumer wants and has a deeper reason is the best way to survive in today’s climate.”