The beauty retailer race for Gen Z is heating up, with a growing number of players including Sephora, Ulta, Target, Amazon and TikTok Shop in the ring.
As more members of the cohort age into their spending power — which will reach $3 trillion by 2030, according to NIQ — the number of retailers vying for their beauty spend, too, is climbing. are betting bigger on the category, bringing buzzy brands to their assortments and, in the case of the former, implementing Ulta Beauty shops-in-shop in more than 500 doors.
“Searching by ingredient is so huge now — the consumer might go to the store knowing they want a hyaluronic acid serum, but the brand is just less important to them,” said Anna Mayo, NIQ’s vice president of beauty, adding thatbrands have benefited from this shift, ranking as the top “brand” in the mass market by both dollar and unit sales among Gen Z.
“We know Gen Z only buys what they think is worth it — that doesn’t mean they’re predisposed to mass brands or cheaper products — it means they’re value-focused; if they think it’s worth the money, they’ll make the purchase,” said Toto Haba, senior vice president of global omnichannel marketing at Benefit. beauty companies to launch on TikTok Shop in the U.S.
For Benefit, a significant portion of the cohort’s spend is coming from Sephora, which shares the same parent company, This is a significant shift from 2020 through 2022, when the retailers netted near-identical engagement levels of 295 million and 294 million . But even the retailers’ shared brands tend to tag Sephora in social content more often than they do Ulta. For instance, Fenty Beauty drove $20.4 million EMV for Sephora this year via its owned channel versus $14.9 million for Ulta. Sol de Janeiro drove $7.1 million EMV for Sephora versus $2.8 million for Ulta during the same period.
Leslie Ann Hall, founder and CEO of TikTok Shop’s first beauty agency partner Iced Media, said the platform is primarily being used as a discovery channel, and not so much a replenishment channel — meaning it isn’t cannibalizing brands’ other retailers.
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