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The 3 Biggest Challenges Facing D2C Beauty Brands in 2020

The consumer. Fickle, drawn to new technologies and philosophies like a moth to the candlelight, and increasingly diverse in terms of their demands and needs. Some may want to know what is being done with their data, and know that it is being used well. Others want to have access to the latest trends, quickly and easily, while a growing majority want to know that accessing those trends won’t compromise their ethical views or cause harm to the planet and its inhabitants. Here’s our top 3 challenges facing D2C brands in 2020.

1) Controlling and correctly utilising customer data

More than ever before, the consumer has been made aware of their data, the large amount of data that has been gathered about them and the pernicious use some might make of that data. It is perhaps too late to now close Pandora’s box, but in an industry as personal as beauty is, that data can be used greatly to the benefit of the customer. Therefore, it will increasingly become a brand’s duty to make sure that they control their customer data in a way that is ethical and upfront, and make sure customers trust them to use it in a positive and beneficial manner. A manner that increases customer satisfaction with the brand, and feels relevant and personal to them. Beauty brands must also rise to the challenge of learning and evolving based on the data they’ve collected in order to not become obsolete.

2) Adapting quickly and effectively to growing trends

First off, let’s be clear: diversity is not a trend. It’s necessary, it’s important and it’s high time that it was embraced globally. Certain brands are doing this, for example Fenty, which launched with multiple foundation shades. The problem, however, with diversity is that it can mean a great variety of people looking for a great variety of products and suddenly, you realise that that classic mascara or highly-rated eye cream is not going to quite cut it. Brands must rise to the challenge of adapting quickly and effectively to growing trends, and trends that will be relevant only to certain groups - based on everything from age to hair colour. In order to do that, they can’t rely only on the powers of observation and sales - sure they might be getting a healthy amount of sales, but they’ll be missing out if they don’t adapt with the help of advanced technologies. Beauty personalisation technology, for example, can predict customer’s needs and growing trends, while also presenting customers from a variety of backgrounds with exactly the product that suits them. This is useful for both the brand and the customer.

3) Sustainability and Transparency

Sustainability is a growing priority for many consumers, who want to look good but also feel good knowing that the products they put on their skin are not causing harm. Concerns include the environment, animal testing, or the chemicals in skincare products. Maybe there was once a time when such things could be glossed over, but that time is fast coming to an end, as more and more beauty brands are upfront and clear about their products, ethical concerns and ingredients. In 2020, transparency will be more important than ever, and no brand wants to end up on an internet listicle of shame because they didn’t reveal where they sourced their products. For some, this will be a challenge. For others, there just needs to be a shift in how this information is presented and used. In terms of beauty personalisation technology, sustainability and transparency become important as products can be targeted at individual customers based entirely on where their priorities lie. BME allows brands and retailers to become more transparent about their products allowing customers to trust their recommendations made, enhancing sales and customer loyalty

Having trouble facing your D2C challenges in 2020 and beyond? Beauty Matching Engine can make your life easier and the first step to doing that is to book a demo.


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