Beauty Insights: Six Reasons Apparel Brands are Moving Into Beauty

Executive Summary

Apparel brands are launching beauty, personal care, health and wellness products as portfolio extensions to grow their customer base and increase revenue.

• Beauty products can serve as a gateway to introduce shoppers to a luxury brand whose full portfolio customers may then explore. For example, Gucci launched a lipstick line under designer Alessandro Michele in May 2019, allowing consumers to first experience the brand in an accessible way.
• Traditional brands are leveraging their influence and reputation to enter the beauty category through extension beauty products, as a strategy to increase revenue.
• Beauty products help to obtain customer loyalty through repeat purchases, because consumers have to replenish skincare, lip color or personal care products more frequently than apparel.
• Beauty and personal care products can help to increase apparel shoppers’ average order value.
• Beauty products, particularly with fashionable or unique packaging or a top designer name behind them, are sought-after gifts and therefore present another selling opportunity for retailers.
• By offering beauty products, retailers can reach can extended customer base through innovative marketing strategies on online media channels.