The numbers, as they are saying, by no means lie.
And this yr, the WWD Beauty Inc Top 100, our annual rating of the most important world magnificence producers by gross sales, tells a narrative of an business — and world — rocked by the coronavirus pandemic.
For the primary time since we’ve got been tallying these figures, a majority of the businesses on the checklist — 59 % — posted a decline in gross sales. Total gross sales for all the corporations equaled $212.59 billion, a lower of 6.6 %.
And but — the information wasn’t all grim.
There had been some vibrant spots in 2020 and a few huge winners, with 36 % of the corporations posting features. Those are the businesses pointing the best way ahead for the business, and to get a greater concept of what the way forward for magnificence may appear to be, we analyzed the 2020 Top 100 to find what it portends forthe future. Here, the highest 10 takeaways.
1. China continues to be the first driver of worldwide magnificence gross sales. Businesses with a robust presence in China — and those who had been proactive in adapting to the brand new market realities there — benefited disproportionately as China began to bounce again after the tip of the primary quarter. For many corporations, China was the main and, in some circumstances, solely driver of gross sales progress in 2020.
2. Speed and adaptableness had been key differentiators. Fast-acting leaders that pivoted to digital throughout all elements of the enterprise, from consumer-facing to operational to gross sales, extra efficiently offset the profound influence of COVID-19.
3. Prestige magnificence took a blow. Between the steep decline in journey retail gross sales and the anemic efficiency of the make-up and perfume classes, luxurious magnificence corporations had been the toughest hit for the yr.
4. But private care surged. In a yr through which self care, sanitation and hygiene had been prime of thoughts, well being and wellbeing had been a major concern. This benefited the large mass-market gamers with a robust presence within the class, which general noticed lesser declines than their friends; corporations like L Brands, for instance, posted a large gross sales leap due to cross-selling of merchandise like hand sanitizer with private care.
5. Skin care, too, captured the patron’s curiosity. Skin care grew to become not simply the prevalent magnificence class in China, however around the globe as properly. The huge winners had been dermocosmetics and medical manufacturers, as considerations shifted extra towards well being and self care. Market chief L’Oréal, for instance, noticed robust features for its Active Cosmetics division, whereas features within the class at The Estée Lauder Cos. meant it now accounts for 60 % of the agency’s complete enterprise.
6. Is status hair the subsequent huge increase? Prestige hair, a nascent class, grew all through the pandemic as shoppers linked hair well being with the thought of wellness. Firms that capitalized on that — together with Olaplex and the Luxury Brand Partners hair portfolio — did properly, whilst salons closed.
7. Direct-to-consumer was a vibrant spot. And not only for digitally native corporations. Several of the historic direct entrepreneurs ramped up their digital and social promoting initiatives and outperformed the general market.
8. J-beauty and Ok-beauty had been among the many hardest hit companies. Both international locations had benefited in recent times from robust demand from inbound vacationers, which nosedived final yr as worldwide journey stalled. Several of Japan’s gamers took a very robust hit, because the significance of customer support, largely depending on brick-and-mortar retail, and slower uptake of e-commerce than many markets, hampered enterprise. Nevertheless, Japan’s gamers had been significantly proactive in implementing new instruments like on-line consultations, and the shift is prone to be profound and to form the business for years to return.
9. There’s a brand new participant within the prime 10. South America’s magnificence chief Natura entered the highest 10 rating for the primary time, due to its acquisition of Avon. Notwithstanding the acquisition, the corporate’s gross sales progress was spectacular for the present context — its like-for-like gross sales gained 12.1 % for the yr, though this was partly because of inflationary stress, which impacted the opposite Brazilian gamers within the rating, too. At fixed foreign money and on a pro-forma foundation, Natura & Co.’s gross sales truly fell 2.3 %. Still, the corporate outperformed its friends considerably.
10. Clear and significant sustainability targets at the moment are desk stakes. Consumer expectations across the environmental influence of the merchandise they buy has spurred corporations to create clear, significant — and measurable — targets. Purpose-driven corporations are rising at a faster-rate than these with out clear initiatives.
Click on the photographs beneath to view the merchandise in every class.
WWD Beauty Inc Top 100: Top 10 Winners
WWD Beauty Inc Top 100: Top 10 (*10*)
For extra from WWD.com, see:
Fenty Beauty, Kylie Cosmetics Top Celebrity Brand Rankings
Beauty Companies See Online Sales Gains During Pandemic
A Year Into Pandemic, China Demand Drives Global Luxury