Ever wonder about the so-called “millennial effect” on the cosmetics and personal care sector? According to population projections from the U.S. Census Bureau, Millennials are on the cusp of surpassing Baby Boomers as the nation’s largest living adult generation. As of July 1, 2016, the latest date for which population estimates are available, Millennials, whom we define as ages 20 to 35 in 2016, numbered 71 million, and Boomers (ages 52 to 70) totaled 74 million. Millennials are expected to overtake Boomers in population in 2019 as their numbers swell to 73 million and Boomer’s decline to 72 million. Generation X (ages 36 to 51 in 2016) is projected to pass the Boomers in population by 2028.
[source: Pewresearch.org]
Of course, generations are made up. They are a definition designed to allow for a view of patterns to emerge. In this case, how people born between 1981 and 1996 (Pew) are impacting business is the Millennial Effect.
In cosmetics and personal care, several Millennial trends have been identified:
• Shopping Methods: Cosmetics and personal care purchases reflect a trend toward value, convenience, and bargain-shopping.
• All-Natural: Products that are all-natural tend to win synthetics
• Socially Conscious: and are influenced by sustainability and other ethical concerns in manufacturing.
• Technology and Social Media: Using technology and social media to research and share what they like and what they do not.
Shopping, Value, and Convenience
More than previous generations, Millennials demand value and convenience. Many actively search for bargains. Cosmetics and personal care products succeed with this market with new distribution models. Consider a subscription model to deliver value and convenience.
All-Natural and Socially Conscious
The overall trend to products that are all-natural and socially conscious is especially strong in Millennials. Choosing natural ingredients when possible and making clear what is in your product matters to many consumers. Some education on naturally-derived, synthetic, and natural would help, too.
Technology and social media
Millennials embrace technology at a higher rate than previous generations. And 97% are active in social media. This is great news for sales and marketing! When a product rocks, it’s easier for word to spread. The flipside is the same is true if it’s bad or contaminated.
Conclusions
Now what? Honestly, don’t believe the hype. Millennials are marginally higher than Generation X and Baby Boomers in these categories. And the number of Millennials is roughly equal to the number of Boomers and the number of Generation Xers. These trends are showing up across all the generations.
Should you refresh your product look? Yes.
Should you use safe, responsible ingredients? Yes.
Should you make clear the value vs. cost for your products and make them easy to buy online and in stores? Yes.
Should you pay attention to technology and social media for your marketing and sales? Yes.
Make a good, safe product and get the word out. Make your customers look beautiful, and they’ll tell a friend.
