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Indie brands are a strategic economic factor for the cosmetics industry, but not all of them are able to compete in an already very crowded market. The first realities appeared on the market in the early 2000s: they were small companies, born from an entrepreneurial idea of an individual, as opposed to the more consolidated realities. The first independent brands spread among consumers thanks to innovative elements compared to large industrial groups and more consolidated retailers: a direct-to-consumers marketing strategy, new low-cost digital promotion tools, external procurement solutions and special attention to consumer groups not very involved by multinationals.
Despite very positive debuts and often sensational launches, many Indie brands have not survived the laws of the market or have remained on the sidelines. According to McKinsey & Company’s 2023-2027 beauty report on a sample of 46 brands born after 2005, all with a turnover between 50 and 200 million dollars in 2017, only 4 reached a value of 400 million dollars. The data is illustrative of the competition that the founders of new small companies must learn to face: on the one hand, the multinationals and the most impressive industrial groups have reorganized themselves and have adopted development and marketing strategies more in line with the needs and consumer habits; on the other, more and more new cosmetic brands are launched every year.
True success for indie brands translates into the ability to remain competitive on the market. «The personal story of the founder of a brand is the real driving force for the growth of the brand, because it conveys authenticity. Who creates the brand is the best ambassador of his product, because he tells about its genesis, the production process, highlights what makes it different from what is already present on the market. For this reason it is the creator of the brand who is often the official voice of communication and promotion» underlined Deana Wyland-Fries, founder & chief inspiration officer of the Indie brand Elementals during a round table at the last edition of Cosmoprof Worldwide Bologna.
For Alina Mehrle, CEO of Ameon Skin, one of the fundamental values of a brand to remain competitive is attention to quality. «The consumer chooses a product because it is effective and of high quality and we must communicate these characteristics and offer proposals in line with expectations. As an indie brand we have an advantage over multinationals: we have a direct and constant dialogue with customers, and we can understand their needs and comments in real time thanks to social networks. This helps us broaden our horizons and always look for something innovative, which is not obvious in a competitive market such as the cosmetic one».
Dina Malik, co-owner of Yellow company, a beauty space based in Almaty, Kazakhstan, underlined the importance of innovation for a new brand. «Kazakhstan is a very interesting market for the cosmetics industry, but today most consumers are looking for established and multinational brands. However, new players are constantly emerging, who manage to gain visibility thanks to unique, creative proposals. In emerging markets such as Kazakhstan, there is little competition, so there are enormous opportunities for developing and testing new products».