Black-Founded Beauty Brands Outperform on Social Media
Black-founded beauty brands, including Fenty Beauty and Danessa Myricks, are outperforming competitors in social media engagement. The high visibility and rapid growth of these brands can lead to overproduction or frequent product cycling. This dynamic may generate surplus inventory suitable for the off-price channel.
- Fenty Beauty by Rihanna generated an estimated $72 million in earned media value in its first month. The brand maintains a strong social media presence with over 12.8 million Instagram followers and an engagement rate that has been noted to surpass the industry average. - From May 2020 to April 2021, Danessa Myricks Beauty saw its Earned Media Value (EMV) increase by 91% year-over-year to $60.0 million, while its network of influencers grew by 86%. In comparison, the top 10 EMV-driving makeup brands experienced an average 32% drop in EMV during the same period. - The rapid trend cycles and high volume of new product launches fueled by social media platforms like TikTok contribute to overconsumption and overproduction within the beauty industry. This dynamic creates a continuous demand for newness, leading to potential excess inventory. - For the past two years, Black-founded brands have outperformed the rest of the U.S. prestige beauty market in February. In February 2023, this segment's dollar sales grew at nearly double the rate of the total prestige beauty market compared to the previous month. - The off-price channel, including retailers like TJ Maxx and Marshalls, is a common destination for overstock inventory from major retailers such as Sephora and Ulta, which need to clear shelf space for new products. This can include prestige brands like Clinique, Kate Somerville, and Laneige. - Social media significantly influences beauty purchases, with one report indicating that 97% of respondents have bought a beauty, skincare, or wellness product after seeing it on these platforms. This high level of influence can lead to products quickly selling out, demonstrating the direct impact of digital trends on sales velocity.
