Offering great products is now no longer enough for beauty brands to survive, according to Mintel. Consumers expect companies to have a real purpose and use their power to help engender genuine social change.
The market intelligence agency recently released "Future Forwar", a report based on findings from consumer research.
The report shows that "not using harmful ingredients" (48%) is still the top priority of consumers who want to keep themselves safe.
They also want brands to be honest with them about their business practices (29%) and to pay their employees fairly (21%). Meanwhile, 15% of consumers also want to see products designed for people from all backgrounds and abilities. And among the younger generation, most are focused on these issues, so there is undoubtedly a need to shift focus.
"Whilst brands know that 'purpose' is a path to be taken, there are many that have yet to do so. In the coming years, brands will risk calls of tokenism if they do not plan to be at the forefront. Those that embrace it with courage and creativity will capture more consumer hearts and sales," said Jane Henderson, chairman of Mintel Beauty and Wellness.
"Brands must be prepared for consumers to care more than ever about inclusivity, as well as the dignity of employees and the impact of their business around the world, as we see people become increasingly concerned about the greater good. With the younger generations more passionate about wider social change than older counterparts, it is a trend that is set to keep growing."
Focusing on the collective doesn't just apply to individual brands, but also to the industry as a whole. Indeed, the greatest shift in vision that we will see in the next five years is one of collaboration. To achieve real change, brands must work together and not against each other.
Mintel research further shows that consumers are increasingly looking for more ambitious commitments in protecting the environment. While 34% of consumers say they expect brands to follow environmental regulations, there's a growing group that wants them to take this further. In fact, a similar proportion (30%) want beauty brands to do what's best for the Earth, even at the expense of margins.
What's more, half of consumers (48%) want to know the direct impact their purchases have on the environment, such as one tree planted for every purchase. A similar proportion (47%) want labels to clearly show a product's environmental impact.
"In today's world, consumers want more than just a product. They want to put their money where their values are. More people will consciously invest in a brand that is aligned with their values, and become so invested that they are prepared to build a shared legacy. Expect to see a growing consciousness among consumers of their impact on the world around them and an expectation that companies will absolutely do their part to help," said Henderson.
