The Rise and Fall of Celebrity Beauty Brands: Why Major Retailers are Pulling Influencer Brands from Shelves
Major retailers are now pulling influencer brands from their shelves, and the incubator behind Ariana Grande’s range has filed for bankruptcy, signaling a shift in the beauty industry landscape. The initial success of brands like Fenty Beauty and Kylie Cosmetics, created in collaboration with social media influencers and celebrities, led many beauty executives to believe that this partnership was a billion-dollar idea. However, recent data suggests that consumer behavior may not be as sticky as initially thought.
According to Olivia Stelmaszczyk, a Beauty & Fashion Research Analyst at Euromonitor, the initial buzz created by influencers like Addison Rae or Hyram Yarbro may have encouraged an initial purchase of their beauty brands. Still, consumers are now showing signs of fatigue with the constant stream of new launches in the market. Ipsos’ report revealed negative sentiments among consumers, with many questioning the authenticity of celebrity-endorsed products and feeling that the market is oversaturated.
Anna Mayo, VP of Beauty & Personal Care Thought Leadership at NielsenIQ, highlighted the accelerated rate of new celebrity brand launches in recent years and the growing skepticism among consumers about the intentions behind these launches. The rise of TikTok in the beauty industry has also shifted consumer engagement towards less-polished content and micro-influencers, challenging the conventional image of perfection associated with celebrities and influencers.
Despite these challenges, sales data from NielsenIQ showed a 32% year-on-year growth in US dollar omnichannel sales for celebrity beauty brands between mid-2021 and mid-2022. While some newer celebrity beauty brands have seen success, such as Rhode by Hailey Bieber and Rare Beauty by Selena Gomez, others are struggling to resonate with consumers.
To succeed in this competitive market, celebrities launching beauty brands must prove authenticity and align with consumer values. Consumers are demanding transparency and emotional connections with celebrity brands, pushing celebrities to work harder to establish the importance and meaning behind their brands. As the beauty industry continues to evolve, the fate of celebrity beauty brands remains uncertain, with some facing challenges while others thrive as “unicorns” in the market.