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Leading cosmetics & make-up brands ranked by brand awareness in the United States in 2023

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Leading cosmetics & make-up brands ranked by brand awareness in the United States in 2023

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Urban Decay is ranked at 43% by brand awareness in the USA

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L'Oréal is the most well-known cosmetics and make-up brand in the U.S., followed by Revlon, Avon, and COVERGIRL, while e.l.f. takes the crown in our cosmetics and make-up brand usage ranking. M.A.C. on the other hand has the most loyal customers among cosmetics and make-up brands.

For this study, brand awareness was surveyed employing the concept of aided brand recognition, showing respondents both the brand's logo and the written brand name.

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Cosmetics & make-up brand awareness KPI ranking U.S. 2023 | Statista

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L'Oréal is the most well-known cosmetics and make-up brand in the U.S., followed by Revlon, Avon, and COVERGIRL, while e.l.f.

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B2B

Lifestyle data - ACORN address the consumer

Age

Business Type

Customer relationship management - tracking customer interaction with the company

Acquiring the data from the customer

store visit (online or offline)

conversations with salespeople

interactions with mobile apps.

Common CRM Marketing Database

designing targeted marketing communications

Campaign management

developing customised offerings for the approved segment

pricing the offering attractively.

Data used:

Loyalty cards

Social media

AI

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Retaining and valuing the customers

Designing targeted Marketing communications

looking at transactional and purchase data behaviour into infrequent, moderate and heavy users - to encourage customer purchases and loyalty.

Reinforcing the customer purchase decision

typical customer behaviour, checking order status - suggesting the same products over again.

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Matching the products and customer profile to cross-sell products - matching customer characteristics

application of customer database.

digital marketing :

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Strategy Cycle - put this full analysis in appendix 

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Strategy Cycle - put this full analysis in appendix 

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1. Where are we now?

Audit of the current situation facing the business.

Evaluation of changes in the external environment, competitors, customers & market trends.

Analysis of strengths & weaknesses of the business, its capabilities &resources.

Analysis of strategic fit between opportunities, threats, strengths &weaknesses.

2. Where do we want to be?

What is the scope of the business? Where do we want to compete?

Which products should be offered (or not)?

Which markets are served?

What are the dynamics in those markets? Can they be won? What resources will be needed?

Will they be important in the future?

3. How will we get there?

What strategies and tactics are needed to achieve the objectives

Explore the Positioning statement and Differentiation of the brand - Urban decay

What is the perceived functional, emotional, social, or self-expressive benefit

What does the business do well in and are tangible

4. Evaluation and Control

What benchmarks & indicators will be used to measure success?

Feasible and measurable

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Summary of the McKinsey report:

The article explores the increasing trend of live commerce and how it affects the buying experience.

In China, live commerce has changed the retail business and established itself as a major sales channel in less than five years.

Discussing how it could transform online buying by providing a more interesting and immersive experience to customers.

Live e-commerce creating value:

It can increase a brand's appeal, uniqueness, and conversion rate while bringing in more online traffic.

Attracting new clients and improving positioning with current ones.

One-time coupons and other time-limited strategies can be used to create a sense of urgency. Businesses report conversion rates of up to 30%, which is up to 10 times greater than those of traditional e-commerce.

With the Gen Z and millennial demographic dominating the live streaming platforms.

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The arrival of Alibaba's Taobao Live in May 2016 marked the opening of a new chapter in sales. The Chinese retail giant had pioneered a powerful new approach: linking up an online livestream broadcast with an e-commerce store to allow viewers to watch and shop at the same time. Live commerce quickly established itself as a fixture in sales campaigns for Singles' Day-a major shopping event in China-and, more broadly, as a reliable digital tool for boosting customer engagement and sales. In 2020, the first 30 minutes of Alibaba's Singles' Day presales campaign on Taobao Live generated an impressive $7.5 billion in total transaction value. Welcome to the next wave of the e-commerce revolution.

How exactly this new channel will develop remains to be seen. What is clear is that it holds enormous long-term potential for brands and e-commerce platforms alike. If China's experience is any guide, our analysis indicates that live-commerce-initiated sales could account for as much as 10 to 20 percent of all e-commerce by 2026.

How does live commerce create value?

Live commerce can help brands, retailers, and marketplaces primarily in two areas:

Accelerating conversion. Live commerce is entertaining and immersive, keeping viewers watching longer. It also telescopes customer decision journeys from awareness to purchase. Time-limited tactics such as one-off coupons can be used to generate a sense of urgency. Companies report conversion rates approaching 30 percent-up to ten times higher than in conventional e-commerce.

Improving brand appeal and differentiation. Done well, live commerce increases a brand's appeal and distinctiveness and pulls in additional web traffic. It can strengthen positioning among existing customers and attract new ones, especially young people keen on innovative shopping formats and experiences. Some companies are seeing their share of younger audiences increase by up to 20 percent.

A rapidly growing channel

Live commerce has evolved rapidly in China, taking less than five years to develop into an innovative sales channel with an estimated penetration of 10 percent. The value of China's live-commerce market grew at a compound annual growth rate (CAGR) of more than 280 percent between 2017 and 2020, to reach an estimated $171 billion in 2020 (Exhibit 1). This growth spurt has been intensified by the COVID-19 pandemic, and Chinese sales are expected to reach $423 billion by 2022.

In terms of demographics, Generation Z and millennials dominate, although live commerce is starting to attract middle-aged and more-senior consumers. By March 2020, live commerce was used by 265 million people-almost 30 percent of Chinese Internet users. Taobao remains the world's biggest player (see sidebar "Key facts on the world's biggest live-commerce player"), with a market share of 35 percent.

Following China's lead, Western brands, retailers, and marketplaces are establishing their own live-commerce ventures and events to promote their products, especially in beauty and fashion. Among the earliest adopters was German beauty retailer Douglas, which streams several shows a week in a range of formats, from workshops with experts to talks with influencers, and reports conversion rates of up to 40 percent. On the fashion front, Tommy Hilfiger recently extended its livestream program to Europe and North America following successes in China, where one show reportedly attracted an audience of 14 million and sold 1,300 hoodies in two minutes. And in December 2020, Walmart piloted a livestream fashion event on TikTok that netted seven times more viewers than expected and enabled it to add 25 percent to its TikTok follower base.

A plethora of specialist start-ups have also emerged, including NTWRK, which features shows where guests talk about limited-availability streetwear, and Buywith, where viewers watch hosts browsing the e-commerce platform and chatting via webcam.

Starting out in live commerce

While live commerce is still an emerging channel with many unknowns, some best practices are emerging, and lessons from e-commerce are proving to be applicable. Brands will need a thoughtful approach to learning how to use the medium-it can be expensive to do live commerce during Singles' Day, for example, so best to try low-risk options first-and evolve their capabilities as they learn (see sidebar "Three live-commerce archetypes").

Our analysis has shown that focusing on answering the following questions can help put brands on the right track.

Which product and audience?

Consider which stage a product has reached in its life cycle. Are you seeking to generate instant feedback on a new product, clear stock of an older item, or give a bestseller an extra boost? Our observations suggest that live events can be highly effective for creating awareness and prompting trial but less so for solidifying loyalty. It's worth noting that many impulse shoppers are one-time buyers, so a newly attracted audience can't be taken for granted; keeping it will take work. Similarly, our experience has shown that shoppers often come from a very different demographic than the brand's typical target group.

To ensure that your show attracts the consumer segments most relevant to your brand, it's critical to know who makes up your audience, what matters to them, and how to get their attention. Using analytics sources and tools to understand who has watched your content in the past can help you build up "personas" of potential customers to guide your choices on your target demographic. In broad terms, Generation X and Generation Z shop-and spend-more online than other groups, but it pays to dig into the data at a more granular level.

Product launches or presentations can attract attention to a new product and convert interest instantly into sales, making them a good choice for seasonal marketing campaigns and exclusive or special deals. To trigger impulse purchases, products need to look good on small and large screens and be positioned as good value for the money.

Which format?

To set up a livestream event, companies typically engage a key opinion leader (KOL) or key opinion consumer (KOC) to host the show, introduce the product, and interact with the audience to trigger sales. Several popular formats have emerged, each with its own strengths:

Tutorials, such as makeup demonstrations hosted by models, are effective not only in showing audiences how to apply or use a specific product but also in suggesting how to combine it with other products, opening up cross-selling opportunities.

Interviews with a big name or influencer from a relevant segment feel more personal, authentic, and genuine than product launches and can be good for building awareness and driving traffic.

"Behind-the-scenes" videos offering the inside story of a product or company help build brand image and loyalty in a target segment-an ethical fashion retailer, for instance, might showcase its sustainable supply chain to environmentally and socially conscious consumers.

Regardless of format, many successful events feature interactive elements such as games, quizzes, and giveaways to keep viewers engaged and entertained. They maintain high production values in photography, location, lighting, and sound and ensure that scripts are not overly focused on the product.

Which enablers?

Planning a live-commerce event also involves deciding on the following:

Technology. The key technology choice is which platform or marketplace to use for hosting the stream and providing e-commerce functionality. Some providers offer one of these functions; others, such as Instagram and Facebook, offer both. The right choice depends on a business's level of maturity with live commerce. It also involves considering which technology provides the biggest target audience, which features it offers (live chat, "likes," and so on), and the level of commission to be paid. Companies with more experience in live commerce can switch to an off-the-shelf solution, such as Livescale or Bambuser, that allows them to tailor the live-shopping experience to suit their brand, syndicate to multiple social-media channels, and offer their customers seamless purchasing from the same page. Companies that want to fully customize the customer experience and functionality often build their own solution.

Tracking. As in e-commerce, effective monitoring and measuring of event impact by audience, day part, and so on is crucial to understanding what works and what doesn't. It is important that the live-commerce operating model be flexible enough to act quickly on that data. After a show, for example, it's possible to send a link to a recording of the show to a viewer who watched for just 20 seconds, or to offer someone who stayed for ten minutes a discount to convert their interest into a purchase. A one-off coupon code can help monitor customer behavior more precisely. Having this degree of flexibility requires a good content library, clear action plans and offer criteria, and a "continuous improvement" mentality.

Marketing. Like any event, good marketing drives performance, and-as experience shows-companies often don't invest enough time or resources to get their marketing right and can "starve" even the best marketing efforts. To maximize views, it's crucial to take an omnichannel approach, alerting target audiences to an upcoming show through newsletters, emails, websites, apps, push notifications, and social media and providing links and information on paid social media. The best producers have an intimate knowledge of the features (such as countdown clocks) offered by the chosen livestreaming platform, and they invest the time to understand which websites their target audience frequents and place ads there.

What's next for live commerce?

Our observations suggest we can expect to see the following developments in the next few years:

Micro- and nano-influencers. Big-name influencers and celebrities with millions of followers are expensive to hire and don't always make the best hosts. Using influencers with a few thousand dedicated followers can generate a more intimate and trusted connection with audiences at lower cost. According to one survey, the engagement rates for nano-influencers on Instagram are ten times those for mega and macro influencers.

Expansion into new sectors. As live commerce increases its reach, industries such as healthcare, engineering, finance-and, in time, B2B sectors-are likely to move in. For example, a leading tech company is planning to use its livestreaming platform to provide health-related content and services such as consultations and appointment scheduling.

Innovative formats. Augmented reality (AR) and virtual reality (VR) can make the shopping experience even more immersive and enable buyers to see a product from every angle. In an early example, Ulta Beauty teamed up with AR developer Perfect Corp to include virtual try-ons in its "Beauty School" livestream. In the future, consumers may be able to have virtual face-to-face conversations with a show host just as though they were speaking in a store.

Live commerce has become table stakes for successful consumer companies in China and much of the rest of Asia and is rapidly spreading to Europe and the United States. Some pioneers have achieved extraordinary reach and impact. Others wanting to follow their example will need to move quickly to design their own experiments to get the most out of this dynamic new channel.

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It's showtime! How live commerce is transforming the shopping experience

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Blending entertainment with instant purchasing, live commerce offers retailers, brands, and digital platforms a new channel for creating value.

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97% of Gen Z and Millennials' purchases come from social media posts.

Emails has delivered the best return on investment in the past year of 2023.

51% of customers in the UK have purchased products straight from an email they received.

Customers in the UK like to receive offers, content and incentives via email, which eventually prompts them to make a purchase.

Personalisation

79% of U.K. consumers like brands to treat them as an individual in their messaging (7% increase since 2022).

U.K. consumers are demanding more personalisation than ever in their messages, with companies dedicated to building stronger bonds and enhancing their messaging with customisation, value, and relevancy.

42% of UK consumers are irritated by messaging that do not reflect their goals and needs (with Gen Z at 49%). Customised messaging is at the heart of relationship marketing and long-term consumer satisfaction.

Consumers “want more” would be 24% of Gen Z asking for more VIP offers rewarding their actions as a valued customer and 22% of Gen Z desiring free delivery.

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Urban Decay brand awareness, usage, popularity, loyalty, and buzz among cosmetics and make-up users in the United States in 2022

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Urban Decay brand awareness, usage, popularity, loyalty, and buzz among cosmetics and make-up users in the United States in 2022

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Urban Decay brand awareness, usage, popularity, loyalty, and buzz among cosmetics and make-up users in the UK in 2022 - (kunst, 2023)

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Urban Decay brand awareness, usage, popularity, loyalty, and buzz among cosmetics and make-up users in the UK in 2022 - (kunst, 2023)

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Download our Health & Beauty Report which details industry findings and ranks the 30 leading brands in the UK on their social media strategy - who's winning and who's being left behind?

32% of consumers mostly or always shop for beauty products online. Meanwhile, creator-run brand Kylie Cosmetics is valued at $1.2 billion, while Jeffree Star Cosmetics garnered $34.5 million revenue in 2021. Emulate their social-first advertising strategy to drive conversion among a digitally-native audience.

Which brands have the sleekest social media strategies? We conducted a thorough multi-layer analytical study, assessing the follower growth, engagement rate, content quality and influencer partnerships of 30 top brands' Instagram and TikTok accounts.

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Download our Health & Beauty Report which details industry findings and ranks the 30 leading brands in the UK on their social media strategy.

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How the beauty industry will evolve in 2024 - (March, 2023)

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How the beauty industry will evolve in 2024 - (March, 2023)

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Summary

It predicts a shift towards eco-conscious and sustainable beauty practices, emphasizing the importance of ethical and environmentally friendly products.

Growing interest in personalized skincare and beauty routines tailored to individual needs.

Rising popularity of futuristic beauty technologies, such as virtual makeup try-on tools and AI-powered skincare solutions.

Focusing is on embracing innovation while maintaining a commitment to sustainability and personalization in the beauty industry.

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10 ways the beauty industry will evolve in 2024

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The 10 trends changing the landscape of beauty – from AI-driven innovations to Gen-Alpha influencers

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The cosmetics line Urban Decay, which includes makeup for eyes, lips, nails, and skin, is known and admired for its edgy style. Part of the L'Oréal Luxe brand portfolio, alongside Kiehl's, Lancôme, and Biotherm, Urban Decay products are sold online and in brick-and-mortar stores worldwide.

Challenge

"Each L'Oréal Luxe brand has its own website, based on a similar template," explained Virginie Robert, Digital Project Manager at L'Oréal Luxe, "but each line has a different brand identity and target audience. Optimizations that might work for one won't necessarily work for the others. That's why we knew we needed a tool like AB Tasty." Furthermore, since L'Oréal Luxe products are sold both on the brand's own ecommerce website, as well as by third-party vendors, it's especially important for their marketing teams to optimize transactions on their own site. The particular challenge for Urban Decay was increasing average basket size - both in terms of value and number of products - during sales.

A/B Test Idea

Working with Léa Benquet, their dedicated Customer Success Manager at AB Tasty, Urban Decay's digital team decided to run an A/B test during one of their sales. They wanted to determine if a promotional banner, advertising a discount for 85 euros spent, would increase average basket size, quantity of items, and ultimately, revenue.

With the help of AB Tasty's technical specialists, the banner - designed in an eye-catching green - was placed atop all basket pages on Urban Decay's site. If a shopper had fewer than 85 euros in their basket, the banner was triggered, informing them of how much more they needed to spend in order to take advantage of the discount.
The banner was triggered to all shoppers with fewer than 85 euros in their basket. It reads, "Only X more euros until you can benefit from a discount on your purchase!"
Results

The promotional banner significantly increased all of Urban Decay's KPIs: average basket size increased by 8%, the average number of items in the basket jumped by 7%, and revenue generated increased by an impressive 7%!

"We were very pleased to be able to work with Urban Decay to boost their revenue by 7% using just one A/B test. These kinds of optimizations can have a real impact on profits - over one year alone, this small change would have generated an extra 190,000 euros!" - Léa Benquet, Customer and Partners Success Manager Team Leader at AB Tasty

Takeaway Tip

Sales are particularly fruitful times to test website optimizations. Well-thought-out promotional messaging along the checkout process is key to maximizing profits.

"We were very happy with the results of this test, and we're absolutely going to use the banner again during our next sale. The best part is that duplicating and implementing the banner design will be very easy to do, and won't require any IT help, now that the template is all set up - this is part of the beauty of the AB Tasty platform." - Guillaume Totis, e-Commerce Manager at Urban Decay

Craft experiences
that wow!

Get your copy of"Urban Decay Increases Revenue by 7%" now.

Download the pdf

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Learn how international beauty brand Urban Decay increased revenue by 7% by running a simple A/B test on a promotional banner.

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13 years of experience in the industry working across the product team at END

Positioning within the company - experience design

Research methods - competitors, A/B testing, review the date, screen recording Microsoft clarity - range clinking, surveys, heat mapping to understand users what they are clicking and ignoring

Design process - research, define, ideate, test and deliver.

USER, BUSINESS AND BRAND - The homepage is the shop window, an indication of the brand and the products they sell. User-friendly site.

Projects: Rebuild - updating, Redesign brand evolution - third-party integration

Most traffic from the website.

Competitors: Net Ta Porter

The customer journey: Homepage, Product Page - targeted, Cart and checkout, Post-purchase - installing the app

In 2 months increase to 800k with the A/B testing

A/B testing designing - sale theme generated £3K more

Sales generated over the A/B testing.

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Chaffey, Dave (2024) How to align your marketing strategy with your objectives. Smart Insights [online] Available at: https://www.smartinsights.com/goal-setting-evaluation/goals-kpis/integrated-online-marketing-strategy-a-tool-for-integrating/Links to an external site. Accessed 25.03.2024)

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An integrated marketing strategy means every element of your marketing plan must contribute towards your vision for the business, or be cut out of the day to day workload

Lack of integration between strategic vision and the tactics needed to get there is a problem I often find when reviewing marketing strategies. That's why I created the RACE Framework as a simple one-page summary to unify your marketing strategy through goals, objectives, and KPIs.

This is true whether I'm reviewing student assignments or mentoring marketers creating real-world marketing strategies. More often than not, I find myself reading about different aspects of marketing objectives and tactics that just don't line up with each other - and leave you questioning why.

These issues can be magnified by marketing strategy structure - the way the document is split up into separate sections. Without a unifying framework, it's not clear how each strategy is supporting a goal or the analysis on which the objective is based.

Marketing strategy definitions:

Investopedia defines marketing strategy as: Referring to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services.

Market Business News defines marketing strategy as: A company's marketing goals and objectives combined into a single comprehensive plan.

Pestle Analysis defines marketing strategy as: An analysis of all aspects of your sales activity and combines it in a way so that all departments know what is going on.

These 3 definitions highlight the strengths of a concise marketing strategy to align your objectives with your vision, and the benefits for your team. That's why we recommend the RACE framework.

What is digital marketing?

Digital marketing, also called online marketing or internet marketing, is defined by Dr. Dave Chaffey as:

"Achieving marketing objectives through applying digital media, data and technology".

If you're using digital marketing techniques to achieve your marketing strategy goals, check out Dr. Dave's digital marketing explainer to stay up to date on all things digital marketing 2022.

The RACE framework

RACE is a practical framework to help manage and improve results from your digital marketing strategy. Ultimately, it's about using a data-driven approach, applying web analytics and recommended best practices to get more commercial value from your investments in digital marketing.

Notice how we have defined five steps of engagement across the customer lifecycle since in online marketing there is a major challenge in gaining initial interaction and creating those all-important leads after the initial customer touchpoint which can then be nurtured.

Integrating your omnichannel strategy will support your goals of channeling customers through the funnel of PLAN, REACH to ENGAGE, by measuring and tracking the most important touchpoints for your business right now.

If you're looking for a new marketing plan structure that helps you integrate your marketing activities and prioritize channels that generate growth, why not download our free digital marketing plan template?

Marketing strategy example

The chart below is an example marketing strategy using the RACE framework to integrate objectives, substantiation, strategies, and KPIs.

1. SMARTER objectives are not a new concept in marketing. This means committing to quantified objectives that are specific, measurable, achievable, relevant, and time-bound. Likely, grouped around customer acquisition, conversion, or retention. You can use our set digital marketing goals and objectives module to improve your goal/objective setting technique.

2. Substantiation i.e. Evidence proving your goals are realistic based on situational analysis or creating conversion models.

3. Strategies to achieve objectives. Outline the main ways you will reach your objectives. You may wish to follow the strategy, tactics, action, and control format from PR Smith's SOSTAC® structure. It's also worth thinking about the full range of goals indicated by the 5Ss.

4. KPIs and CSFs. The Critical Success Factors are the detailed measures, for example, those collected within Google Analytics which will help you review to prove you're on track or make adjustments. You can use our opportunities to improve usage of Google Analytics module to review and improve your internal Google Analytics capabilities.

I recommend this table layout for aligning your strategies with your objectives since it provides a simple one to two-page summary of your marketing strategy. Much more effective than a long report your colleagues or clients won't read...

RACE has been widely adopted by marketing professionals since it helps simplify your approach to reviewing the performance of your online marketing and taking actions to improve its effectiveness.

Marketing strategy alignment in 2022

Did you know, nearly half of companies don't have a clearly defined digital marketing strategy? But of those who do, the majority have integrated it into the marketing strategy.

Currently, about 12% are still using a separate digital document, which is the first step in the process towards a fully integrated strategy.

In 2022, the stakes are higher than ever - those without a digital marketing strategy, and those using separate digital strategies, risk losing customers to competitors whose marketing is aligned.

Now's the time to streamline and prioritize your marketing strategy for business growth. We've got marketing tools, templates and training to support marketers, managers, and business owners to align their strategies in 2022. Don't wait until tomorrow to start optimizing your marketing funnel, start today.

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Marketing strategy integration: Align your objectives with your vision

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Lack of integration between strategic vision and the tactics needed to get there is a problem I often find when reviewing marketing strategies. That's why I created the RACE Framework as a simple one-page summary to unify your marketing strategy through goals, objectives, and KPIs.