Social media has revolutionized the way celebrities connect with their fans, providing a direct line of communication that transcends traditional barriers. No longer limited to red carpets and magazines, celebrities can now share their lives, fashion, diet, and workout routines with their followers, while also navigating the challenges of online controversies and managing their digital presence with care.
Influencers: Shaping Consumer Behaviors and Trust
As influencers become a powerful force in shaping consumer behaviors through social media, they are able to connect with their audiences and impact customer choices. The trust placed on influencers by consumers can have a significant impact on the purchasing decisions of their followers. Recognizing this, the Ministry of Consumer Affairs, Food, and Public Distribution has issued guidelines for social media influencers on endorsing products or brands, ensuring transparency and responsible promotion.
Brands and Social-First Approach
Brands are increasingly adopting a social-first approach to their campaigns, as seen with companies like Duolingo and Intuit. Duolingo’s owl mascot Duo has amassed a fan base of more than 6 million followers on TikTok, attracting creators seeking meaningful partnerships. Intuit, on the other hand, taps into the power of a broad range of creators, from micro-influencers to A-list celebrities, to demonstrate the versatility of their products to suit a wide variety of needs.
Understanding and Serving Underserved Markets
First-party data can help brands better understand and serve underserved markets in various industries, such as the US beauty market. By employing personalization strategies that focus on factors important to each market segment, beauty brands, and retailers can develop and enhance customer relationships, create brand loyalty, and strengthen customer lifetime value. Inclusivity has been identified as a key trend to watch in retail and a component trend of the Coresight Research RESET framework for change.
Future Growth and Challenges
As the US beauty market continues to grow, reaching $71.5 billion in 2022 with a remarkable 6.1% year-over-year growth, brands and influencers must continue to adapt and innovate. In 2023, Coresight Research expects beauty spending in the US to see 4.6% year-over-year growth, resulting in a $74.8 billion market. With the power of social media and the influence of celebrities, the potential for growth and connection with fans is limitless, but it requires finesse and extra precautions to navigate the ever-changing digital landscape.