Wellness and Beauty Brands; How the Industry is Evolving

During 2020 we saw self-care take increasing priority in response to the global pandemic, and in turn, the convergence of beauty, nutrition and wellness is continuing to soar. The demand shows that consumers are more focused on including wellness into the brands they use daily to support preventative measures, maintain daily rituals and provide immunity-boosting solutions. This has created a challenge for existing brands and an opportunity for new and emerging ones.  

Lindsay Madden-Nadeau, Founder of Meraki Bespoke Wellness Strategies and Catherine Collin, the founder of beauty and wellness brand strategy firm, Constellar Consultancy, discusses some of the challenges and opportunities that beauty brands face in the current market.

Is 'wellness' a vital component to the future positioning of beauty brands?

Existing spa and beauty brands are questioning their current positioning. The categories of 'beauty brands' are expanding more rapidly than ever, and brands are trying to find out how they can incorporate wellness into their DNA and protocols.

Lindsay explains that more and more clients are trying to drive wellness into their brand in a panic, feeling that they won't be relevant if they don't. But there is an alternative perspective.  

"We encourage brands to focus on what they’re good at and then understand what wellness means to their brand and their positioning. Jumping the gun and trying to be too many things will end up losing brand credibility," explains Lindsay. "Do it authentically and appropriately, complementing and enhancing the existing brand. If wellness has a place, it will happen organically. Too often, we see brands trying to own a space that isn't theirs. If skincare is what you're good at, then stick to skincare."

Catherine adds, in the last 10-15 years, brands have already been venturing into the cross-over between the beauty and the wellness industry.

"We feel all brands should incorporate a wellness-focused solution within their strategy. However, if wellness is not a core pillar, then there is no need to change direction if it isn't relevant to your brand ethos.  It's about understanding that the “well factor" is physical wellbeing, emotional and environmental. We work with brands to incorporate one or all of these into a considered strategy, depending on what is most relevant." 

What does it take for a brand to have the 'well factor'? 

In the current market, large retailers have built dedicated sections for wellness either online or in their stores. It has created an opportunity for beauty brands to merge into wellness and wellness brands to expand into the beauty segment.  

This raises the question that Catherine asks all their clients at Constellar Consultancy, 'Does your brand have the well-factor?', a term coined by Sarirah Hamid, their Head of Digital. 

This element of wellbeing can extend to every beauty brand. They need to consider what "well-factor" means to their business. It's no longer confined to CBD teas or bathing rituals used as self-care. It is a holistic approach that considers the social and environmental aspects of a brand. Examples of this could be 'Is your lipstick empowering your consumers and giving them confidence when they wear it? If so, that has to be incorporated into your sales strategy. 

Other brands have solution-focused aims such as treatments for acne, rosacea or eczema. This solution is inherently part of their well-factor as they enrich their consumers lives by helping support them with specific concerns. We see existing brands like Aromatherapy Associates moving towards the B Corp movement, an intensive process certifying recognition of social and environmental performance lessening their impact across 80 different areas - a force for good, purposeful business model.

There are various ways to measure your well-factor and understand if positioning wellness in your brand is the right fit.

The movement of beauty brands towards Eastern Philosophies

Eastern Philosophies have always been well respected and favoured by Western cultures. For years spas outside of Asia have been trying to replicate the healing hands and aromatic scents of lemongrass with ginger tea and honey. 

A sensory journey that brings the Western world a small taste of Asia without the 20-hour journey. Catherine reminds us that there is a consumer driven need for Holistic and Alternative medicines when it comes to creating new beauty brands. Traditional Chinese Medicine and Ayurveda are the favored philosophies that founders are bringing on board due to an increasing interest in these modalities and their multitude of proven benefits. 

Until about four years ago, only a handful of reputable brands focused on Eastern Philosophies and did it well. Tara Holistic Skincare was one of the first Western brands to show up, bringing ayurvedic principles, ancient philosophies and 21st-century science-based biotechnology using natural ingredients for focused results. Similarly, Subtle Energies Ayurveda Aromatherapy began its debut using rare aromatic Indian oils used in a more clinical environment before making its mark in luxury spas worldwide.

Infusing these modalities into beauty or skincare brings more than just glowing and radiant skin. It brings a depth of ancient philosophies and practical and trustworthy treatment protocols dating back 5,000 years, inspiring a lifestyle focused on wellbeing in a natural and organic way without the need for synthetic chemicals or harmful ingredients. What more could a consumer ask for? 

How the Western world has translated Eastern Philosophies and how they have elevated their brand.

Pre-pandemic, the focus on daily ritual was present; however, the value of daily ritual increased when we became an indoor generation, allowing us space to reconnect with a new daily routine that would support our lifestyle change. It was then that the Eastern Philosophies and their way of life became so much more desired to a group of people who may not normally have paid much attention to this. As we slowed down and paused our hectic lives, establishing a daily ritual was fundamental to our state of mental health. Acting as a crutch while we adapted to the pandemic is also why these brands have continued to grow as people could easily relate to them. The consumers not only adopt a skincare brand, but they also adopted a philosophy of life.

Catherine explains that premium brands like Mauli Rituals engage their consumers on their platform to share these rituals as an enhancement to using their products. At the same time, Soma Ayurvedic makes it their mission to support the local communities, making a positive impact by donating with every purchase, which again offers more than just skincare.

As we reflect on other natural Eastern Philosophies, traditional Chinese Medicine remains a strong contributor in the spa and beauty market. Based on the principles of balancing forces of yin and yang, Daoist facials are making an appearance using a natural technique called cupping and combined with facial acupuncture. This modality is used to increase circulation, stimulate the muscle and increase your 'Qi' or vital force energy. 

Sulwhasoo, a holistic retail skincare brand, is deeply rooted in Korean Herbal Medicine, a philosophy inspired by Asian's profound wisdom for restoring balance in the body and creating harmony. Ingredients like Korean Ginseng and Red Pine have been intensely researched through studies called 'Ginsenomics™', a skincare that promises visible results using cutting edge technology.

Another favourite is the Gua-Sha Facial, a method quickly adopted and translated by the Western beauty world. Originating from China and known as a 'scraping technique', this can typically be a very uncomfortable treatment. Using a bone, coin or spoon, this treatment was used years ago in the farmers' fields when they collapsed from heatstroke or when people came down with the flu. The friction of the superficial skin layer increased blood circulation to the surface and, in return, detox any bad blood in the area. The result on the skin is a sensitive reddish-purple graze with tiny broken blood vessels and hope for a decrease in tension. When done in the beauty world,  the experience of uses predominantly a Jade or Rose Quartz stone to firmly massage the skin, increasing circulation and firming the skin resulting in facial skin rejuvenation.

"As more 'Western' brands adopt these modalities, they risk cultural appropriation. To stay authentic to the origins, culture and traditions, these techniques should be implemented and administered by trained professionals," says Catherine. "Eastern philosophies use methods to bring the body and mind back into balance. These should be incorporated into your brand with proper understanding and training in this area. Culture is meant to be shared, not taken."

Wellness is an ever-evolving and multi-layered industry, and it may or may not be the right fit for your brand. There are plenty of examples where wellness works within a brands DNA, and there are other instances where focusing on what the brand is good at means they stay authentic to their offer. And that's ok too. Wellness is here to stay, but instead of pivoting too quickly, which could be detrimental to your brand, make strategic choices that will allow you to move into this space organically.