Since the late 2000s, self-care has shifted from a niche concept to a driving force in the global market. Post-pandemic attitudes have surged interest in health and wellness, reflecting a robust valuation of $1.8 trillion by the 2023 Beauty State of Fashion report. This thriving industry is projected to grow at a compound annual rate of 5 to 10 percent from 2023 to 2027. With a clearer understanding of the self-care paradigm, consumers now seek a holistic approach encompassing mindfulness, mental health, sleep quality, and well-informed choices regarding beauty and skincare products.
As the self-care category expands, consumer demands have evolved. Recent research from McKinsey & Co. highlights that nearly one in five North American consumers—and one in three Millennials—lean towards personalized products and services within the self-care spectrum. This shift in consumer expectations necessitates that brands either highlight existing product lines or reconfigure their strategies to stay relevant.
Christopher Novak, the president and chief creative officer of Rennaï, emphasizes this transformative landscape. “One of the biggest shifts in consumer behavior is just how knowledgeable the customer is today, whether that knowledge is informed by fact or hearsay,” he stated. This indicates a significant reversal in the dynamics between brands and consumers. Whereas brands once dictated what consumers required, today’s savvy consumers are arriving with specific needs and preferences.
A notable example of this evolution is the new beauty and self-care retailer, Rennaï, which opened its flagship store in Royalmount Montréal in September 2023. The 36,000-square-foot space features over 175 brands and is designed around the “5 Realms of Rennaï,” focusing on beauty, fragrance, self-care, wellness, and product efficacy. This innovative store also houses an exclusive in-house medical aesthetic clinic and marks the beginning of a series of planned North American openings over the next five years. The store is strategically designed to enhance consumer education and inspiration, allowing customers to explore and define their personalized beauty and self-care routines.
Rennaï’s philosophy revolves around creating a discovery-driven customer experience. “Our store realms exist because we want consumers to be immersed in that category or product or experience,” Novak explained. By fostering an atmosphere conducive to inquiry and knowledge-sharing, brands like Rennaï are setting a new standard in consumer engagement, emphasizing the importance of expertise and authenticity.
To explore changing consumer needs in the self-care sector, BoF and Rennaï organized a recent panel discussion moderated by BoF’s Alice Gividen, featuring industry leaders from various brands. One focal point of the discussion was the need for brands to balance marketing innovation with consumer education. Dr. Julian Sass, a cosmetic scientist and brand consultant, highlighted that introducing new innovations requires careful preparation. “It’s an investment for brands, but the payoff can be absolutely immense,” he noted.
Furthermore, a recurring theme in the conversation was the necessity of human connection in consumer interactions. Christiane Werron, Augustinus Bader’s global head of spas and clinics, emphasized that while consumers prioritize clinically proven ingredients, their final purchasing decisions often hinge on the human touchpoints—a stark reminder that beauty remains an inherently personal journey. Werron elaborated on the importance of thorough and thoughtful customer education, especially given the overwhelming product offerings flooding the market.
Brands are also recognizing their responsibility to provide holistic experiences that encompass education, efficacy, and ethical values. “From a brand perspective, spending time deep in the comments on socials keeps you very close to the customer, their feedback, and their demands,” said Lauren Edelman, global chief marketing officer at Victoria Beckham Beauty. This approach has noticeably shaped product development at Victoria Beckham Beauty, where direct consumer insights guide innovation.
The intersection of marketing strategies and consumer understanding is no longer a luxury; it is a necessity for survival in the competitive self-care market. Brands are increasingly leveraging technology, such as AI-driven consultations, to cultivate deeper connections with consumers and enhance the personalized shopping experience. “To be on the winning path, brands need to build that connection with the customer,” Werron stated, noting that the modern consumer expects a more enriching experience with their self-care routines.
As brands travel through this continuously evolving landscape, community-led research and development are emerging as vital strategies. Sass pointed out that it is crucial for brands to align their innovations with long-lasting consumer trends and concerns. Recent discussions underscore the rise of terms like “cortisol face,” which references effects of stress on skin health, prompting brands to seek solutions that cater to this evolving narrative.
Moreover, the conversation around sustainable and ethical beauty is gaining traction. Brands that convey authenticity and transparency regarding their values and practices are more likely to foster loyalty among informed consumers. A shift towards ingredients and products that customers can trust has never been more critical in this marketplace.
As self-care becomes an increasingly integral part of daily life, brands must rise to the occasion. Through thoughtful innovation, authentic connections, and a commitment to education, those in the beauty sector can meet—and perhaps even anticipate—the evolving demands of today’s consumers.
