AN OUTCOMES-BASED APPROACH IN BEAUTY: AN OPPORTUNITY FOR PHARMA



The beauty industry is shifting to a new results-based paradigm from the dominant “hope in a bottle” model. Beauty buyers want visible results and this changed behaviour presents a major opportunity for pharmaceutical companies.

Beauty, especially skincare, now competes in a new cosmetic world increasingly defined by, and measured against, pharmaceutical and medicalised products and tech devices. But it will not be all plain sailing as there are also negatives.

Our findings - Outcomes-Based Approach in Beauty (An Opportunity for Medicalised Beauty) are explained in five themes:

Theme 1) What outcomes beauty buyers want The new paradigm explains consumers' expectations - the results wanted. We present the outcomes the beauty buyers want, their biggest beauty problems. We show how even the beauty terms and vocabulary used by people has changed in line with the paradigm.

Theme 2) What beauty products are delivering the results that buyers want See the new categories, products and entirely new solutions which deliver the results that buyers want, most of which have come from outside the 'legacy cosmetic box'.

Theme 3) Pricing power Learn the pricing power of products that deliver results wanted by buyers. We examine prices and pricing in this new (results based) beauty paradigm.

Theme 4) Communicating new beauty Learn how the values and benefits are being communicated to beauty buyers, as marketing/advertising is no longer effective.

Theme 5) Market value We determine the value of the outcomes-based beauty market which dwarfs the legacy beauty market.

This analysis presents both a strategic overview of and a granular perspective on the outcomes- based approach of beauty buyer. Our findings are based on our on-going interviews with beauty (hair and skincare) category experts and our proprietary consumer intelligence. products, the very core of the beauty market, are being challenged and changed by developments from outside of beauty.

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