Second-hand fashion is fast becoming the norm in the luxury space as brands from Rolex to Balenciaga build circular strategies to control this flourishing market. But what about beauty? How can fragrance and cosmetics’ brands adopt circular strategies to combat overconsumption and overproduction? What business models should they apply to master the recommerce channel, combat counterfeiting and boost consumer loyalty? Capgemini Engineering takes a deep dive into these issues in its white paper Beauty Goes Circular: The Second-Hand Market for Fragrance & Cosmetics, published exclusively on Formes de Luxe.
“Second-hand cosmetics is a global market worth some $7bn that is slipping through brands’ hands and into those of consumer-to-consumer (C2C) platforms,” noted Emmanuelle Bonardi, Industry & CPRD Presales Director at Capgemini Engineering in a recent interview with this publication.
Indeed, C2C retailers, such as Glambot and Vinted among others, have gotten a head start in the sale of second-hand beauty products, cutting out the brand owners entirely. Will luxury beauty players follow the example of their fashion counterparts to stand up and claim this market? “And if so, what tools will they opt for and what approach will they take to marketing and sales, especially when it comes to price positioning?” asks Bonardi. Capgemini Engineering’s white paper, published here for the first time, examines how a circular ecosystem can meet growing consumer demand for more sustainable purchases and the rise of more stringent regulations, while becoming a source of revenue and allowing brands to control their image. Download the exclusive report Beauty Goes Circular: The Second-Hand Market for Fragrance & Cosmetics here.