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in the correct way to consumers as there is nowhere they can
hide from public scrutiny. For brands who have strong ethics,
promote green and eco-friendly practices, and produce high-
quality products, the attention can result in positive buzz that
attracts more consumers and increases their market share.
However, brands who are not able to get their messaging
right or find themselves on the wrong side of public opinion
may find it difficult to win back consumers’ trust once lost.
One example of this phenomenon is the perception that mass
brands are unsustainable due to them being lower in cost
than premium products. This has meant that eco-conscious
consumers such as Gen Z have tended to steer clear of such
products, even though the reality is that many brands in this
sector are actually cutting down on plastic waste and taking
steps to become more eco-friendly and sustainable.

It is therefore important that brands make a conscious effort Each distribution channel has its own advantages and
to counter any negative impressions as quickly as possible disadvantages, which is why it’s vital that brands explore them
through well thought out marketing campaigns and targeted in-depth before making any decisions, and remain open to
messaging to consumers before too much damage is done to considering an omnichannel approach should this be most
their reputation. appropriate.
Now we have a greater understanding of the Beauty and
Wellness market as a whole, it is time to turn our attention to the Bricks and mortar:
distribution landscape and the complexities that lie within it. The Traditional Experience
Historically, American consumers have preferred to buy their
The where’s, How’s and who’s beauty and wellness products from bricks and mortar outlets
of distribution in the uSA such as department stores, beauty specialty stores, drug stores
For many years, mass brands have held the largest share of and pharmacies. While most consumers still do tend to shop in
the USA’s Beauty and Wellness market and continue to do so these locations, the gap between online and offline purchasing
today, though there is a growing potential for masstige retail is shrinking at a rapid pace, with both department stores and
concepts and brands to take a larger percent of the market drug stores/pharmacies seeing a reduction in sales of 4% and
share in the future. Together, mass and masstige brands 2% respectively, while beauty specialists growing by only 5%.
account for approximately 51% of the market, while premium
brands have a share of around 25%. Although the luxury Department Stores
beauty industry continues to grow at a fast pace, this category Masstige department stores own 96% of the doors in the
still remains the smallest at present. USA (3,300 doors), while only 117 doors are owned by the
Given the scale of the market in the United States and the four major luxury stores, Bergdorf, Bloomingdales, Neiman
country’s physical size, it’s not surprising that the distribution Marcus and Saks Fifth Avenue. If combined, the total number
of beauty and wellness products is complex and multi-faceted, of premium and luxury department stores is not far behind
with a wide range of different routes to market available for the total number of masstige retailers, signalling a potential
brands to choose from; beauty specialty stores, department for masstige sales to grow in market share. This trend is likely
stores, drug stores and pharmacies, eCommerce, and TV due to many of the sustainable and 100% organic products
home shopping. demanded by Gen Z being masstige or premium products.

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