In the past two weeks, some of the world’s biggest beauty conglomerates (Estée Lauder Companies, Shiseido, and Coty) have reported a decline in fourth-quarter sales. Even industry leader L’Oréal, which managed a slight 2.5% increase, fell short of analysts’ expectations. In response, many brands are now reassessing their strategies and returning to what made them successful in the first place.
For Estée Lauder Companies, this means doubling down on legacy brands like Clinique and MAC Cosmetics, ensuring they remain relevant and appealing. Shiseido and L’Oréal, on the other hand, are actively working to win back their core customers, who have drifted towards the latest viral beauty brands.
If these powerhouse companies are experiencing a downturn, it’s a reminder that fluctuations in sales aren’t necessarily a reflection of your business doing something wrong. Economic shifts, changing consumer behaviours, and market saturation can all impact revenue. The key to resilience? Going back to what works and stabilising your core offering.
Rather than chasing the next big thing, now is the time to refine your strategy and lean into proven successes. Here’s how:
1. Drill Down on Consistent Performers
Identify the products or services that have consistently delivered strong sales and brand loyalty. These are your reliable revenue drivers—the ones that stockists and customers return to time and time again. Prioritise these over experimental or niche offerings.
2. Go All In on What Drives the Most Revenue
Instead of spreading resources thin across multiple initiatives, focus on amplifying the areas of your business that bring in the highest return. Whether it’s hero products, signature treatments, or best-selling services, dedicate your marketing, sales, and operational efforts to reinforcing these strengths.
3. Avoid ‘Shiny Object Syndrome’
It’s tempting to jump into new product development (NPD) or introduce another distribution channel in hopes of increasing sales. However, launching new products or venturing into untested markets during a downturn can be risky. Instead, optimise and strengthen what’s already working before introducing additional complexity.
4. Increase Touchpoints with Loyal Stockists
Your stockists and existing partners are already invested in your brand. Strengthen those relationships through increased communication, targeted promotions, and additional education or training. A proactive approach can help drive more sell-through at the retail level and reinforce your value to their business.
Sales downturns are an inevitable part of business, but they don’t have to spell disaster. By refocusing on your core offerings, reinforcing your strongest revenue streams, and resisting the urge to chase trends, you can navigate uncertain times with stability and confidence.
When in doubt, remember - success leaves clues. If a product, service, or strategy has worked for your brand in the past, it’s likely the key to future resilience as well.
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