International Development Strategy: How to Successfully Establish Your Beauty Brand?

Cosmetics are not like other sectors. They respond to a universal and growing demand: the search for well-being. All over the world, whether in Asian countries, the United States, developing countries in Africa or various European countries (East or West), consumers share a common need: to obtain quality beauty and skincare products, renowned for their effectiveness and with strong brand recognition.

Given the reputation that France possesses in terms of cosmetics and beauty care among international consumers, but also due to the growing demand for these products on the Internet, it is clear that any brand established in France has every interest in implementing an international development strategy.

Why implement an international development strategy as a brand in the cosmetics sector? What methods and levers should be activated to ensure the success of internationalization? How to engage a community of consumers in a foreign country?

The Cosmetics Sector: Why Develop Internationally as a Brand?

Cosmetics: A Growing Online Market

The beauty market is a booming sector, and proof of this is that 31.3% of consumers purchased at least one cosmetic product online in 2022, making the beauty sector the 4th largest e-commerce market in terms of customer volume.

Consumers now prefer to buy products online, which contributes to the growth of the cosmetics market. But this growth is also at the expense of in-store sales, as cosmetic products in physical retail outlets have seen their sales continuously decrease for several years. In 2020, physical stores in the circuit (perfumeries, department stores) recorded a 26% drop in their beauty product sales. And the successive lockdowns added to the rise of e-commerce have been responsible for this large-scale decline.

However, the sector is doing quite well: according to the latest estimates, the global cosmetics market is expected to be worth 863 billion dollars by 2024 (Zien Market Research study). L’Oréal remains the world leader in the cosmetics market, with a turnover of over 30 billion euros in 2021.

This economic sector benefits from the momentum driven by influencers and product innovations, constantly reinvented and updated in light of the latest trends. The beauty market is therefore a commercial sector with strong potential for which consumers are willing to pay!

Add to this the increase in digitalization, an ever-stronger expansion of online distribution channels, a trend towards “consuming less, but better”, and an increase in demand for personalized and high-end care products, including in foreign markets.

Let’s also remember that the pursuit of well-being has become a priority for many people, in France and internationally. Aware of the importance of taking care of their mental and physical health, and how it can affect their quality of life, consumers are turning to beauty products to feel better in their body and mind.

Foreign Consumers: Undisputed Fans of French Quality

The growing demand for cosmetic products is even more pronounced in foreign markets, among Asians, closely followed by North Americans and Western Europeans.

And when it comes to the most sought-after references, French brands clearly have the upper hand.

France is, in fact, the leading exporter of cosmetic products, with a turnover of nearly 15 billion “euros.” The best-selling products for export? Skincare products, perfumes, and eau de toilette: a business that “is not about to” collapse!

The success of cosmetics exports by France can be explained by several reasons:

• The reputation of French quality and the presence of iconic brands of international renown: Chanel, L’Oréal, Dior, Guerlain, Lancôme, etc… brands synonymous with French expertise, quality, and commercial innovation;

• The perception of a certain naturalness of products and France’s expertise: French cosmetic products are perceived as more natural and environmentally friendly, but also of better quality, hence this enthusiasm internationally;

• The desire to appropriate a bit of French elegance and chic: foreigners who buy these products are, in a way, seeking to appropriate a bit of this French art of living, hence their desire to purchase products made in France.

In terms of figures, the latest study by FEBEA confirms it: exports of cosmetic products made in France increased by 18.8% in 2022, reaching a turnover of 19.2 billion euros. The cosmetics sector, which records a balance of 15.6 billion €, ranks third among contributors to the positive balance of foreign trade!

The main importing countries of French cosmetics remain the United States, followed by China (especially in terms of lipsticks) Germany, Spain, United Kingdom and the United Arab Emirates. These are important markets with high potential, “hence the” importance for French cosmetic brands to develop their commercial activity in foreign markets!

International Development Strategy: Essential Steps to Successfully Establish Your Cosmetic Brand

In a context of increased competition in the French territory, international development is a real strategic asset for companies wishing to stand out and strengthen their activity, while ensuring their growth. Where to start internationalizing one’s activity? How to acquire new market shares and avoid commercial “failure”? Is it possible to engage communities in another country? Here are the essential points to ensure your international development plan, step by step.

Establishing a Business Internationally: Possible Options

In the context of international development, several options for establishing in foreign markets are possible for a business:

• Direct export;
• Indirect export;
• A system of franchises and licenses;
• Establishment of production sites;
• A joint venture with a locally established partner, etc.

The choice of establishment in the foreign market will be made according to the regulations in force in the target country, but also in view of the company’s financial resources and its business objectives. As acquiring market shares abroad is still complex, it is important to carefully prepare your international commercial development.

For example, in China, it is almost essential to go through a joint venture with a Chinese partner to avoid regulatory barriers and cultural differences.

In the case of selling cosmetic products abroad, numerous resources are available on the businessfrance website, and allow for refining a strategic plan and each stage of internationalization.

Country Selection, Analysis and Study of the Local Market

Once the development project is established, it is essential to decide on the country or countries where the company intends to distribute its products and develop its activity. The choice of destinations must be made according to the brand’s offer, but also and especially the evolution of the market and the needs of local consumers, to ensure the acquisition of market shares.

In case of doubt about the financial viability of the project, it may be wiser to choose a neighboring country initially, in order to refine the plan and strategy for international development later. It is also possible to start with a commercial development of the activity in a specific geographical area (a region, a group of metropolises, etc.), especially if the country is very large (like the United States or China).

Once this choice is made, it is necessary to conduct a complete analysis of the needs of consumers in the country. Indeed, local culture and trends vary greatly from one country to another, and the acquisition of market shares in the sector will depend on the adequacy of the products with the real needs of the locals.

Collect Comprehensive Feedback and Reviews: Surveys, Questionnaires, and Co-Creation

Establishing and acquiring new markets in another country or specific geographic area requires adapting to the local consumer demand and expectations, which are often quite different from those in France.

Once the market analysis is completed and the distribution products are chosen, it’s time to “test” in situ how well these products match consumer expectations. The step-by-step implementation of the Trustt ambassador program allows for the launch of product missions and events (or product or event campaigns) aimed at consumers and content creators.

The mission will thus allow:

• Collecting opt-ins and thereby enriching the database;
• Gathering detailed consumer insights;
• Having selected individuals test the product(s) or organizing brand events to boost your activity;
• Receiving authentic and comprehensive reviews on product pages, sources of valuable information and customer reassurance;
• Benefiting from the dissemination of social media posts by content creators (on Instagram, TikTok, YouTube, etc.).

Product missions can also be used for co-creation with the most engaged ambassadors in the community.

Engaging International Communities as a Cosmetic Brand

Engaging a consumer community is an essential lever for gaining brand awareness and customer reassurance, especially in the case of international market development strategies. Community Led Growth“” is a strategy based on consumer engagement as a means of gaining visibility and improving e-reputation at a lower cost, but on a large scale.

In a context of market saturation and rising advertising costs, it is now essential for cosmetic brands to implement a community development strategy in the target country to engage committed consumers who are ready to become true brand ambassadors. Forming an engaged community indeed helps to support and develop product awareness in these new markets.

Community engagement abroad is not only possible but essential. And the Natura brand is a concrete example: discover how Natura succeeded in deploying its brand and engaging communities in France and Germany thanks to Trustt.

Understanding Consumers to Engage Them Long-Term

To engage consumers, it is first necessary to understand their expectations and needs. These demands differ from one country to another for cultural, economic, social, and even religious reasons.

Collecting comprehensive consumer insights in the target country or markets is a necessary prerequisite for a successful international development strategy.

With the Trustt tool, it is possible to launch product or event missions for consumers and content creators in the target country.

These missions, also called “campaigns”, contain customized questions based on the data brands need: consumption habits, average basket size, sites where consumers buy their products, brands used, issues encountered (dry skin, imperfections, wrinkles, etc.)…

The responses to the form not only help establish quantitative data on personas but also allow for the subsequent selection of those most likely to test the products and give their authentic opinions.

Telling the Brand’s Story, and Most Importantly, Telling the Consumers’ Story

While storytelling is a marketing method already known for its effectiveness on consumers’ perception of brands, it’s also important to consider storymaking. Storymaking involves brands highlighting “the story that consumers experience with the brand’s products”. And this strategy has a direct impact on commercial activity and sales!

Concretely, this can involve highlighting UGC (User Generated Content) shared by consumers and content creators: on social media, product pages, the website, or the brand’s communication materials. These will be particularly useful for developing business activities with distributors or local partners.

In the case of product co-creation with consumers, it’s also relevant to mention this on the corresponding product page. This is notably what Lush did with its famous Toby’s Magic Cow bath bomb, created thanks to and with feedback from a customer member of the Lush Community.

Launching an Ambassador Program in a Foreign Country to Establish Brand Awareness

Ultimately, while the internationalization of a cosmetic brand requires strategic preparation regarding the choice of location and the practical aspects of selling in the targeted country or markets, the success of the project will depend, in fine, on consumer perception and product awareness.

Through a Trustt ambassador program on the brand’s website, it is possible to:

• Collect proprietary data in bulk to improve products and customer knowledge;
• Develop its customer database abroad and map it via community CRM;
• Gather consumer reviews (text or video) on product pages (and e-retailers), to be reused on all communication materials;
• Benefit from the visibility of content creators and the distribution of quality UGC (social posts on TikTok, Instagram, YouTube, etc.);
• Test formulations and/or packaging before launch;
• Organize brand events to strengthen the connection with community members,
• etc.