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credit: istock Retail The direct-to-consumer model A new breed of direct selling More brands are looking to sell directly to the consumer, either through their websites, stores or beauty parties. How successful are these new distribution channels? by Naomi Marcoulet he model of brands selling directly to capabilities, as well as their retail partners and disrupted by technology and changing lifestyles. Tconsumers has evolved with the internet, their own retail components,” says Kline & Co The internet is also giving rise to a host of mobile and branded standalone stores fueling senior associate Donna Barson. new ways of selling beauty, such as through growth, while the traditional sales representative social networks. “What we are going to have format is in decline. The person-to-person sub- Web-only brands in the future is more social-media shopping. channel of direct selling in the US saw a 7% As a driver for sales, the internet has naturally Pinterest and Instagram just announced that decrease in CAGR between 2009 and 2014, become fertile ground for breeding a new they are going to start having buy buttons,” according to market-research company Kline & category of beauty brands selling directly to comments Barson. “I anticipate there are going Co. This is while sales in the internet/mobile sub- consumers on their websites. Make-up line to be more online brands in the future, especially channel alone experienced nearly a 25% CAGR Stowaway is one of a throng of young brands in make-up, where there is going to be more over the fve-year period. Total beauty sales selling from its own website. Stowaway’s augmented reality.” through the direct-sales channel reported a 6% strategy taps into the heart of digital and “You had your Avon or Mary Kay lady and CAGR during the period. Total US beauty sales consumer trends. “From a business-model then over time it could become a digital through the direct channel in 2014 are valued perspective, our positioning is focused on experience. To me the [internet brand] is like the at $2.1bn at the manufacturers level and are changing the way beauty is sold through direct younger sister of these propositions,” comments expected to grow over the next fve years, driven relationships with customers. We see an under- WSL Strategic Retail ceo Wendy Liebmann. “The by internet and mobile beauty sales. “Everybody served market and an entrenched business door has been opened to this and we have a is so multichannel. It is important for marketers model that can be improved upon,” says particular younger consumer who sees this as a to be wherever their customers are shopping Stowaway ceo and co-founder Julie Fredrickson, comfortable space for them to play. And then of so most brands have their own e-commerce highlighting how the industry has yet to be course there is the power of beauty n n n November-December 2015 - N°24 - BW Confidential 65