The younger customers (even teens and tweens) that TikTok has forced to seek out beauty products for adults have proven to be a mixed blessing for retailers like Sephora and Ulta.
Retail analysts say that as beauty stores attract a new generation of shoppers, they must provide a satisfying experience for their core older customers, including some who don't like stores full of teenagers and tweens.
“A huge part of luxury and prestige is the experience,” said Simeon Siegel, retail analyst at BMO Capital Markets. “What makes an adult feel special is very different from what makes a college student feel special, and dramatically different than what makes a teenager feel special. It’s important to make sure it reaches all generations.”
According to a survey released in October by investment bank Piper Sandler, American teenagers said Sephora was their favorite beauty retailer, surpassing Ulta. The survey found that teen respondents will spend 23% more on cosmetics, skincare and fragrances in 2023 than the previous year.
Teens and twenties, especially girls, have always been experimenting with and spending money on skin care and makeup. But the recent shift from drugstore mascaras and blushers to luxury serums and lotions carried by Sephora and documented on TikTok has increasingly made younger customers want to buy these pricey products when they see their friends doing the same. .
But some dermatologists are questioning whether young customers need all the skin care and makeup products they buy from retailers like Sephora. They say that at that age, the skin is sensitive, and using too many products can cause irritation. Skin care routines that include ingredients like retinol or multiple steps may not be appropriate for teens, they note.
In recent months, social media has been abuzz with gleeful, sometimes violent stories of groups of middle schoolers buying expensive serums and moisturizers.
While shopping at Sephora in Las Vegas this year, an eighth-grader talked about her skin care routine. These included Drunk Elephant's pricey cream and Glow Recipe's watermelon-scented toner, which contains chemical exfoliants called polyhydroxy acids (PHA). The girl didn't know what those ingredients did, but the product “smells really good,” she said. She asked her parents to buy her toner after seeing it on her social media.
Artemis Patrick, who will take office as CEO of Sephora North America on April 1, said that the interest of young customers was both an opportunity and a challenge.
She told reporters this week: “I think Sephora, like any brand, has a huge responsibility to make sure we educate future consumers about what’s right.
Sephora is training store associates on how to advise shoppers, she said, adding, “Sephora is committed to helping new consumers know that this is right for your skin.”
Ulta also ensured that younger shoppers filled its stores. The company said it has added displays and educational guidance, including recommendations from dermatologists, in stores and online.
“While we love seeing teens and tweens embrace skin care and establish healthy beauty habits early on, we want them to engage responsibly in this category and focus on the best solutions for their skin care needs,” Ulta officials said. “We want to be able to access information about it,” he said. name.
Ms Patrick's takeover of LVMH-owned Sephora means the company is experiencing an influx of younger shoppers as well as expanding its presence in suburban areas. Patrick, 52, is currently president of Sephora North America and has worked at the retailer for 18 years.
Since the beginning of the pandemic, when people increased their spending on makeup and skincare, Sephora has maintained double-digit growth in its e-commerce business, Mr. Patrick said. Retail traffic also increased, thanks to TikTok and the company's advertising.
Over the past three years, the beauty retailer has been pushing to expand beyond urban spaces, partnering with department store chain Kohl's and now operates mom-and-pop stores in about 910 locations.
Kohl's announced that it will open Sephora stores in all its stores by next year. On Tuesday, the department store chain said Sephora sales at Kohl's stores generated more than $1.4 billion in sales in 2023.
Despite Gen Z getting a ton of attention, Ms Patrick said young people's interest in beauty is nothing new. During her studies abroad in the early 1990s, she asked her friend to bring her lipstick from MAC Cosmetics in the United States.
Likewise, her 13-year-old daughter, like many of her friends, is interested in skin care and said she carries products like Supergoop sunscreen in her backpack.
“There has always been a youth obsession with their mothers’ or guardians’ beauty products,” Mr Patrick said. “The reality is, they know what they know, and they know what they want.”
Madison Malone Kircher contributed to the report.