ARTICLES
Explore our latest insights on the beauty, luxury, and lifestyle industries. At Carrara Advisory, we combine decades of hands-on experience with deep market understanding to provide actionable perspectives on strategy, innovation, and growth. Here, we share our thinking on the trends, challenges, and opportunities shaping the future of your business.
Beauty’s Resilience: Thriving in a Changing World
The beauty industry continues to thrive, projected to nearly double in size over the next decade, driven by innovation, wellness trends, and digital transformation. While categories like skincare, haircare, and nutri-beauty show strong growth, global challenges such as China's luxury slowdown and geopolitical tensions may temper progress. The key to sustained success lies in balancing innovation with adaptability to evolving market dynamics.
Cash is King, but it Doesn't Rule Alone!
Cash is crucial for the smooth operation of a business. However, cash alone provides limited insight into a company's overall financial health.
Price Strategy: Navigating Cost of Living, Global Consumers, and Local Brand Appeal
Crafting a global price strategy involves balancing the interplay between local cost of living adjustments, the expectations of informed global consumers, and the desirability of local brands to create a competitive and appealing pricing structure.
Beauty Industry Price Trends: Are We Finally Seeing a Slowdown?
After a period of continuous price hikes, there’s a hint that price increases in the beauty industry may be stabilizing. This may be a turning point where value, innovation, and consumer-centricity lead the way in the beauty industry.
Hermès’s Diversification Dilemma: Can Luxury’s Crown Jewel Keep Growing?
Hermès’s reliance on a couple of categories and geographies raises questions about the brand’s long-term growth. With economic uncertainty in Asia and a potential plateau in other key regions, Hermès’s strategy to sustain its high growth rate faces increasing pressure.
Estée Lauder's Hidden Strengths: Is a Turnaround on the Horizon?
Estée Lauder’s struggles have dominated headlines, but are investors overlooking positive momentum? With key performance indicators improving, the company might be poised for a stronger recovery than expected.
Skin Health Positioning Wars: Eco-Friendly Push vs. Clinical Dominance
Kenvue's Neutrogena is embracing sustainability and targeting Gen Z with innovations like the Collagen Bank line, while also enhancing dermatologist partnerships to reclaim trust. Meanwhile, L’Oréal's CeraVe continues to lead in dermatologist endorsements, focusing on science-backed skincare that drives global consumer loyalty.
The Reality of Tariffs: Challenges Beyond the Principle
While tariffs can help balance trade, their impact is limited by factors like volatility and the challenges of scaling up local production. Proper execution and consideration of long-term resources are crucial for tariffs to have a meaningful effect.
Navigating Change: Agility is the Competitive Edge for Beauty Brands in 2024
In a landscape shaped by inflationary pressures and regional shifts, beauty companies are finding new growth paths. Brands like Puig and Interparfums stand out with double-digit growth, thanks to their agility and strategic resource allocation, while others grapple with adapting to evolving consumer demands.