The best channels of distribution for your beauty brand

Distribution is so key to the success of your brand. There are several distribution options for beauty. Each has its advantage and disadvantage which should be reviewed as there is cost associated with each.

Rethinking retail beauty

Prior to Covid 19, many beauty retailers had already started rethinking retail beauty. There was a new emphasis on creating an in-store beauty experience and AI was driving that movement with notable success. At the same time, Beauty online was also growing and experiential with the use of AI.

When deciding which distribution channel is appropriate, one key factor that should be considered upfront is the cost of entry.

Channels for distribution

Branded websites

Brands can opt for direct to customer sales through their branded website which requires management of inventory and supply chain.

One option is selling through your website but fulfilment by a third party, which also requires some management of the supply chain.

Brick & Mortar or retail partners

Many brands love the idea of going right to brick & mortar or retail partners, this is the most costly of all distribution options and requires a good understanding of the retailer requirement.

Online and retail

Both online and retail can be an option with consideration for the timing of launching each distribution channel. Additional options include distributorship or a combination of all mentioned. Starting your business online can be an excellent way to start.

Celebrity Hair Care

Celebrity Hair Care brand made a presentation to a major retailer to stock their haircare line. The retailer agreed, but six months after launching with the retailer the brand was almost bankrupted.

This happened because the brand did not fully understand some key elements of doing retail business such as returns, damages, forecasting, and logistics.

Some brands have successfully made the transition into retail with a specific retail strategy. This includes choosing retailers that align with the customer base, starting with specific store selection and product selection.

https://www.glossy.co/beauty/inside-paulas-choices-strategy-for-expanding-beyond-its-hero-products/

Check out Sally Beauty’s Carolyne Guss on their pandemic-friendly rebranding.

https://www.retaildive.com/news/macys-revamps-in-store-beauty-to-challenge-sephora/523950/

If you’d like to learn more about building a business strategy in the beauty industry, check out The Hopenclass online course, below.