- Millennials are known for shopping around rather than sticking to one brand.
- Their shopping habits have created an opportunity for emerging brands to enter the market.
- In a recent survey conducted by Goldman Sachs and Conde Nast, a group of consumers between the ages of 13 and 34 were asked to list the new brands that they are hearing about or shopping at more now versus last year.
Millennials may have lots of good qualities, but brand loyalty isn’t one of them.
This generation is known for their tendency to shop around, and the rise of e-commerce and mobile shopping has given them the necessary tools to do so.
While this may have created a tougher environment for legacy brands, it has also given more opportunity for newer brands to enter the market.
In an annual survey conducted by Goldman Sachs and Conde Nast called the Love List, a group of consumers between the ages of 13 and 34 were asked various questions about their shopping habits and preferred brands. 1,489 US consumers, as well as 1,174 Conde Nast “It Girls” (a group of Conde Nast readers who tend to be more affluent), were surveyed for the report.
In one question, shoppers were asked to name the fashion, athletic, or beauty/grooming brands that they have bought from or are hearing about today but weren’t focused on last year. The results were then split out by established and emerging brands.
Here are the 12 up-and-coming brands highlighted by these consumers:
Skincare brand GlamGlow was originally created for professionals working with celebrities in the entertainment industry. It is now available for purchase online and in stores such as Macy’s, Nordstrom, and Sephora.
It’s best known for its mud masks, which cost between $59 to $79, depending on size.
- Facebook/Fenty Beauty
Rihanna’s beauty brand, Fenty, which is owned by the world’s largest luxury retailer, LVMH, only launched in 2017 but is already making waves in the beauty industry. Its products range from $19 for a lipstick up to $38 for powders. The collection is currently sold online and in Sephora stores in the US.
Operating almost exclusively online, Glossier is leading the way in beauty products. It has attracted more than $86 million in funding since founder Emily Weiss began selling beauty products in 2013. Revenues reportedly tripled from 2016 to 2017.
According to Bloomberg, the company sells one of its popular $16 “Boy Brow” eyebrow shapers every minute, accounting for an estimated $8 million in sales per year.
Known as “beauty that doesn’t break the bank,” ColourPop is an affordable makeup collection that sells lipsticks for as little as $5.50.
This digitally native athletics wear brand, which was co-founded by Kate Hudson in 2013, generates more than $300 million in annual revenue, a company spokesperson told CNBC in July.
It now has plans to open 75 more stores around the world, bringing its total to 100.
- Facebook/Fashion Nova
California-based label Fashion Nova is quickly becoming one of the most-talked-about brands on the internet. In 2017, it was one of the most-searched brands on Google, beating out well-known luxury brands such as Gucci and Louis Vuitton.
While the company actually started as a store, its success exploded when it launched on Instagram and was endorsed by celebrities like Cardi B. It now has over 13 million followers and posts new items several times a day.
- Facebook/The Ordinary
The Ordinary is a skincare brand that’s known for its affordable but high-quality products. It has risen to success by becoming the brand of choice for beauty editors, Instagram influencers, and celebrities like Kim Kardashian West.
Its parent company, Deciem, is partly owned by Estée Lauder.
- Facebook/Milk Makeup
This 100% vegan beauty brand has shot to fame in just two years. The brand’s success is partly down to the fact that it was started by the founders of Milk Studios, a creative agency that has locations in New York and Los Angeles and is known for its buzzy fashion events. This gave the brand a head start in reaching the fashion crowd.
It has a mix of skincare and makeup products. Its best-selling mascara costs $24.
- Facebook/It Cosmetics
IT Cosmetics is a skincare and makeup brand that has been developed with plastic surgeons. The products are designed to target wrinkles, blemishes, and redness.
Its best-selling CC cream costs $38 and is available at Sephora.
- Facebook/Drunk Elephant
Drunk Elephant is a synthetic-free skincare range that was created by Tiffany Masterson, a consumer who found herself disillusioned by what was available in the industry.
Since launching in 2013, it has gained a cult following, and many of its products have become Sephora best-sellers. Its serums cost between $52 and $134.
- Facebook/Sunday Riley
Sunday Riley is a product formulator who set up her namesake brand after being frustrated by the selection of skincare products on the market.
Her products are designed to treat signs of aging, acne, dehydration, and dryness in the skin. They are currently sold through beauty companies such as Sephora and BirchBox and in department stores across the US.
Direct-to-consumer brand Everlane, which prides itself on being transparent about its pricing and manufacturing, is quickly becoming one of millennials’ favored brands.
While the company does not disclose sales numbers, according to Privco, a firm that analyzes private companies, Everlane hit $100 million in revenue in 2016. It was founded in 2010.
The brand now has two stores in the US, in New York and San Francisco.