LSN : Daily Signals : NRF 2024 Retail’s Big Show daily recap: Fragrance layering and Shopify’s success stories

NRF 2024 Retail’s Big Show daily recap: Fragrance layering and Shopify’s success stories

Kyle Leahy, CEO of Glossier, at NRF 2024: Retail’s Big Show. Photography by Jason Dixson Photography, US

US – On day two of North America’s largest retail summit, the beauty industry took centre stage, with executives from Ulta Beauty and Glossier sharing insights on what their consumers want from beauty retailers in 2024 and beyond. Dave Kimbell, CEO of Ulta Beauty, highlighted the tech innovations his team introduced recently, from using AI to ‘elevate hair try-on capabilities’ on the company’s app to Prisma Ventures, Ulta’s digital innovation fund launched in 2022, and investing in emerging technology start-ups designed to shape future online and in-store experiences.

Although it is still early days, America’s largest beauty retailer is also considering making its stores more autonomous. ‘We have been testing robotic eyelash extensions to automate that service and make it more consistent and faster,’ said Kimbell. ‘We are also piloting an automated manicure robot and an automated sampling programme too.’

When asked what trends the retail industry should watch in 2024, Kimbell mentioned beauty’s connection with wellness, inclusivity and layering. He explained: ‘With fragrance layering, for instance, we have seen younger consumers come up with unique scents by mixing several fragrances. It’s an expression of their individuality. We’re seeing it in make-up too, with lip layering to create personalised looks that are special to who you are.’

Later in the day, Harley Finkelstein, president of e-commerce platform Shopify, was joined on stage by Glossier’s CEO Kyle Leahy and actress, founder and chief brand officer of travel gear and accessory specialist Béis Travel, Shay Mitchell. Both businesses have found success on Shopify as online retailers. Finkelstein praised how, after only five years, Béis surpassed £157.8m ($200m, €183.6m) in revenues in 2023, with some of its products recognised as the most sold items on Shopify worldwide.

According to Mitchell, Béis’ secret was to think of the brand beyond air travel, listen to its consumers and keep an eye on other creative industries. ‘We pulled inspiration from fashion collections and asked ourselves what sneakers are dropping. [...] Not looking into our own vertical has been extremely good for us. We’re looking at all other categories.’

She also mentioned how pop-up activations, although costly, were a way for her to connect with and reward the brand’s loyal community – with monogramming, speciality drinks and Black Friday deals – while questioning their needs and collecting feedback and data. To read more about the new roles of pop-ups, head to our Next-level Luxury Pop-ups market report.

Strategic opportunity

Use pop-up stores to connect with and reward your loyal community. Consider using ephemeral stores not only as transactional retail spaces but also as opportunities to collect valuable feedback, understand consumer needs and gather data for informed product development

Performance artist Marina Abramović launches longevity-inspired wellness line

The Marina Abramović Longevity Method, UK

Global – Performance artist Marina Abramović has released a skincare and wellness collection based on the key principles of The Abramović Longevity Method, the artist’s series of mindfulness techniques and natural remedies designed to help people achieve their desire to ‘live in the present, long and healthily’.

For the past two decades, Abramović has worked with Dr Nonna Brenner, founder of the Longevity Center in Austria, to keep the artist in the best possible health. Now, the pair are bringing their Tibetan medicine-inspired skincare recipes to market.

Beginning with a limited run of products in packaging designed by Abramović, The Abramović Method collection consists of a nourishing lotion formulated with white bread and white wine and a series of wellbeing drops targeting immunity, anti-allergy and energy, using ingredients such as fresh garlic bulb, grape seed flour and Liquiritiae root dust.

Although some have questioned whether the products are simply Abramović’s latest performance, her surprising venture into the wellness space highlights the appetite for Longevity Lifestyles. The products might use unconventional ingredients, but with Dr Brenner’s name attached, the collection will certainly turn a few health-conscious heads.

Strategic opportunity

Take inspiration from The Abramović Method and collaborate with experts – such as longevity specialists – to enhance product credibility among highly educated wellness aficionados

Vagabond Shoemakers founders donate brand to charity

Sweden – Swedish footwear brand Vagabond Shoemakers has been given to charity in a unique gift from its founders, Marie Nilsson Peterzén and Mats Nilsson, who have donated the entire company to the newly established Vagabond Shoemakers Foundation. With over 30 years of dedication to building Vagabond Shoemakers into one of Europe’s leading shoe brands, the founders aim to support charitable initiatives through this generous gesture.

The Vagabond Shoemakers Foundation will now become the owner of the shoe fashion group, which achieved a sales value of £113.9m ($144.3m, €132.5m, SEK1.5bn) in 2023. This group encompasses in-house design, prototyping, distribution in over 50 countries and a strong portfolio of global trademark rights. The foundation’s unique ownership structure ensures that profits from Vagabond’s operations will be channelled into research, education and charitable projects aligned with its mission.

In a press release, Marie Nilsson Peterzén and Mats Nilsson emphasised their commitment to the brand’s fundamental philosophy: owning the entire value chain, fostering efficiency, sustainability and enduring quality. They believe that this approach will continue to drive the brand’s success while allowing them to make a lasting impact through the foundation, in line with our findings in Nature Stakeholders.

Vagabond Shoemakers, Sweden

Strategic opportunity

For today’s consumers, feeling aligned with a brand’s value system is of paramount importance. Therefore, it is essential that brands find creative solutions to show they are prioritising people and the planet over profit

Stat: Using AI for fun is more widespread than for professional purposes

Gaudism.AI, Global

US – Artificial intelligence seems to be on everyone’s lips in 2024, but what are people using AI for in their day-to-day lives? Research from Morning Consult reveals that over half (56%) of those who use AI do so for fun, as opposed to using AI tools for work or studying.

Besides a penchant for personal use, the study finds that one in five AI users are Millennials (19%), the most represented generation. Most AI users describe their experience with AI tools as largely positive, stating the platforms are easy to use (81%) and helpful (78%). Among user groups who report using AI at least once a month, entertainment and leisure purposes are the most common, in addition to mundane tasks such as helping with ideation or for shopping recommendations.

The fact that consumers are open to harnessing artificial intelligence for personal use, while the adoption of the technology in the professional field lags behind, underlines an opportunity for businesses to work harder in implementing AI in the workplace.

Strategic opportunity

Are you maximising AI use in your business? Consider additional ways to arm your workforce with AI, not only making the right tools available to them, but also providing adequate training and support