In recent years, the vegan cosmetics market has grown at an astonishing rate. More and more ethical and sustainable consumers are choosing products that respect the environment and animals. Fenty Beauty, the brand founded by the famous Rihanna, is at the forefront of this revolution.
In our work, we first defined the difference between a vegan and a cruelty-free product, terms that are often used interchangeably. The former refers to a product that does not contain any ingredients of animal origin, but does not specify testing methods. A cruelty-free product, on the other hand, has not been tested on animals, but this does not guarantee the absence of animal-derived ingredients.
Who are the consumers of vegan cosmetics?
The study focused on women between the ages of 18 and 30 living in Northern Italy. This group has been identified for its propensity to adopt and promote innovative trends in the beauty sector, including the growing demand for vegan and cruelty-free cosmetic products. In fact, the new generations, known for their sensitivity to issues of sustainability and ethics, represent an attractive customer segment for brands like Fenty Beauty that are committed to environmental and animal-friendly production practices. The target we are talking about is not limited to consumers who are already familiar with the brand, but also extends to those who are potentially interested in the values and quality that Fenty Beauty offers.
What questions did we ask ourselves?
We wanted to understand how the preferences of these female consumers could influence the success of a new vegan product launch by Fenty Beauty. To do this, we combined several research methods: from desk analysis, which allowed us to explore the importance of veganism in cosmetics, to qualitative interviews and quantitative surveys.
What does the data tell us?
Combining the input from the in-depth interviews conducted with two industry experts (a store manager from a well-known Sephora store and a category manager from the same company) and six girls from the target audience, we decided to test the launch of a new Fenty Beauty product with the following characteristics: a vegan, moisturising skin tint with SPF and eco-friendly packaging.
The survey, distributed between April and May, showed that the average interest in trying new 100% vegan beauty products from Fenty Beauty was quite high, with a score of 6.70 out of 9. This context is encouraging and suggests good market potential.
However, a worrying output emerged from the Net Promoter Score (NPS) analysis, which showed more detractors than promoters. This suggests that more customers are dissatisfied with the product than are satisfied, so while there is interest, there are some critical issues that need to be addressed. To improve customer satisfaction, Fenty Beauty should implement corrective actions to address consumer concerns.
Data exploration
The sample obtained was analysed using various methods, starting with classical segmentation, consisting of a factor analysis followed by a cluster analysis.
Thanks to the results of the first analysis, we carried out a cluster analysis, a technique of automatic classification into internally homogeneous and externally inhomogeneous groups. This allowed us to segment the market according to the factors previously identified and to define four clusters of consumers, each with distinct characteristics and purchasing behaviour.
The “final cluster centers” table allows us to visualise the main drivers of choice for the different clusters when purchasing a beauty product, which we have renamed and described below.
Finally, to answer our original research question, we conducted a conjoint analysis. This revealed that packaging is the most important attribute for consumers when buying a cosmetic product, followed by price and product formulation. Recyclable materials and bright colours are particularly valued, as is an affordable price.
The utilities table shows utility estimates for different attributes of a cosmetic product, indicating how each attribute contributes to the overall utility perceived by consumers. In particular, it shows that attributes with positive utility values are preferred, while those with negative utility values are less preferred.
In particular, consumers prefer:
• SPF 30 over SPF 50+
• Packaging made of recyclable materials with bright colours
• Moisturising properties slightly more than anti-ageing properties
• Non-vegan versus vegan formulations
• Lower price (€25) compared to higher price (€40)
The final comparison: analysis vs. market
One of the most interesting aspects of the study was the comparison between the product that emerged as the “top choice” from the conjoint analysis and the one actually launched, later, by Fenty Beauty. The question we asked ourselves was which of the two products, shown below, won the hearts of consumers the most.
The two skin tints (Figure 3) differ in terms of packaging colours, price and, above all, formulation. The ideal product determined by the conjoint results is NOT vegan, while the one actually launched on the market is vegan.
(Figure 3)
In the course of our work, before Fenty Beauty actually launched its skin tint, we conducted a simulation to predict how consumers would respond to different hypothetical products. We considered two supply profiles with the characteristics of the two products mentioned.
The results indicated that the non-vegan product is the one preferred by consumers.
This suggests that, despite Fenty Beauty's intention to launch a vegan product to follow sustainability trends, the current market still prefers non-vegan alternatives, especially if they are cheaper.
This discrepancy between stated preferences and actual brand behaviour indicates that there are still barriers to be overcome for vegan products in the cosmetics market, mainly related to price.
Conclusions
To enhance the appeal of their products, the company should:
• invest in eco-friendly packaging in bright colours;
• maintain affordable prices;
• consider preferences towards non-vegan formulations;
• emphasise the benefits of moisturising properties;
• integrate a sun protection factor and emphasise it in marketing campaigns.
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