Wolfgang Baier, group CEO of Luxasia, is steering Singapore’s grand dame of beauty retail into a brave new digitally-engaged world
The global beauty industry is facing a watershed moment. From pop star Rihanna’s inclusive Fenty Beauty make-up range to millennial-friendly beauty brand Glossier, upstarts are muscling in on the business of looking good and rewriting the rules of the beauty business.
In Singapore, brand distributor, retailer and e-commerce company Luxasia has been introducing some of the finest global beauty brands such as Hermès, Guerlain and Prada to the Asia-Pacific region for the past 32 years. Its cult beauty store, Escentials, continues to stock niche beauty brands such as Byredo, By Terry and Diptyque, and launched its e-commerce site, escentials.com, in 2017.
(Related: Why We're Excited About Escentials' Newly Launched E-Commerce Site)
Traditional retail strategies may not necessarily work anymore, especially among millennial customers, says group CEO Wolfgang Baier. “Millennials are more experimental and willing to try new brands and products.”
To stand out, authenticity is key, he stresses. “It is no longer about each brand trying to out-market one another with broad and general claims, but about understanding consumers to give them what they want, when and where they want it, and keep them coming back for more.”
How did Luxasia make the jump into the digital space?
Wolfgang Baier (WB) Our niche beauty store, Escentials, started as a unique retail concept for discerning consumers. However, given how information-savvy consumers these days tend to prefer doing their research online before they purchase, it was clear that we needed a fully equipped e-commerce site that reflected the luxury finesse of our stores.
What is the key challenge for the beauty industry?
WB The biggest challenge right now is how digital has disrupted the industry. With social media and the increased relevance of key opinion leaders, consumers are more likely to chance upon products based on the influencers they follow. Brands and companies need to be mindful of how to engage and delight these key opinion leaders. That can significantly improve the reach and speed of brand discovery across many markets (though not all), and bring traffic back to department stores where the customer can enjoy the full brand experience. The next step is to allow customers to buy what they want, from wherever they are. It is about the omnichannel consumer experience.
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