Fashion and Beauty Marketing Leaders Confront New Market Realities Amid Economic Challenges

What's Happening?

The fashion and beauty industries are facing significant challenges in 2025, including increased customer acquisition costs and competition for consumer attention across saturated channels. Despite a decrease in inflation, consumer spending on discretionary items remains low due to the turbulent global economy. Marketing teams are under pressure to effectively communicate brand value propositions to encourage consumer spending. Brands that embrace creative risk are more likely to experience long-term revenue growth, according to the Cannes Lions' 2025 State of Creativity report. However, consumer trust is threatened by price hikes, with 73% of US Gen-Z consumers altering their spending habits due to increased prices. The effectiveness of performance marketing has diminished, making it difficult for brands to stand out, especially with new data privacy regulations limiting customer targeting. A knowledge report by Ekimetrics, in partnership with The Business of Fashion, explores these challenges and offers insights from industry leaders on how to adapt marketing strategies.

Why It's Important?

The evolving landscape of fashion and beauty marketing has significant implications for brands and consumers alike. As consumer trust is challenged by rising prices, brands must find innovative ways to maintain engagement and loyalty. The shift in marketing effectiveness due to data privacy regulations necessitates new strategies for reaching consumers. Brands that successfully navigate these challenges can potentially secure long-term growth and maintain their market position. The insights provided by industry leaders in the report highlight the importance of creative risk-taking and strategic pricing, which could lead to sustainable growth and improved brand perception. The focus on cross-generational reach and tapping into underserved media channels also suggests a broader approach to marketing that could benefit both brands and consumers.

What's Next?

Marketing leaders are expected to implement new strategies to address the challenges outlined in the report. This includes fostering cross-generational reach by leveraging psychographic segmentation and interest-based media planning. Brands may also focus on unlocking the full potential of creative campaigns through data-driven frameworks and localised content. Additionally, strategic pricing decisions will be crucial, with CMOs playing a more active role in advocating for customer interests while driving sustainable growth. As brands adapt to these new realities, the industry may see shifts in marketing practices and consumer engagement strategies.

Beyond the Headlines

The report suggests deeper implications for the fashion and beauty industries, including the need for brands to balance short-term KPIs with long-term brand health. The emphasis on creative risk-taking and strategic pricing highlights ethical considerations in marketing practices, as brands navigate consumer trust and perception. The focus on cross-generational reach also points to cultural shifts in consumer demographics and spending habits, which could influence future marketing strategies and industry trends.