Huda Beauty Marketing Strategy: 8 Solutions for e-Commerce

By Cecilia Luna

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eCommerce | Luxury | Social Media

Huda beauty marketing strategies digital strategy luxury

Huda Beauty Marketing Strategy, 8 Challenges & Solutions when Expanding into a Global Brand

Huda Beauty Marketing Strategy

1. How to turn a Product into a Global Brand

Struggling to scale and compete with established brands in a saturated market?

Picture this: a makeup artist and beauty blogger in 2010 launched her first product in 2013 – false eyelashes. Just five years later, Huda Beauty had become a global cosmetics brand valued at over $1 billion, competing with industry giants like L’Oréal and Estée Lauder.

But how? Well, this article will analyze Huda Beauty’s incredible ascent, exploring how a niche product evolved into a global brand, what strategies did it use to enter a mature market, and all the drama when expanding to international markets–competitors, controversies, and social media… (nothing is interesting without a little drama!)

product development strategies, market expansion tactics, social media expertise, and crisis management techniques

2. The Identification of a Gap in the Market

In 2010, the $382.3 billion global beauty market was dominated by Western brands. Yet, with her unique US-Middle Eastern background, spotted an opportunity others missed (yes, a gap in the market): the specific beauty needs of Middle Eastern women.

While working as a makeup artist in Dubai, she identified a need for high-quality false eyelashes tailored to Middle Eastern preferences for dramatic eye makeup.

Kattan was perfectly positioned to tap into this bubbling market and launched her high-quality false eyelash product in Sephora and within weeks, these lashes were adorning the eyes of celebrities like Kim Kardashian, catapulting Huda Beauty into the spotlight.

According to a report by Euromonitor International, the Middle East and Africa’s beauty and personal care market was growing faster than the global average, with a 4.8% annual growth rate.

Huda Beauty Marketing Strategy

Key Insight that Generated Growth

Kattan’s success came from addressing an underserved market segment, combining local knowledge with professional expertise. This aligns with Seth Godin’s concept of “finding your tribe” –identifying and serving a specific, passionate audience.

Lashes, the beauty product that started a global brand, and even a hit life-time can be extended with collaborations

3. How to Compete in the Premium and Luxury Cosmetic Market?

Let’s talk about the fiercely competitive landscape of the global cosmetics market in 2017.

L’Oréal, the industry leader, had been around for over a century and boasted annual sales of €22.98 billion, offering various products to serve many segments.
While Fenty Beauty was making waves with its inclusive foundation range (40-shades to be exact), and
Charlotte Tilbury, another British makeup artist and influencer-turned-entrepreneur, was capturing the luxury market.

So, how a new and small brand focused on Middle Eastern beauty niche could expand globally?

Well, the short answer is using a digital-first approach and influencer-driven marketing centring on Social Media.

But why did this approach work? In 2017, traditional brands’ marketing strategies were still heavily focused on print and TV advertising. So Kattan leveraged her Beauty WordPress blog and small YouTube channel created in 2010 and focused on growing her social media presence.

Key Huda Beauty Marketing Strategy

Huda Beauty’s social media strategy aimed for engagement. From using her platform to showcase products, share tutorials, behind-the-scenes glimpses, and engage with her audience, she built a community, not just a customer base.

Strategy Results: Digital-first, influencer-driven marketing via social media

Instagram following grew from 60,000 (2012) to 47 million (present)
Named #1 beauty influencer on Instagram (2017), one of the top beauty influencers
Posts valued at $18,000 each (according to Hopper HQ’s 2017 Instagram Rich List)

This approach allowed Huda Beauty to compete with established brands despite having a fraction of their marketing budget.

Using influencer marketing strategy meant that as a young brand she would address her target market first and save a lot of costs compared to a traditional brand.

4. Navigating the Global Beauty Industry & Localization Challenges

By 2018, Huda Beauty had expanded beyond the Middle East, facing the challenge of appealing to a global audience while maintaining its unique identity.

Expanding globally isn’t just about shipping products to new countries. It’s about understanding and adapting to diverse beauty standards, navigating complex regulations, and managing cultural sensitivities. How did Huda Beauty tackle these challenges?

Global Growth Tactics

Multilingual Support: Huda Beauty’s website and social media content are available in multiple languages, catering to customers worldwide.
Culturally Sensitive Marketing: The brand adapts its marketing messages and imagery to resonate with different cultural contexts.
Partnerships with International Retailers: Collaborations with global beauty retailers like Sephora expanded Huda Beauty’s reach.
Continuous Product Innovation: The brand regularly launches new products to meet diverse market needs, such as expanding its foundation range to cater to a wider variety of skin tones.

According to a 2019 report by McKinsey & Company, the global beauty industry was projected to grow to $716 billion by 2025. Huda Beauty’s expansion strategies positioned it to capture a significant share of this growing market.

5. Navigating Cultural Sensitivities and Controversies

With expansion came great responsibility, and at the time, a significant shift in the beauty industry towards inclusivity and diversity.

In 2018, Huda Beauty was criticized for its limited foundation shade range targeting few men and darker skin types. This controversy erupted at a time when inclusivity was becoming a central issue in the beauty industry.

Added to the challenges, when expanding into the US market, Huda Beauty faced stiff competition from established players like MAC and newcomers like Fenty Beauty with its 40-shade foundation range. The brand responded by expanding its foundation range, avoiding sales loss to competition and directly addressing the growing demand for inclusive beauty products.

How did Huda Beauty turn this potential crisis into an opportunity?

Crisis Management Approach

Swift Acknowledgment: The brand quickly recognized the validity of the criticism.
Rapid Action: Huda Beauty expanded its foundation shade range from 30 to 39 colours within months.
Transparent Communication from the founder: Kattan personally addressed the issue on social media, explaining the brand’s commitment to inclusivity.

Result: This proactive approach not only quelled the controversy but also led to a 20% increase in sales following the resolution.

According to a 2019 study by Sprout Social, 70% of consumers feel more connected to brands with CEOs who are active on social media, highlighting the effectiveness of Kattan’s personal involvement in crisis management.

Huda Beauty Crisis Management Strategy: respond to criticism in Social Media and avoid sales going to your competition

6. Regulatory Challenges in the Beauty Industry

Have you heard that one product could be legal and compliant in one country and banned in another?

That’s the beauty of complexity and significant regulatory challenges of the beauty industry. When it comes to product development, different countries have varying standards for ingredient safety, labelling requirements, and product claims.

For instance, when Huda Beauty launched its “Neon Obsessions” eyeshadow palettes, it faced a unique challenge. While neon pigments are allowed in cosmetics in many countries, they aren’t approved by the FDA for use around the eyes in the US market.

Regulatory agility has been crucial to Huda Beauty’s global success, allowing the brand to compete effectively with industry giants like L’Oréal and Estée Lauder, who have decades of international experience.

Regulatory Adaptation Strategies:

Thorough Market Research: Before entering a new market, Huda Beauty conducts extensive research on local regulations and consumer preferences.
Collaboration with Local Experts: The brand works with regulatory experts in different regions to ensure compliance.
Flexible Production Processes: Huda Beauty has developed adaptable manufacturing processes to accommodate different regulatory requirements.

According to a 2020 report by Cosmetics Europe, the EU cosmetics market, worth €79.8 billion, has some of the strictest regulations globally.

Huda Beauty Neon Obsessions Pressed Pigment Palette was the source of controversy for its pigments

7. The Impact of Global Expansion on Brand Performance

Huda Beauty’s global expansion has significantly impacted its financial performance and brand reputation. By 2018, just five years after launching its first product, the company achieved a $1.2 billion valuation.

Key Performance Indicators

Revenue Growth: Huda Beauty’s annual revenue is estimated at $250 million, according to a 2019 Forbes report.
Market Share: The brand captured approximately 7% of the color cosmetics market by 2019, competing effectively with established industry giants.
Product Expansion: From a single lash product in 2013, Huda Beauty now offers over 140 products across multiple categories.

For comparison, Charlotte Tilbury, was valued at over $1 billion when a majority stake was acquired by Puig (a Spanish fashion and fragrance company) in 2020. This demonstrates the significant value that can be created by beauty brands that successfully leverage digital platforms and influencer marketing.

8. Huda Beauty Marketing Strategy Journey

Huda Beauty’s journey offers valuable insights for businesses across industries:

Identify and Address Underserved Market Segments: Huda Beauty’s initial success came from recognizing and filling a gap in the Middle Eastern beauty market.
Leverage Digital Platforms for Cost-Effective Growth: The brand’s strategic use of social media allowed it to build a global following without massive advertising budgets.
Adapt Products and Marketing Strategies for Different Cultures: Huda Beauty’s success in diverse markets stems from its willingness to tailor products and messages to local preferences.
Respond Quickly and Transparently to Controversies: The brand’s handling of the foundation shade controversy demonstrates the power of swift, honest communication in crisis management.
Navigate Regulatory Challenges with Flexibility and Local Expertise: Huda Beauty’s ability to adapt its products to meet varying international standards has been crucial to its global expansion.
Balance Cultural Authenticity with Global Appeal: While expanding globally, Huda Beauty has maintained its connection to its Middle Eastern roots, creating a unique brand identity.

For 2024, the global beauty market is projected to reach $758.4 billion, according to a report by Allied Market Research. Brands that can navigate cultural sensitivities, regulatory challenges, and changing consumer preferences will be best positioned to capture a share of this growing market.

Next Steps for an Effective Marketing Strategy

From a simple product like the lash line to a global beauty company, Huda Beauty’s story demonstrates the power of understanding your market, finding your niche, and knowing how to compete in a seemingly saturated and mature market–with a digital strategy, as well as adapting to global challenges with agility and authenticity.

Every industry has its own Huda Beauty waiting to emerge. Could your brand be next? With the right approach, anything is possible.

If you know what to do, but don’t know where to start, let’s talk about how ALCE Labs can help you in your journey to success… So, what’s your next move? The world is watching, and your audience is waiting.