Retail’s Untapped Goldmine
Why Male Consumers are Retail’s Sleeping Giant
The retail landscape has been bruised and battered in recent years, with the pandemic causing vendors to shift resources away from innovation and retailers to order conservatively. Amid these struggles, there’s a sleeping giant waiting to be awakened: the male consumer market. The untapped potential of this demographic could serve as a game-changer for retail brands, especially in the Direct-to-Consumer (DTC) space. Store closures disrupted supply chains, and changing consumer preferences have compounded the challenges faced by traditional retail brands. In response, retailers have emphasized inventory discipline and expense controls, seeking to mitigate the risks of a possible downturn. Despite these challenges, some DTC brands have managed to thrive in adversity. For instance, Eyebuydirect has taken a different approach, strategically raising their campaign spend by up to 20 percent in 2022 to prioritize revenue growth over profitability. In doing so, they are banking on long-term growth and brand amplification, even as profitability takes a backseat. As the pandemic has left retailers scrambling to find new ways to engage customers and drive sales in an increasingly competitive environment, DTC companies are taking risks and making bold moves that speak to the growing importance of eCommerce and the rise of DTC brands in a constantly evolving retail landscape. Yet, the entire retail sector, brick and mortar and DTC, continues struggling to keep up with past expectations from a no-interest rate pandemic environment and is seeking growth areas.
The male consumer market represents a largely untapped opportunity for many brands. In the past, DTC companies have found success when focusing on this demographic. Brands have differentiated themselves and capitalized on the lack of targeted offerings for male consumers. Examples of successful DTC brands that have targeted male consumers include Dollar Shave Club and Harry’s. These companies have disrupted the grooming industry by offering high-quality, affordable products tailored to men’s needs. They’ve achieved impressive growth, demonstrating substantial potential in this space. As the opportunity to engage the male consumer market becomes more apparent, retailers and retail brands are noticing and eyeing the luxury men’s space for growth. This market segment represents an increasingly lucrative niche as men’s interest in high-quality, upscale products continue rising.
Acquisitions have become a driving force in penetrating the male consumer market, with major players making strategic moves. L’Oreal’s acquisition of Aesop, a brand known for its large male customer base and robust retail network, is a prime example. Aesop has become a status symbol among high-end restaurants and upper-middle-class homes, making it an attractive addition to L’Oreal’s portfolio. This acquisition elevates L’Oreal’s brand and opens up new opportunities to tap into the male luxury market. Estée Lauder’s acquisition of Tom Ford for $2.3 billion is another example of a major player entering the luxury men’s space. Tom Ford Beauty has been a significant success for Estée Lauder Companies. The acquisition ensures that the brand’s longstanding relationships with Zegna and Marcolin remain in place to maintain fashion ties and brand prescience.
The men’s skincare market was valued at an estimated $13 billion in 2022 and has grown substantially. This surge in demand for men’s skincare products presents a massive opportunity for brands to create and market luxury skincare lines tailored specifically for male customers. The “quiet luxury” trend, characterized by high-end, low-key clothing items, has also gained traction among wealthy male individuals who want to maintain a subtle, understated appearance. This trend highlights the importance of understanding and adapting to the evolving preferences of male consumers.
Capitalizing on the increasing interest in luxury men’s products, DTC brands should focus on developing offerings that cater to this market segment. One of the most significant factors in tapping into the male consumer market, particularly in the luxury segment, is leveraging the power of celebrity influence. A-list celebrities and influencers can drive consumer behavior and create trends, making them invaluable partners for retail brands looking to engage male customers. For instance, the launch of Pharrell Williams’ skincare line, Humanrace, demonstrates the effectiveness of celebrity influence in driving sales. By mobilizing his massive online following on Instagram (14.5 million followers) and TikTok (1.1 million followers, with 7.2 million likes), Pharrell successfully sold out the “Three Minute Facial” routine from Humanrace on the same day it debuted in November 2020. The skincare line, now back in stock, continues to gain momentum and retails for $110.
The male consumer market is flourishing, especially with the emergence of new male celebrity brands that cater to the growing interest in “quiet luxury.” Brands like Good Weird, co-founded by actor, skater, and Calvin Klein ambassador Evan Mock, are pushing the boundaries of men’s grooming and beauty products. From silver tubes of bronzer to under-eye gel, these brands are encouraging men to indulge in self-care and grooming. The following growth in the boldface beauty market, the DTC skincare boom, and the expansion of men’s lifestyle products well beyond shaving lotion and SPF trends have merged and are emboldening famous faces such as Harry Styles (Pleasing), Machine Gun Kelly (UN/DN), Pharrell (Humanrace), Jared Leto (Twentynine Palms), John Legend (Loved01), Idris Elba (S’able Labs), and Brad Pitt (Le Domaine) to launch their celebrity brands in this space.
The male consumer market is ripe with opportunity, yet there is no clear winner or playbook to dominate this growing segment. As masculinity becomes more of a spectrum, brands must be willing to adapt and innovate to capture the interest of male consumers. As the lines in beauty products become increasingly blurred, brands look to embrace this new opportunity to break through. Gen Z, Millennials, and Gen X are all growing interested in brands that challenge traditional norms in the beauty industry. The key to success in the male consumer market is the combination of quality marketing and quality products. L’Oreal’s recent $2.5 billion acquisition of Aesop, favored by male stars like singer Troye Sivan and Bridgerton’s Jonathan Bailey, only reinforces the potential for lucrative opportunities in the personal care space for men.
Ultimately, the future of men’s beauty brands lies in embracing the spectrum of masculinity and creating products catering to diverse consumers. As the market continues to evolve, the retail industry must be agile and responsive to the needs of the growing male consumer base.
The male consumer market is a sleeping giant poised to redefine the retail industry. As the demand for luxury men’s products and services continues to grow, retailers must seize this opportunity to cater to an untapped market. The rise of direct-to-consumer luxury brands and the influx of celebrity-driven beauty and grooming lines are pushing the boundaries of traditional retail, offering new and exciting opportunities for innovation and growth.
Brands that understand and adapt to the shifting landscape of consumer behavior will thrive as men become more comfortable exploring skincare, grooming, and fashion. The key to success in this market is to break down the barriers of conventional norms and offer a diverse range of products that cater to the unique preferences and needs of the modern male consumer. Ultimately, the retail industry must evolve to meet the demands of an increasingly diverse and discerning consumer base. By capitalizing on the male consumer market and the growing interest in “quiet luxury,” retailers can unlock a world of untapped potential, paving the way for a retail renaissance.
So, as we look toward the future of retail, the question remains: who will rise to the occasion and tap into the vast potential of the male consumer market? Retailers who embrace this challenge will undoubtedly reap the rewards as they awaken the overlooked, discerning male consumer and revolutionize the world of luxury shopping.
