Success is increasingly tied to navigating a fragmented market in today’s beauty industry. Traditional business models are being challenged by multichannel strategies, requiring companies to rethink how they connect with customers. Francesco De Michele, an Italian consultant with years of experience in the hair and beauty sector, is at the forefront of this transformation. In this exclusive interview, he explains the challenges and opportunities of multichannel strategies and how he is helping brands and companies adapt to this evolving landscape.
How has distribution evolved in the Italian beauty market?
Distribution has undergone a massive evolution in Italy, like in other countries. Many companies previously relied on direct agents, but few maintain this model today. For example, multinational companies that once employed over 120 agents per brand now manage multiple brands with a reduced network of approximately 70-80 agents. This has created space for a system of sub-distributors who represent various brands but often lack a deep understanding of the mission and identity of the companies they represent.
What role does retail play in reshaping the Italian beauty industry?
The retail market is becoming increasingly important, with 9,000 perfumeries in Italy, including chains like Douglas, Sephora, Pinalli, and Naïma, which continue to grow rapidly. Pharmacies and herbal stores are also evolving, offering aesthetic treatments and demonstrating that the line between traditional and innovative channels is becoming increasingly blurred. However, it is essential to distinguish between the mass retail channel and department stores. Stores like La Rinascente and Coin offer structured, high-quality shopping experiences, emphasising the “customer experience” and customer loyalty.
This transformation is also evident in salons, where a new generation of younger, digitally savvy hairdressers is leveraging social media to promote their services and build direct relationships with clients, challenging outdated stereotypes about the sector’s lack of sales aptitude. In this context, companies must learn to interpret these new dynamics, moving beyond the traditional filter of agents, who often fail to provide an updated and accurate picture of the market.
Why are multichannel strategies so crucial in the beauty industry today?
The beauty market has become incredibly fragmented. A brand can no longer rely on a single sales channel like it did in the past. Today, the same shampoo can be sold in salons, online marketplaces, high-end retailers, or even directly to consumers. This diversity creates immense opportunity but also significant complexity.
Multichannel strategies are essential because they allow brands to meet consumers wherever they are. Whether it’s a professional looking for premium products for their salon or a customer buying from an online store, each channel needs to complement the others. It’s about building a seamless and coherent presence while leveraging each platform’s strengths.
What are the biggest challenges companies face when adopting multichannel strategies?
One of the main challenges is the fear of change. Many companies, particularly in Italy, have operated successfully with traditional B2B models for decades. They’re hesitant to experiment with direct-to-consumer or e-commerce channels because it feels like uncharted territory.
Another issue is internal alignment. A multichannel strategy requires coordination across marketing, logistics, sales, and more departments. For example, if a brand expands into retail, it has to ensure its products are presented consistently, inventory is managed effectively, and pricing is aligned across all channels. Without this harmony, the strategy can backfire.
Lastly, companies often underestimate the initial investment needed for digitalisation. Entering platforms like Amazon isn’t just about listing your products; it requires expertise, a robust marketing plan, and a team that understands the nuances of online retail.
What opportunities does multichannel provide for beauty brands?
Multichannel strategies allow brands to expand their reach and diversify their revenue streams. For instance, a professional-grade product once only available in salons can now be found in luxury retail stores or online platforms. This doesn’t just increase sales—it builds brand awareness and credibility.
Another opportunity lies in data. When brands operate across multiple channels, they gain insights into customer behaviour. Who is buying the product? What are they looking for? This data can drive smarter decisions, from product development to targeted marketing campaigns.
For salons and stylists, multichannel also creates opportunities. By embracing retail within their businesses, they can offer clients a curated selection of products, building trust and boosting their income.
How do you help companies navigate this transition?
My approach is tailored to each client because no two companies are alike. The first step is understanding their unique needs and goals. Are they looking to expand into new markets? Do they want to grow their online presence? Once we identify these objectives, we create a roadmap.
With some brands, I focus on creating a cohesive strategy that spans professional salons, retail, and online platforms. This includes everything from inventory management to ensuring a consistent customer experience across all touchpoints.
Another aspect of my work involves educating clients. Many companies struggle to see the value of multichannel strategies because they’ve been so deeply rooted in one way of doing business. By showing them real-world examples and demonstrating ROI, I help them embrace the change.
How do hairdressers fit into the multichannel scenario?
In recent years, the salon market in Italy has experienced significant growth, increasing from around 90,000 to nearly 100,000 establishments, despite changes in their structure. Today, many salons consist of a single owner and, at most, an apprentice, while large salons with numerous employees remain an exception.
Hairdressers are at the heart of the beauty industry. For decades, they’ve been the gatekeepers of professional-grade products, trusted by their clients to provide expert recommendations. However, as multichannel strategies evolve, many hairdressers feel their role is being diminished.
What are their fears, and why might this shift be an opportunity for them?
Hairdressers fear losing exclusivity when products they use in salons become available online or in retail stores, undermining their unique role and profitability. However, this shift is an opportunity. Hairdressers have something that no retail channel can replicate—trust and personal connection.
A stylist isn’t just selling a product; they’re selling their expertise. They see their clients’ hair, understand their specific needs, and can recommend products in a way that feels tailored and genuine. Moreover, by aligning with brands that offer strong multichannel support, hairdressers can position themselves as trusted authorities in an increasingly crowded market. A well-trained stylist who can explain why a product works and how it fits into a client’s routine will always have an edge over a generic sales pitch at a retail store.For them, embracing this shift can significantly boost their revenue. By building a robust retail corner in their salons, they can offer clients curated, high-quality products that align with their services. This not only increases their income but also deepens the client relationship.
What advice would you give to companies hesitant about adopting multichannel strategies?
My advice is simple: don’t wait to reflect on these changes seriously.
- Read up: Seriously consider the impact of emerging technologies like digital assistants, AI, and avatars. The market is dynamic, and inaction will leave your company at a significant disadvantage.
- Start small and iterate: Begin with a pilot programme on a single new channel. Collect data, analyse the results, and refine your approach based on the learnings.
- Seek professional guidance: Consider hiring a consultant or building an internal team with expertise in multichannel strategies to navigate this evolving landscape successfully.
- Invest in building relationships: Remember that multichannel strategies are not solely about sales. Every interaction, regardless of the channel, presents an opportunity to connect with your audience and cultivate long-term loyalty.
- Embrace change and adapt: Clinging to outdated approaches in a rapidly evolving digital world is detrimental. Embrace change, be decisive, and invest in the necessary resources to thrive in a multichannel environment.
