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Multicultural moment

Mass market retailers spotlight brands for America’s diverse population.
6/18/2024

America is getting more diverse, and the beauty industry is listening.

A cadre of famous people of color recently introduced their own brands accompanied by splashy launches. There’s a pipeline of new items from BIPOC founders curated with ingredients to address the needs of textured tresses. And retailers are looking for better ways to present multicultural items on shelves.

There is much at stake in reaching an emerging audience that over-indexes spending on beauty. The 2020 U.S. Census reported a 276% increase in people identifying as multi-race since 2010.

Black consumers spent $9.4 billion on beauty products in 2023, up $1.3 billion, according to NielsenIQ. Spending on beauty products by Black consumers comprises 12.5% of total U.S. dollars.

Statista reports U.S. Hispanics spend an average of more than $840 on beauty and personal care per year and that number is on a growth trajectory. Asian Americans represent spending
power that’s expected to top $1.6 trillion in 2024, according to NIQ.

Multicultural shoppers are willing to pay more for ingredients and brands they feel produce results. According to NIQ, dollars spent on multicultural personal care rose 5.8%, while units were down 1.1%, suggesting customers are trading up in price, especially for trusted ingredients.

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“Everybody is embracing their beautiful natural hair,” said Janell Stephens, founder of Camille Rose Naturals. She added that sales of products for textured hair are driving overall category growth. Her focus on ingredient stories—the food- grade ingredients such as rosemary, macadamia nuts and almond milk that she uses—helped push the brand from 10th to sixth place in sales ranking in less than a year, based on NIQ data.

Walmart’s New Unified Set

Last month, Walmart revealed one of the biggest developments in merchandising hair care in decades. Instead of domiciling brands once classified as “ethnic” in separate areas from general market brands, Walmart presented a “unified” set.

[Read more: Hydration needs on the rise for curly, textured tresses]

Walmart did not immediately respond to requests for specifics, but brands that are familiar with the new approach said they’ve already seen a boost in tests. Based on success, the chain is reported to have moved up the rollout timeframe to complete most stores by the end of 2024.

Consumers like the idea, too. “That is going to be a game changer for me,” said Brittany Rolland, who never knew where to find products for her mixed-race daughter’s curly locks. “My go-to products for my straight hair don’t work for her but I’ve discovered all these brands I never knew; with ingredients we love.”

The unified set exposes shoppers to more brands, many from BIPOC founders. Many of the creators spent years experimenting with natural ingredients to find what works best. Founders said that getting more shoppers helps these nascent brands get on even footing with industry giants.

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The centralized approach also mirrors retailers’ efforts to streamline the shopping experience. The dizzying array of SKUs can be confusing at a time when shoppers have limited time to survey the selection.

“I think everyone is simplifying the journey,” said Psyche Terry, cofounder of Urban Hydration, a brand that has had success in reaching a wide audience. “Without all of the searching, hair is hair, skin is skin.”

Multicultural Celebs Embrace Beauty

Some of the biggest stars in sports and Hollywood are getting into beauty. Dwayne “The Rock” Johnson’s Papatui is off to a powerful start at Target and online, those familiar with the brand said. The name Papatui pays homage to his heritage.

“My Samoan grandfather, the High Chief Peter Maivia, was the first man who taught me what men’s care was all about,” said Johnson during his launch tour. His mother is Samoan, and his dad is Black.

“People have asked me about my skincare for years, and people know that I’m a big advocate for all men to take care of themselves, inside and out,” Johnson said in a release. “Men’s wellness will always be very important to me, and I’ve been lucky enough to have access to some of the best resources and minds when developing Papatui.” Those familiar with the brand’s face, body, hair and tattoo care products said Johnson is very involved in creating and supporting the brand.

LeBron James is in the grooming game, too. Walmart just rolled out The Shop, a line of men’s grooming skin, hair and beard items from The SpringHill Company, founded by James and business partner Maverick Carter. “Walmart is committed to broadening its product range and introducing new brands to captivate customers,” Creighton Kiper, vice president of merchandising and beauty at Walmart U.S., said.

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Beyoncé Knowles-Carter recently announced Cécred, a haircare brand priced from $30 to $52. Her resume supports her haircare expertise, as she has worked in her mom’s salon and has personal experience with leading stylists. She joins Tracee Ellis-Ross and Taraji P. Henson as celebrities with lineups for textured hair.

Serena Williams is the latest celebrity to try her hand at cosmetics. Her brand, Wyn, is a collection she said she’s been working on for six years. The range includes ten products: tubing mascara, soft-matte concealer and hybrid lip and cheek color. Wyn is sold on its own website and at Ulta Beauty.

[Read more: Multicultural mindset: Retailers, suppliers grow their focus on diverse needs]

Carol’s Daughter recently signed on another tennis star, Coco Gauff, to represent the brand. “We like the idea of seamless partnerships like Coco and partnering with movies like The Little Mermaid and The Color Purple,” said Nathalie Gerschtein, president of L’Oréal Consumer Products Division.

What’s New on Shelves?

There is a lot of newness greeting shoppers on the shelves. Keeping ingredients at the forefront, Camille Rose has a new collection of products for braids. The lineup includes the Mint Condition Braid and Scalp Spray, Style and Set Foam and Nourishing Braiding Gel.

Target recently added Dermasuri, an exfoliating mitt inspired by its founders’ Middle Eastern and Japanese heritage. The brand, according to cofounder Melody Akhavan, fits Target’s efforts to broaden its assortment of brands to meet diverse customer needs. Target also just added Black-owned CurlyChic Haircare, which includes items for kids.

Urban Hydration just introduced a 10-oz. Aloe Vera, an addition to its skincare range that harnesses the power of aloe vera with micellar technology. Sky Organics has five new hair care products at Walmart that offer tailored solutions for textured tresses.

“At Sky Organics, we are committed to making certified organic beauty accessible to everyone and educating consumers that living a natural, sustainable lifestyle can be easy with the right clean essentials,” said co-founder and chief sustainability officer Dean Neiger.

Support for Emerging Brands

Retailers and brands are working to level the playing field for BIPOC founders. According to Crunchbase, Black-founded startups received less than 0.5% of the $140.4 billion in venture funding all U.S.-based startups received last year.

Ulta Beauty’s MUSE accelerator program has helped brands learn more about navigating the retail landscape. Pound Cake, a Black-founded lipstick brand, graduated from the program and launched last year with its Cake Batter lips shades for all skin tones.

Kazmaleje was a Shea Moisture’s Next Black Millionaires Fund awardee and secured Target distribution. The brand features a comb designed for textured hair.

Target and Walmart also have their own accelerators to help upstart BIPOC-founded brands get the tools they need to flourish.

Kiss Colors & Care is investing in future trailblazers. The brand recently announced its 2024 Next Generation Leaders Scholarship program, which will award up to $15,000 to deserving students to help with post-secondary education.

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