The beauty industry is dynamic and ever-evolving, with brands selling their products both through their own Direct-to-Consumer (D2C) websites and via major retailers like Look Fantastic, Space NK, Cult Beauty, Feel Unique, Boots, M&S, John Lewis, Selfridges, and Harrods.
However, many beauty brands face a common challenge: how to increase direct sales while maintaining strong relationships with retailers and etailers.
As a leading beauty marketing agency, we specialise in helping brands navigate this delicate balance and maximise their D2C potential. Here’s what you need to know:
The pricing challenge: Retailers have the upper hand
When partnering with retailers, brands generally set a Recommended Retail Price (RRP). However, retailers aren’t legally bound to stick to that price and often use promotions, discounts, and loyalty programmes to entice consumers.
Google Shopping further heightens competition by displaying all prices up front—giving retailers who can afford to undercut brands a clear advantage.
Common Brand Dilemmas
Can brands simply undercut retailers?
Not really. Retailers often operate on lower margins and rely on deep discounts to attract customers who’ll then buy additional items.
Preserving retailer relationships is also crucial for securing large wholesale orders.
Should brands offer exclusives?
Yes, but it may also be more lucrative for you to offer exclusives to key retail partners. Strong retailer relationships can result in bigger orders and better platform positioning.
Winning Strategies for Beauty Brands
Rather than competing on price, brands should emphasise their unique strengths to drive direct sales:
Become the Ultimate Authority on Your Products
Your brand website must be a treasure trove of product knowledge, including detailed descriptions, ingredient insights, usage tips, and expert advice. Some client examples of this – Dr. Sam’s does this brilliantly by offering extensive educational content on their site and we worked with Wayne Goss to integrate videos on every product page – reinforcing his expertise.
Curate and Bundle Products
Glossier bundles complementary products at a small discount, both boosting Average Order Value (AOV) and showcasing how well items work together – something many retail partners overlook.
Incentivise Direct Purchases
One powerful approach is offering added value with every order. Charlotte Tilbury, for instance, frequently includes deluxe samples or mini products for customers who spend above a certain threshold – this small gesture pushes shoppers to increase their basket size. Meanwhile, brands like Cult Beauty focus on simplifying the purchase experience with free shipping above a set spend, boosting overall conversion rates.
Another tactic is building genuine loyalty through membership or rewards. Elemis’s ‘Skin Wellness Club’ grants points for every purchase, redeemable for future discounts or exclusive items. MAC Cosmetics leans on early access and VIP perks to keep customers feeling valued, while Charlotte Tilbury’s AI-driven ‘Magic Beauty Stars’ quiz personalises recommendations, making every shopper feel seen and understood. Beauty Pie takes a subscription-based route, offering high-end formulations at a reduced cost for members, encouraging long-term loyalty.
Brands should leverage Affiliate Marketing to compete with retailers. Many beauty brands overlook the power of affiliate marketing in driving direct sales. Publications and influencers frequently feature beauty products in roundups like “Best Lipsticks 2025,” but the decision of which product to link to often comes down to commission rates. Retailers such as Boots, Look Fantastic, and Selfridges offer competitive commissions to incentivise publications to feature their product links over the brand’s direct website. For example, if Boots is offering a 5% commission and your brand offers 6% through an affiliate platform, the publication is more likely to link directly to your site, maximising your visibility in high-traffic beauty guides. Monitoring and matching these commissions ensures your D2C channel remains competitive and doesn’t lose out on valuable exposure. Brands should actively track stockist commission rates and adjust their affiliate offerings accordingly to remain the preferred choice for editorial placements.
Finally, consider harnessing the power of word-of-mouth and exclusivity. Glossier provides store credit for successful referrals, turning satisfied customers into advocates. Fenty Beauty releases limited-edition, online-only collections that whip up excitement and urgency. Incorporating real-life user experiences and testimonials, like The Ordinary and Summer Fridays do with before and after photos, this further strengthens trust and authenticity.
Accept and Adapt to the Retail Landscape
Modern consumers are less brand-loyal, so aim for realistic goals aligned with market behaviour. An old client of ours, Arkive Headcare, for instance, recognises that D2C will remain a small slice of its revenue. Instead of prioritising direct sales alone, they invest in upper-funnel campaigns to bolster retail sales and even funnel some of their ad spend directly to retailer sites.
The Halo Effect
Even if consumers don’t buy from your website, heightened brand awareness fuels in-store sales. If someone sees your campaign online, then walks into Boots later, they’re much more likely to choose your products – a gain that’s hard to track but crucial in the long run.
How to Build Brand Awareness
- Influencer & UGC Marketing: Work with influencers who resonate with your brand and encourage user-generated content.
- SEO-Optimised Content: Publish high quality blogs, video tutorials, and product guides that rank well and educate your audience.
- Social Media Engagement: Take a leaf out of Rare Beauty’s book by using Instagram, TikTok, and YouTube to start conversations and cultivate a community and loyal following.
- PR & Editorial Placements: Take digital PR seriously and get featured in esteemed outlets like Vogue, Elle, and Refinery29 to enhance credibility.
- Paid Social & Display Ads: Targeted advertising on Meta, TikTok, and Pinterest keeps your brand in front of potential buyers.
- Brand Collaborations: Exclusive collaborations or limited editions- like those from Fenty Beauty to generate a buzz.
- Retailer Support Campaigns: Co-branded activations strengthen retailer relationships and secure premium shelf space.
We’re Foundation, the beauty marketing specialists
We specialise in understanding the intricacies of the beauty world and crafting digital marketing strategies that balance brand goals with retailer priorities. Whether you aim to refine your direct sales approach, stand out as a top Charlotte Tilbury stockist, or enhance partnerships with major retailers, we can help. Our proven expertise in beauty marketing ensures your brand will succeed in a crowded market.
Need a tailored strategy for your beauty brand? Get in touch today.
