Branding approaches transformation in the perfumes and cosmetics retail segment: challenges and prospects

Abstract

Introduction. The perfume and cosmetics market is a highly dynamic sector of the economy with a significant amount of investment by companies in the formation of brand capital. The high saturation of this segment actualizes the need to develop and implement effective marketing approaches to brand promotion. Over the past five years, the market has undergone significant changes due to the COVID-19 pandemic, the worsening geopolitical situation, the acceleration of digitalization and the formation of new consumer demands from generation Z. New challenges associated with the departure of foreign brands, reduced marketing budgets, and high consumer demands for service imperatively require Russian companies to quickly adapt and develop creative strategies. The purpose of the work is to identify the essential factors of successful branding in the perfume and cosmetics market in modern economic realities in general and to analyze the positive practices of the development and promotion of the Golden Apple brand in particular.

Materials and methods. The research is based on an integrated approach that includes a combination of quantitative and qualitative data analysis methods from major information analysis and research companies (McKinsey, Nielsen, Businessstat, INFOLine, Brandlab) and official Russian statistical sources. The methodology of qualitative analysis is based on the content analysis of thematically relevant publications, expert interviews with industry experts. In the course of the comparative analysis, the content of the web resources of well-known brands of the perfume and cosmetics industry was analyzed, effective branding practices were summarized, and materials from the author's observations were used. The experience of the successful adaptive strategy of the Golden Apple brand is presented in the study as an illustrative case of domestic business.

Results. The paper presents current provisions in terms of clarifying the essence of brand management, taking into account the management of attributes that make up identity. The modern brand attributes are characterized: legend, manifesto, visual identifiers, USP. Among the new approaches to brand promotion, digital tools are being considered, including streams, video consultations, and video instructions on products. Interaction with opinion leaders and influencers becomes an important element of branding. Creative approaches to branding are in demand, one of the tools is storytelling, which is of particular interest to the cosmetics and perfumery segment.

Discussion. The experience of managing the Golden Apple brand allows us to conclude that it is necessary to take into account modern market requirements and audience requests. The brand actively uses digital channels of interaction with the audience, develops brand media, implements gamification elements in the mobile application, and creates communities around the brand. Future elements of the study may include the actualization of ESG strategy issues, such as sustainable consumption or digital detox.