Beauty brands and content creators are bracing for significant changes, particularly with the potential TikTok ban in the United States set for January 19. This looming restriction raises questions about the future of engagement and marketing strategies within the beauty sector. With Instagram already dominating as the primary social media platform for beauty, a notable shift towards Meta- and Google-owned applications is anticipated, reflecting the trajectory seen in India following their TikTok ban in 2020.
To shed light on the impact, consider the media influence values (MIV) of the top 10 beauty brands in the U.S. during the latter half of 2024: a striking 43% of their media impact originated from Instagram, while TikTok accounted for 34%, and YouTube just 16%. Facebook lagged at a mere 1%. This contrast in India showcased a somewhat similar trend, where Instagram constituted 58% of MIV, followed by YouTube with 26% and Facebook at 9%. This alignment signals a need for brands to fortify their presence on platforms other than TikTok, should the ban come to fruition.
Amidst these significant shifts, smaller platforms such as Lemon8, Triller, Kwai, and Likee have emerged, offering alternative venues for short-form video content. These platforms present exciting opportunities for beauty brands and creators eager to adapt to changing consumer behaviors and preferences. The possibility of engaging users through diverse channels could mitigate losses from TikTok’s absence and provide fresh avenues for creativity and connection in beauty marketing.
In parallel, the luxury market is facing its own challenges in 2025, as brands contend with a slow sales period. Various analysts present a mixed outlook: the best-case scenario suggests a 6% increase in global sales of personal luxury goods, while the worst-case could see a decrease of 2%. The consensus points to around a 3% growth year-over-year, influenced heavily by factors such as consumer confidence in China, geopolitical tensions, and tariff implications from the Trump administration.
China remains a linchpin in the luxury market landscape, as the government prioritizes restoring consumer confidence following perceived downturns in personal finances among its citizens. The outlook for the U.S. luxury market suggests optimism, with expectations for a significant resurgence in sales by the end of the second quarter. However, ongoing uncertainties, particularly regarding potential tariffs, prompt a level of caution among brands.
Beauty brands and the luxury sector must remain agile as they navigate these twin dynamics of social media shifts and market fluctuations. The potential TikTok ban could very well reshape content strategies, with Instagram poised to maintain its top position while alternative platforms gain traction. Simultaneously, luxury brands must adapt to economic factors that influence consumer behaviors, ensuring resilience in an ever-changing marketplace.
