
One of my key predictions for 2022 is that big brands will continue to focus their investments on tech. They’ll partner with tech firms to increase the functionality of their offerings, for both physical and digital products and services. And M&A activity over the next 12 months is likely to be heavily weighted towards the acquisition of tech startups, as beauty incumbents compete to convert sales through hyper-personalized, hyper-convenient product lines and distribution channels.
This poses an obvious problem for small beauty brands. As consumers become accustomed to tech-driven effectiveness (of products) and ease (of delivery), small brands with small budgets are struggling to stay competitive. After all, how could a living room beauty upstart offer the same service as a retail giant with a mega budget and tech developers on tap?