As the beauty industry evolves and consumer demands shift, it is becoming increasingly important for skincare brands to adapt and evolve. Rebranding skincare companies keeps them relevant and attracts new customers. This blog post explores the fascinating world of rebranding and the costs of reinventing a skincare business. It will help startups and established brands understand brand growth’s financial implications.
Let’s examine how rebranding costs affect your skincare business:
The first step in determining the cost of a rebranding effort is to assess its scope. A complete skincare brand overhaul is more expensive than simply refreshing the logo or redesigning the packaging. Rebranding may also involve updating your website, social media, and marketing materials and creating a new brand identity, messaging, and visuals. Larger rebrands cost more.
Moreover, rebranding costs also depend on your skincare company’s size. Rebranding a small, boutique skincare brand with a limited product range may be cheaper because fewer resources are needed. Larger skincare brands with multiple product lines, a large customer base, and a strong online presence may need a larger budget to rebrand smoothly.
Finally, your skincare business’s rebranding project’s goals and needs will affect costs. Targeting a new demographic may require market research, customer analysis, and targeted marketing. To attract existing customers, you may need to refine your brand story, update your visuals, and improve the customer experience.
Hence, rebranding can help skincare brands differentiate themselves in crowded markets, leading to increased sales, loyalty, and recognition.
Aventive Studio is a full-service branding agency that helps health & wellness businesses sell more products. We can update your visual branding, develop a rebranding strategy that positions your business for its next level, and more.
Learn about our branding & design services here.
A rebranding effort could involve the following:
1. Revamping Your Brand: Changing Your Business Name
Rebranding involves changing the business name, often the first thing customers see. This choice can significantly affect your brand’s image. Brainstorming, researching, legal considerations, and naming can take two months. At Aventive Studio we rebrand skincare businesses all the time!
The European Journal of Marketing found that simple, easy-to-pronounce names increased stock prices by 33% compared to complex names. Glossier, a skincare brand, chose a name that resonates with its target audience, giving it an edge in the competitive beauty industry.
Hence, it’s crucial that your skincare business’s new name matches your brand’s personality, values, and target market, laying the groundwork for the rest of your rebranding.
2. Developing A Winning Brand Strategy
Defining your long-term brand strategy is crucial in establishing your skincare business’s unique selling points and identity, which sets it apart from competitors. This process typically takes about a month to complete.
Transparency, simplicity, and affordability have helped The Ordinary, a skincare brand, succeed. Similarly, you can guide your business’s growth and ensure consistency in rebranding by creating a brand strategy.
So, focus on your core values, target audience, and competitive advantage when refining your brand strategy to help your skincare business stand out in the crowded market.
3. Crafting Your Visual Identity
Your skincare business’s logo, colors, and fonts convey its personality and leave a lasting impression on customers. Loyola University Maryland research indicates that color can increase brand recognition by up to 80%. An excellent example of this is Drunk Elephant, whose unique logo and bright, playful colors distinguish them from other brands.
Hence, reevaluating your visual identity helps you align your brand’s aesthetics with its changing goals and values during rebranding. Colors, fonts, and imagery influence consumer perceptions and brand loyalty, so when refreshing your visual identity, consider their emotional and psychological effects. A two-month collaborative process between designers and decision-makers produces a potent branding strategy for sustained success in your skincare business.
4. Transforming Your Product Packaging
Your skincare products’ labels and packaging make a strong first impression on potential customers. The Paper and Packaging Board found that 72% of shoppers are influenced by packaging design. Hence, rebranding lets you redesign labels and packaging to improve customer experience, product appeal, and brand identity.
Aesop, a minimalist, natural skincare brand, has mastered this concept with simple, sophisticated packaging. Sustainability, materials, and functionality can affect consumer perception and brand loyalty when redesigning labels and packaging.
Lastly, depending on complexity, designing and producing new skincare product labels and packaging can take two to four months. This includes designing and printing new labels and packaging and meeting legal requirements.
5. Effective Advertising For Skincare Brands
Rebranding your marketing materials takes about a month. Updating your marketing materials typically includes items such as brochures, business cards, point-of-sale displays, and promotions. According to a FedEx Office survey, 76% of consumers link a company’s marketing materials to the quality of its products and services.
Thus, creating compelling and visually consistent marketing materials that effectively communicate your brand’s values and benefits requires time and resources. For instance, Herbivore Botanicals’ minimalist, clean design and natural imagery emphasize their commitment to pure, plant-based ingredients.
6. Website And Social Media Presence
In today’s market, having a tangible online presence is essential for your skincare brand. Stanford University found that 75% of consumers base company credibility on website design. Hence, rebranding allows you to update your website and social media profiles to match your new brand identity and strategy.
Tatcha, an excellent example of a skincare brand, boasts a captivating website and engaging social media content that highlights its Japanese heritage and luxurious products. Focus on user experience, visually cohesive design, and relevant content when updating your website and social media profiles.
In addition, creating a new skincare business website can take two to five months. This involves creating a new site, migrating content, and optimizing it for search engines.
Moreover, rebranding your social media takes about a month. This involves creating new post templates, updating your bio and profile pictures, and maintaining consistency across social media platforms.
7. Product Offerings And Formulations
As part of the rebranding process, it may be necessary to reassess your skincare business’s products and formulations. Hence, businesses must innovate and meet consumer needs to stay ahead in the beauty industry.
Consumer interest in natural and eco-friendly products is driving the global organic skincare market, which Grand View Research estimates will reach $25.11 billion by 2025. Youth To The People has successfully capitalized on this trend with its plant-based, sustainable skincare line.
Lastly, to align with your new brand identity and current market trends, it may be necessary to rebrand your product lineup. This could include discontinuing underperforming products, introducing new formulations, or improving existing ones, to meet consumer demands and enhance your brand reputation.
8. Creating A Memorable Customer Experience
Rebranding your skincare company lets you assess and improve customer service. According to PwC, 73% of consumers say customer experience is important when making purchases, and 65% say it’s more important than advertising. For e.g., Curology has differentiated itself by offering personalized skincare solutions and seamless customer support.
Moreover, rebranding involves improving customer touchpoints from discovery to post-purchase. This may involve improving customer service, online and in-store shopping, or a loyalty program to reward your most loyal customers.
9. Public Relations And Launch Strategy
Rebranding requires a well-planned PR and launch strategy. This ensures your skin care business effectively communicates its new brand identity to the target audience and generates excitement about the changes.
According to the PRSA, 69% of marketing and communications professionals think PR helps their company’s finances. For e.g., DECIEM successfully rebranded The Ordinary Line through social media, influencer partnerships, and strategic PR campaigns.
So, to promote your rebranded skincare business and increase consumer engagement, create a comprehensive PR and launch strategy that includes press releases, media outreach, influencer collaborations, and targeted marketing campaigns.
Rebranding Budget Guidelines Based On Yearly Revenue
|Yearly Revenue Range||Suggested Rebranding Budget|
|Under $500k||$20k – $40k|
|$500k – $1m||$30k – $60k|
|$1m – $5m||$120k – $240k|
|$5m+||$200k – $400k|
The table above estimates rebranding budgets for various annual revenue levels. Rebranding costs 4-8% of annual revenue, but each skincare company’s needs vary.
So, for small businesses and startups with limited resources, a simple rebranding may cost less than 4% of revenue. In this situation, companies must prioritize the rebranding process.
On the other hand, larger skincare companies may spend more than 8% of revenue on rebranding. Companies with a wider product range, more customers, and an online presence pay more to rebrand. These companies must carefully assess their rebranding needs and allocate resources.
In summary, skincare companies considering rebranding can use the table data to explore further. Also, larger skincare companies may prefer larger agencies with more resources, designers, branding experts, and decision-makers. Rebranding takes longer and costs more when more people are involved in the design and decision-making process.
Lastly, a larger agency can provide more expertise and experience, resulting in a stronger, more impactful skincare business rebrand.
To sum up, depending on the business’s needs, rebranding could cost several thousand dollars to tens of thousands. Also, your skincare business’s budget must account for its size, logo, packaging redesign, website overhaul, and various marketing campaigns, each with its own unique costs.
Moreover, businesses looking to rebrand should invest 4-8% of their annual revenue. This estimate can be adjusted to fit your skincare business’s needs. A small skincare brand that only needs minor updates may fall on the lower end of this range, while a larger brand that needs a complete rebrand may need to allocate a higher percentage of its annual revenue.
Aventive Studio is a smart choice for a rebranding agency if you are in the skincare industry. Our professional designers, branding strategists, and project managers are here to assist you in developing a distinctive and powerful identity for your company from the ground up. Get in touch with us today to find out how we can help your skincare company grow.