Alex Keith on Balancing Tradition with Transformation in the Global Beauty Market

Constantly and deeply understanding consumer needs is crucial to how legacy beauty brands like Head & Shoulders, Pantene and Old Spice balance tradition with innovation to lead market growth over time. P&G Beauty’s Chief Executive Officer Alex Keith discussed this approach at ShopTalk Europe, an annual event uniting Europe’s most senior retail and brand decision-makers for forward-thinking discussions on the technologies, trends and transformations impacting what consumers discover, shop for and buy.

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Beauty’s Growth Opportunity

Serving consumers with a portfolio of daily-use products in categories where performance drives brand choice is a critical part of P&G’s strategy, including in the skin care, personal care and hair care categories, where the enduring allure of beauty raises the bar on consumer expectations. When asked why Beauty is such a consumer-driven category, Keith emphasized that beauty products play a fundamental role in consumers’ daily routines like washing hair and skin, but also must deliver on more elevated experiences and specialized benefits. This dual role underscores the category's resilience and potential for sustained growth.

Reflecting on the pandemic’s impact on beauty categories, Keith noted several intriguing consumer behavior shifts, including a significant rise in demand for intensive at-home hair treatments. As consumers sought ways to replicate salon experiences at home, sales for products like Pantene’s Miracle Rescue treatments skyrocketed, especially in markets like Europe, reaching double-digit growth rates and delivering meaningful segment and category growth. Today, at-home treatment products remain growth drivers as consumers use home hair care treatments for special self-care moments in-between salon services.

Consumer Insights Fuel Innovation

A core element of P&G's strategy involves deep consumer understanding, which Keith described as a collective responsibility across P&G’s Beauty organization. By continuously engaging with consumers, P&G identifies unmet needs and barriers that inspire superior, highly delightful innovations.

For example, despite high dandruff prevalence around the world, many consumers were still not using anti-dandruff products. This insight led to the development of Head & Shoulders Bare, a minimal ingredient anti-dandruff shampoo. The product, featuring only nine ingredients and 45% less plastic packaging, successfully attracted younger women who prefer minimal ingredient products within their beauty routine, bringing in a significant number of new users to both the brand and the antidandruff segment. Keith shared, “Bare’s two new products are among the top five best-performing new items in the U.S. mass hair category in 2023. The consumer delight is obvious in these results.”

Balancing In-House Innovation and External Partnerships

Keith discussed the balance between innovating within P&G’s established brands and exploring external opportunities. Core brands like Head & Shoulders and Pantene are pivotal for category growth, but there are instances where partnering or acquiring other brands is equally beneficial. The acquisition of Mielle, a brand catering to textured hair, exemplifies this strategy. Mielle’s success in resonating with a specific consumer segment complemented P&G’s technological and market reach, creating a synergistic growth opportunity. Mielle is already one of the fastest-growing brands in the US mass hair care market.

Keith also noted P&G takes a deliberate approach in enabling acquired brands to continue operating independently. “We’re connected, we’re supporting them, we’re bringing them capabilities, but it’s really important that the core of what these brands are remains in place.” For instance, brand founder Monique Rodriguez continues to lead Mielle, ensuring the brand’s authenticity remains intact.

Preserving Heritage While Embracing Modernity

Bemhenna closed the conversation with a discussion on the challenges associated with maintaining the relevance of long-established brands in a fast-moving category like Beauty. Keith acknowledged this requires a delicate balance of innovation and tradition, illustrating P&G’s success in this space by sharing Old Spice’s evolution from its nautical-themed heritage dating back to the brand’s creation in 1938 to today’s modern, humor-led campaigns, such as “Men Have Skin Too.” While the brand continues to innovate with new product forms like moisturizing body washes, it retains recognizable, relatable brand elements, such as its historic brand mark, relatable brand character and signature red packaging color.

The discussion underscored the dynamic interplay between tradition and transformation in the beauty industry. P&G’s commitment to consumer-centric innovation and maintaining brand heritage positions it to navigate the evolving market successfully. As consumer needs and preferences continue to evolve, P&G’s holistic approach ensures its brands remain relevant, resonant, and poised for growth.