Consumer Buying Behavior

By Kaitlyn Reyes

Haus Labs is a cosmetic brand founded by Lady Gaga. It offers clean makeup that fosters creativity and artistry. Haus Labs’ mission is to encourage its consumers to express their individuality and empower themselves.

Haus Labs’ Market Segments

Haus Labs’ demographic is Generation Z and Millennials. Their target market is ages 18-35. The brand prides itself on inclusivity for diverse skin tones and gender expression (Bavaresco, 2024). Haus Lab is available online and in stores through its personal website and Sephora. It is headquartered in the United States, with its primary geographic location being the United States. Haus Labs has strong psychographic segmentation strategies as its values are clean beauty and inclusivity. Haus Labs is cruelty-free and vegan. It supports diversity and creativity. The behavioral segmentation is not as prominent with Haus Labs, but through its partnered retailer, Sephora. Sephora has a rewards program for customers who purchase Haus Labs through them, allowing them to collect points that can be redeemed for store credit.

Key Points for Market Segmentation Strategies

A successful business must be able to adapt and change each of its market segments throughout its career. It is crucial not to stay stuck in ways that trap your business and keep it stuck in time. Without welcoming appropriate change, consumers may outgrow their business and take their loyalty elsewhere. Although change is good, a company must not change its values and morals unless it is for the better. Customers align themselves with the brands they purchase from. If a company swiftly changes its beliefs and ethics, it will lead to a significant drop in customer retention. A company needs to have strong ethics and morals. A demographic segmentation can be altered at any time. A company might see benefit in growing with its initial audience. On the contrary, a company may not yield the amount of profit it needs from the original demographic. Tailoring the demographic over time can improve sales and increase customer loyalty. A behavioral segmentation strategy is often overlooked in newer companies. Offering promotional codes and a loyalty program can foster a strong customer-company relationship. It will create a community around the brand and a strong brand reputation.

A New Market Segment

A market segment worth exploring is refillable makeup products. Most makeup does not last over a few months and is packaged in tons of plastic. Almost all of the packaging is meant for single-use; once the makeup runs out, it is trash. Brands should develop refillable packaging to reduce waste. The refills will come in smaller cartridges or pans that can be placed within the larger package. These refill cartridges and pans can also be sent back for cleaning and recycling for other orders. Companies can adopt a recycling program that offers points for store credit or discounts, encouraging sustainable practices. Refillable makeup is environmentally conscious by reducing waste and lowering the carbon footprint.

Reference

Bavaresco, R. (2024). Promoting inclusivity through makeup: Haus Labs’ social media strategy. Promoting Inclusivity Through Makeup: Haus Labs’ Social Media Strategy. https://www.dtcpatterns.com/dtc-patterns-articles/promoting-inclusivity-through-makeup-haus-labs-social-media-strategy#:~:text=Haus%20Labs%20utilizes%20their%20Instagram,and%20nurtures%20an%20inclusive%20community.