Is Skincare a Scam?

"Is skincare a scam?", you might wonder after spending $$$ on products that don't work. Or better put, "does the beauty industry turn skincare into a scam?". In many ways, yes - unfortunately. As consumers, we crave innovation, seeking skincare products that offer real results. But, are we getting what we expect, or are we just falling for clever marketing tricks? In this post, we'll explore how the skincare industry, part of the fast-moving consumer goods (FMCG) sector, often prioritizes packaging and marketing over genuine skin benefits. With most products offering little more than a fresh scent or a smooth texture, it's time to rethink our expectations and learn how to find skincare products that truly work.

Skincare and mayonnaise: a surprising parallel in innovation

From a business perspective, the skincare industry is part of the so-called fast-moving consumer goods (FMCG) sector, together with mayonnaise, dishwashing tablets, and chocolate bars. How much innovation do you think is happening for mayonnaise? Lighter texture, new packaging—that's pretty much it. Unfortunately, it is the same for your moisturizer—at least in 80% of cases.

Inconvenient truth about innovation in skincare

When you, as a consumer, think about innovation in skincare, you probably have in mind new actives and more effective formulations that actually do something for your skin. As consumers, we expect something more similar to pharma: new molecules, new approaches that treat issues like photodamage, pigmentation, or breakouts. That is not how FMCG industries think about innovation. For them, innovation is giving old products a new feel: adding new flavors, a silky texture, cute packaging, and an exciting marketing spin. This type of innovation is cheaper and faster; no clinical trials are needed. Just tweak the formulation, run a focus group with a few consumers to track their reactions to the product's marketing story and how it feels during application, and you're done.

The skincare industry is run by marketing; over 70% of skincare companies’ budgets are spent on marketing, and only 4% is allocated to innovation (including packaging!). These numbers are even more concerning for most small skincare brands that don't own any research facilities. In comparison, pharmaceutical companies spend 15-40% of their budgets on R&D, with most of this funding going towards the efficacy of treatments and clinical trials.

This is why, when you hear about an innovative product in skincare, it is more likely to be a marketing scam than a true innovation. Of course, there are exceptions, but they are rare. Over the last three to four decades, only a few truly new breakthrough actives have appeared in skincare; most of them are sunscreen filters and peptides. The most potent class of skincare actives still remains retinoids—which were discovered in the pharmaceutical field over fifty years ago.

With this knowledge, as consumers, we should not be surprised that most cosmetic skincare products simply do not work, especially for concerns other than skin moisturization.

The industry reaps what it sows: no investment in efficacy research = no true skin results. What is left is differentiating on marketing: celebrities, beautiful packaging, and exciting brand stories.

How to avoid getting "scammed"?

But we want skin results; we want products that work and truly help our skin health and appearance. What should we do? Here is a five-point plan to help you avoid being scammed.

1. $1
2. $1
3. $1
4. $1
5. $1

WIMJ Search allows you to select skincare products based on what's inside. Filter products by actives included, and exclude ingredients you don't want. Check the concentration of ingredients and potential irritants.

• Research and development (R&D) expenditure of L'Oréal worldwide from 2009 to 2022 https://www.statista.com/statistics/517825/global-randd-spending-of-l-oreal/
• ANNUAL REPORT 2021 FINANCIAL PERFORMANCE https://www.loreal-finance.com/en/annual-report-2021/financial-performance/
• THE ESTÉE LAUDER COMPANIES INC. INDEX TO ANNUAL REPORT https://media.elcompanies.com/files/e/estee-lauder-companies/universal/investors/investor-resources/toolkit/form-10k-2021.pdf
• Historical Selected Financial Data Shiseido Company https://corp.shiseido.com/report/en/2021/pdf/financial-statements-en.pdf
• Beiersdorf AG's spending on research and development from 2001 to 2022 https://www.statista.com/statistics/273039/beiersdorf-ag-spending-on-research-and-development-worldwide/ 
• Pfizer's expenditure on research and development from 2006 to 2022 https://www.statista.com/statistics/267810/expenditure-on-research-and-development-at-pfizer-since-2006/#:~:text=During%202021%2C%20Pfizer%20expended%20some,with%20some%209.5%20billion%20dollars

Here is a video from a dermatologist Dr. Usama Syed expressing some of the same frustrations about the state of the skincare industry. Thank you our community member Jackie Tee for finding it and starting this discussion in our community.

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