Accounting firm rises aligns with trends driven by GenZ, celebrities, and ubiquitous brand ambassadors
LOS ANGELES, Jan. 29, 2024 /PRNewswire/ -- Lineal CPA, the accounting firm recognized by global CEOs for financial direction and accounting services, today announced that it is now the top firm providing fractional Chief Financial Officer (CFO) Services to eCommerce beauty brands. Fractional CFOs are part-time financial management executives who perform all of a CFO's strategic and operational duties, but on a contract basis. This achievement reflects the firm's support for a sector experiencing rapid growth due to unprecedented changes in technology and consumer behavior.
"A beauty brand that's building its business needs the kind of strategic thinking you get from a seasoned CFO, but they may not have the need for a fulltime executive at this stage of life," explained Nirali Thakkar, Head of Accounting at Lineal CPA. "This is the problem we solve. Our fractional CFOs understand the distinctive financial realities of the beauty industry."
The firm is serving a vital need, given the remarkable growth of the luxury beauty category. eCommerce beauty businesses are expanding, with the influence of GenZ, celebrities, trends, and ubiquitous brand ambassadors fostering increased interest in the segment. Indeed, the industry appears to be undergoing a major transformation. The move to online shopping—away from in-store retail—signals a profound shakeup of buying patterns that are at least 100 years old. The assumption that women only buy cosmetics at department store counters is no longer unquestionable.
Instead, with the beauty industry's digital revolution in full swing, customers are not only changing their buying venue, they're also revealing a change in product preferences. Consumers are gravitating towards higher-quality luxury beauty brands in increasing numbers. "It's what you could call 'premiumization' in the industry," Thakkar added.
Generation Z, comprising people born between 1997 and 2012, is proving itself to be the key demographic driving change in the beauty industry. They are redefining beauty standards for their own particular styles. This cohort is also "digital native" and wired into social media and its associated value system. This means inclusivity and authenticity, among others. Brand narratives need to find an affinity for this generation's distinctive worldview. It means influencers building communities, not just selling products.
Getting to success will require partnering with experts in business operations, strategy, and finance. Emerging eCommerce beauty businesses need to align themselves with people who can advise them on product development, pricing, and positioning. "Success in this digital realm hinges on effective digital marketing and efficient supply chain management. Brands that have embraced these aspects are witnessing substantial growth," Thakkar said.
Media contact:
Nirali Thakkar
nirali@lineal.cpa
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SOURCE Lineal
