The Evolution of Beauty Retail Is Creating Opportunity for Emerging Brands
In a recent Substack post, Beauty’s New Battleground: Shelf Space vs. Scroll Space, Cristina Nuñez of True Beauty Ventures offered an insightful investor perspective on where beauty retail is headed and why emerging brands need to reassess how and where they show up.
Some of her key takeaways included:
TikTok Shop and Amazon are now full-funnel platforms, driving discovery, purchase, and repeat
Sephora is doubling down on exclusivity, often requiring limited distribution in exchange for access and merchandising support
Retail strategy is no longer binary — the most successful brands blend DTC, traditional retail, and newer marketplaces
Retail readiness now means platform fluency, creator partnerships, and knowing which channels drive the strongest customers
It’s a shift that many of you are already feeling.
Department stores have steadily lost relevance. And while Sephora and Ulta continue to offer strong retail experiences, there is still room for more immersive, discovery-driven options. These are important not only for consumers looking to explore but also for brands trying to break through. Sephora and Ulta simply cannot carry every high-potential brand entering or expanding in the market.
That’s why I’m encouraged by the accessibility of TikTok Shop. It opens up new pathways for indie brands that may not have access to traditional doors. And when heritage prestige brands like Clinique invest in fully built-out storefronts on Amazon, it signals a major shift. The old stigma is giving way to a new reality rooted in trust, convenience, and conversion. I am also watching closely to see how Ulta Beauty’s upcoming third-party marketplace might expand access for high-growth, early-stage brands.
Nuñez’s point about exclusivity is particularly relevant. Retailers like Sephora often expect limited distribution from their partners. For those of you with Sephora in your sights, an exclusive relationship can be a powerful growth lever, but it comes with tradeoffs. I often encourage founders to think long-term: Where do you want to be in three years? What kind of retail setup supports your brand vision? Be intentional with your early rollout. Expanding too broadly, too quickly could make it harder to secure or sustain the partnership.
Just as important, do not rush into retail too soon. Even with rising acquisition costs, DTC still holds strategic value. It gives you the space to refine your brand’s positioning, learn your business, build direct customer relationships, and collect the kind of first-party data that makes you a stronger retail partner when the time comes.
Nuñez’s full post is a timely and thoughtful read, especially for founders evaluating their next phase of growth.
📝 Find her full Substack post here.
