ROI Optimization Squeezes Beauty Brand Teams and Assets

Job Replacement and Industry Anxiety

Multiple industry insiders revealed that brand department roles in some beauty companies have been "ROI optimized," with functions replaced by growth-oriented positions. Jiang Liangyan, Deputy GM of Shandong Freda Biotech and Brand Head of Eglty, noted that AI and algorithms are hot topics, even sparking GEO trends. Many brand managers fear being left behind, reflecting a fundamental shift in functional positioning.

Silent Loss of Brand Assets

When growth metrics become the sole KPI, the trust and mental share accumulated over time face erosion. The text states that ROI "optimization" targets not just brand staff, but brand assets themselves. This short-term focus may blur brand uniqueness in consumer minds, impacting repurchase and premium pricing capabilities.

Long-termism in Industry Context

Recent reports highlight brands like Yuzhe and Dermaclara emphasizing "long-termism" to differentiate through medical skincare or problem-solving. However, under intense ROI pressure, this strategic resilience conflicts with short-term performance reviews. The beauty industry stands at a crossroads of efficiency and value, balancing algorithm-driven growth with brand worth.

Implications for B2B Procurement and Brands

For B2B buyers, evaluating brand partners should focus on brand asset health, not just short-term sales. Brands must re-examine organizational structures to avoid turning brand departments into cost centers or mere growth tools. It is advisable to establish quantified brand asset metrics alongside ROI, ensuring growth pursuits do not erode unique mental positioning, laying the foundation for long-term cooperation.