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Why niche beauty brands dominate: Finding your unique selling proposition (USP)

Stand out and grow your beauty brand by owning what makes you different

As with many industries, the beauty landscape is, well… oversaturated. 

I can go on and on to list some of the best-known beauty brands like L’Oreal, Estee Lauder, Chanel, L’Occitane, but fortunately for you, we don’t have all day. 

And it’s because of this saturation that standing out is imperative to success. Yet, it’s not just about having a great product—it’s about having a crystal-clear identity. That’s where a strong unique selling proposition (USP) comes in. 

To start, let’s break down what a unique selling proposition is:

five finger lipsticks

What is a USP? (and why it matters in beauty)

So, what is a USP? 

Your unique selling proposition is what sets you apart from every other competitor. It’s not just a tagline or aesthetic; it’s a combination of your brand’s mission, audience, values, and product promise. In the context of niche beauty, which we’ll be covering in this post, a USP is the guiding star that attracts a loyal customer base and fuels long-term growth.

In a market dominated by beauty giants (like the ones mentioned above), niche brands are thriving because they speak directly to specific needs, identities, and values. Consumers don’t want to buy from everyone—they want to buy from someone who gets them.

Why niche beauty brands are winning

Unlike mass-market brands that appeal to the broadest possible audience, niche beauty brands focus on depth over breadth. They often cater to a targeted group of people—and they do it exceptionally well.

Here’s why niche makeup brands and beauty companies are gaining market share:

  • Clear identity: They stand for something specific—whether it's cruelty-free formulas, skincare for melanin-rich tones, or gender-neutral beauty.
  • Stronger community: Niche brands foster loyalty because their customers feel understood and represented.
  • Agility: Smaller, more targeted brands can pivot quickly to meet trends or respond to feedback.
  • Purpose-driven: They tend to be values-led, aligning with the growing number of conscious consumers.

We know it can be tempting to say your brand is relevant to “everyone,” but when you’re targeting everyone, you might fall into the pit of targeting no one, since consumers can’t resonate with your brand. 

Niche beauty brands that nailed their USP

Want to see unique value propositions in action? 

Here are a few standout niche beauty brands that have carved a space for themselves by owning a clear, memorable USP, making it known that the brand is for a specific consumer. 

Tower 28

USP: Clean makeup designed for sensitive skin (but still fun). 

Tower 28 focuses on clean, non-toxic products specifically for sensitive skin. Their USP is “clean makeup designed for sensitive skin." In the brand’s about page, they share the story of Tower 28 and how founder Amy Liu suffered from sensitive skin her whole life and got sick of boring, clinical brands. So she solved this problem for herself through Tower 28 and other sensitive skin audiences! 

Freck Beauty

USP: Makeup lovers who are bold, original, and made to stand out. 

Originally launched with one freckle-creating product, Freck tapped into an audience that wanted to highlight and enhance beauty marks for what they really are–beautiful! After they solidified themselves in this unique beauty niche, they grew by tapping into playful, expressive, and Gen Z-forward aesthetics.

Ami Colé

USP: Clean beauty for melanin-rich skin.

Designed specifically for melanin-rich skin, Ami Colé’s USP centers on celebrating natural beauty with minimal, glowing makeup. The creators found that there weren’t beauty products out there for them; something was missing for melanin-rich skin, so they solved it themselves. 

Each of these brands found success not by trying to be everything to everyone, but by owning a specific lane.

How to find your unique beauty niche

If you’re building a niche beauty brand, your USP needs to be more than a surface-level statement. 

Here’s how to develop one that actually resonates with your target audience:

1. Know your audience better than anyone else

Ask yourself questions about your audience, like: 

  1. Who are they? 
  2. What are their values?
  3. What are their frustrations? 
  4. What gaps are they experiencing in the current beauty market? 
  5. What do they wish existed?

2. Define your point of view

Identify what your brand stands for. This should start at the core of why you started the company in the first place. For example:

  • Are you sustainability-focused
  • Is your formulation science-led? 
  • Do you serve a specific community (e.g., aging skin, acne-prone, BIPOC, LGBTQ+)?

 

Venn Diagrams of USP

 

 

3. Keep it simple, but meaningful

Your USP should be easy to remember but packed with meaning.

Think Glossier's USP and philosophy, "Skin first. Makeup second”. This speaks to audiences that care about skincare and want to ensure the makeup they’re wearing is effortless with beneficial ingredients. 

4. Test and validate

When you craft a USP, you’re not immediately stuck with it for life. 

Create some options and then use surveys, interviews, and beta launches to test your messaging. You’re looking to gather insights on the following: 

  • Does it resonate? 
  • Is it memorable? 
  • Would customers repeat it back to someone else?

How to differentiate your brand in a crowded market

Finding your niche is just the beginning—owning it is where the real magic happens. 

With new beauty businesses launching every day, even a well-defined USP can get lost in the noise if it's not backed by consistent, intentional execution. That’s why standing out in a saturated market means going beyond product formulation and tapping into how your brand looks, sounds, and connects. 

It's about creating a full experience that makes your audience feel seen. 

To truly stand out:

  • Invest in visual storytelling: Your brand’s look should reflect its essence. Color palettes, logo, packaging, and fonts should all align with your mission.
  • Create content that educates or inspires: Use blogs, tutorials, and social posts to build a narrative that speaks to your audience's needs.
  • Collaborate within your community: Partner with creators and experts who already speak to your target customer.
  • Deliver a stellar product experience: Your packaging, customer support, and post-purchase communication all reinforce your brand.

Niche beauty is the future of differentiating your brand

The rise of niche makeup brands proves that you don’t have to be massive to make an impact. In fact, being smaller and more focused can be your biggest strength.

Whether you’re just starting out or refining your current business, take the time to define what truly makes you different. Your USP is the magnet that draws in your ideal audience—and keeps them coming back.

So, what’s your unique selling proposition? Define it. Refine it. Lead with it.

Because in today’s beauty market, niche brands aren’t just surviving—they’re shaping the future of the industry.

Your dream beauty brand awaits. 

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