We live in volatile times. To understand how the leaders who are speaking at the 2025 WWD Beauty CEO Summit are approaching both the challenges — and opportunities — around operating in such a complex global environment, we asked them to share their thoughts with us. We asked: As you look to the next 12-24 months, what is a key issue the industry faces and how do we rise to the challenge?
Michel Brousset, founder and CEO, Waldencast
The beauty industry is at a pivotal moment. The rise of TikTok and short-form content has shifted the center of gravity from brand-building to product moments. Viral “hero” products can now outsell established lines overnight, driven by influencers, aesthetics, and speed — not necessarily by formulation, performance or brand story.
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This phenomenon has democratized discovery, but also commoditized attention. When a product goes viral, it often overshadows the brand behind it, challenging traditional models of customer loyalty and long-term value creation. Ultimately, the long-term value of a brand is the value of a unique and relevant brand equity. It is its positioning, its beauty expression, its brand values and not in just being a “collection of products.”
Key strategic tensions have emerged:
• Product vs. Brand: Are we in a post-brand era, where the product is the brand?
• Speed vs. Sustainability: How do brands balance the pressure to go viral with the need to build meaningful, lasting relationships with consumers?
• Algorithm vs. Authority: What happens to the role of experts, R&D and long-form storytelling in a feed driven by trends and virality?
• Resilience vs. Relevance: Can legacy brands stay relevant without compromising on their original positioning — or must they adapt to trend cycles to survive?
Brands are rethinking everything, from product development to go-to-market strategy, in a landscape where a TikTok can make or break them. The question isn’t just how to go viral, but whether the pursuit of virality is undermining the very foundations of brand value in beauty.
Parham Aarabi, CEO, PRE Inc.
Artificial intelligence is rapidly emerging as both a catalyst for real business growth and a source of overinflated expectations. For beauty brands and retailers, a critical question will be how — and where — to adopt AI in their operations. Identifying which use cases deliver meaningful impact versus those that do not will be essential. Historically, companies that embrace innovation early, learn from initial implementations, and adapt quickly have gained a competitive advantage. AI will likely follow a similar pattern: Brands that are willing to pilot new technologies and iterate based on insights will be best positioned to capitalize on this transformative shift.
Alex Keith, CEO, P&G Beauty
What stands out the most today is the need for increased agility. This has long been a defining characteristic of the beauty industry and for those in it, but the need is exponentially multiplying thanks to accelerating changes in retail, rapidly evolving consumer habits and needs, the influence and impact of technology advances and so much more. Strengthening agility muscles in teams and transforming our cultures to be even more responsive to these shifts is a leadership imperative.
Kecia Steelman, president & CEO, Ulta Beauty
We are all experiencing an uncertain economic environment right now, both domestically and globally. From tariffs to inflation, brands and consumers are navigating new challenges. This includes changes that we may be unable to anticipate at the moment, as the landscape continues to evolve. The reality we need to accept is that we will be unable to control certain elements that impact our businesses. What I always come back to with our Ulta Beauty team is focusing on controlling what you can control.
As it relates to our brand partners, we are committed to leaning in with them to navigate the environment together. We know they may be impacted in different ways than we would as a retailer and vice versa. It’s imperative that we work together to keep our beauty industry strong. We have always upheld a nimble business model and can be ready to pivot when changes inevitably surface.
When it comes to consumer concerns, we know some guests may pull back on discretionary spending. This means we must balance pricing strategies with maintaining perceived value to retain those loyal, price-conscious consumers. Ulta Beauty is uniquely positioned to meet this challenge head-on with our differentiated approach that offers in-store discovery, unique experiences and services and human connections that demonstrate value far beyond price.
Maly Bernstein, CEO, Bluemercury
Anxiety. In today’s uncertain macroeconomic climate, even those further up the income ladder are feeling a heightened sense of anxiety. This overwhelming unease is driving more consumers to adopt more cautious and deliberate behaviors. As a result, they’re increasingly seeking out sources of comfort and a sense of calm, control and care. Consumers are drawn to brands that offer genuine, connection-driven experiences — brands that make them feel understood, supported and truly heard, rather than simply sold something. They want to feel seen, inspired and delighted. In an age where people are increasingly “connected,” how much are we actually connecting?
Real connection can often feel elusive in the digital world, which is why retail experiences prioritizing the human element now stand apart. At Bluemercury, we know beauty is personal. Our “uncover to discover” philosophy empowers our beauty experts to engage with each client in a way that goes beyond the surface, forging meaningful relationships. So, in challenging times, we’re even more passionate about building lasting bonds with our clients, supporting them through every stage of life and creating moments of joy along the way. We believe connection has become the new currency.
Mandy Fields, CFO, E.l.f. Beauty
There are many issues we’re facing over the next year — weak consumer confidence, global trade complexities, a potential recession, the list goes on. What can we do as a beauty industry? Focus on what we can control: Continue to deliver your community’s favorite products, continue to innovate, continue to be the source of joy your community looks forward to every day. Beauty has the unique ability to lift spirits, and during difficult times, providing our community with moments of joy is more important than ever. While there will be trade-offs and strategic decisions to make, keeping our focus on long-term growth and industry resilience will ensure our collective success.
Taylor Hamilton, CEO and founder, Recom
Uncertainty is no longer a disruption; it is the backdrop. Global trade is becoming more fragmented as tariffs and protectionist policies strain supply chains and compress margins. Economic signals are mixed. Consumers continue to spend, but with greater discernment and higher expectations around speed, value and trust. In this environment, brand leadership is being redefined. It’s no longer about weathering volatility; it is about creating clarity within it. The job is to remain consistent while staying adaptive, to feel familiar without becoming fixed. The playbooks built for stable markets no longer apply. Today, leadership means designing for change while holding firm to your core.
At the same time, new channels are reshaping how and where consumers engage. Marketplaces, once an afterthought, are now central to product discovery and decision-making. Over 60 percent of product searches begin on Amazon, and nearly 60 percent of global e-commerce flows through marketplaces. These are not just new platforms; they are signals of shifting consumer behavior. These spaces have become the proving ground for brand agility, coherence, and creativity. It is where loyalty is tested, and brand equity is put under pressure.
To meet this moment, channel strategy must be elevated from a backend function to a core pillar of brand-building. We must invest in storytelling that travels, build teams that move at the speed of culture and use data not just to optimize performance but to shape vision. The future will remain uncertain. But a strong, intentional presence can offer its own kind of certainty.
Vennette Ho, global head of beauty, personal care & wellness, Raymond James
A key issue the industry faces today is the sheer rate of change and uncertainty in the broader macroeconomic environment. The tariff situation, the uncertain geopolitical landscape, the speedy rise of AI, virality — it can all be overwhelming and dizzying for companies and brands trying to navigate the day-to-day. Literally every moment it seems as if there is new news that impacts businesses and consumers.
There may be an inclination to simply ignore everything and stay static, and hope it all blows over. On the other hand, there’s also a natural instinct to react impulsively from moment to moment.
The best thing that businesses and leaders can do is to stay calm and remain nimble. Focus on what you can control. Make smart decisions that are relevant for the times and guided by your values, your strengths and what makes the most sense for your business. There’s power in embracing change and evolving through calculated risks. Is it testing and learning new digital platforms? Thinking about different approaches to pricing or how to give value to your customers? Are there moves you can make to diversify and de-risk your supply chain? Thoughtful strategy and effective creativity will always win out, especially during turbulent times.
Armaan Mehta, cofounder, Odore
Linking operational resilience with relationship resilience is the new leadership mandate.
Over the next 12 to 24 months, the beauty industry faces a critical challenge: maintaining consumer trust and brand loyalty amid economic pressures from evolving global tariffs and trade regulations.
These shifting trade dynamics will impact product costs, market accessibility and supply chain efficiency. As brands navigate these complexities, they risk losing the hard-earned trust of price-sensitive consumers who may not understand why their favorite products have suddenly become more expensive or reformulated.
One solution lies in transforming this challenge into an opportunity for deeper consumer engagement. Forward-thinking leaders must not only diversify sourcing strategies and enhance local manufacturing, but also build a resilient information chain with the consumer at its center. Customers today reward brands that invite them behind the curtain, explaining why a favorite serum is back-ordered, for example, or why a price has ticked up.
By fostering authentic communities, brands can maintain transparent dialogue about necessary pricing adjustments, ingredient changes and sustainability efforts. This approach turns consumers into informed allies rather than confused customers. Community-centered brands will gather rapid feedback, gain deeper consumer insights and strengthen loyalty —ensuring sustained growth despite economic headwinds.