Beauty brands can lean into the space to capture more consumers where they are spending time as gaming gains traction with over 3.24 billion gamers nationwide, according to trend forecaster WGSN.

In a webinar, client specialist Anchi Wong cited a report by GWI indicating that 39 percent of all beauty fans play video games and 22 percent are fans of esports.

“This overlap of beauty lovers and gamers has encouraged beauty brands to flock to gaming-adjacent digital spaces such as Twitch and Discord, which were originally designed to service the needs of gamers, to launch new experiences and community-building reforms,” she said.

Wong said Twitch has expanded in popularity, boasting 140 million monthly active users and an average of 103,000 live broadcasts at any time.

“Considering 69 percent of Twitch viewers are more likely to consider brands that creators use and 66 percent are more likely to consider brands that creators recommend, the platform can have a real impact on sales,” she added.

Wong said beauty brands are also capitalizing on esports live streams while cosplay streamers are another group that they can engage with.

She said some brands have embraced the direct-to-avatar economy with their capsule collections that saw users experiment with make-up products on their avatars and as they also move into a more mature Web3 space.

Online avatars are an important part of a gamer’s identity, creating big opportunities for brands to engage players through a direct-to-avatar (D2A) model, Wong said.

“By aligning with gaming platforms, brands can add their own content and products onto already existing systems instead of having to create entirely new games for their consumers,” she said.

To embrace the avatar economy and D2A model, Wong advised beauty brands to create new ways for Gen Z to express themselves on and offline.

“Launch URL products that allow them to explore similar options for their avatars,” she said.

Wong also cited the need to leverage gamification to build interest in products and encourage brand loyalty amid the attention recession.

She said building online communities is a “great way” for brands to nurture customer loyalty as they also ensure products and marketing are inclusive.

“Brands should ensure their products and communication efforts are accessible to a wide range of people, who make up the increasingly diverse community of gamers,” she added.