Picking The Right Fashion And Beauty Retailer Stock To Invest In Just Got Easier

Earlier this year, TikTok user @Jaxwritessongs shared an original song on the short-form video platform that offered some scathing commentary on Victoria's Secret and the fashion industry enabling powerful men to prey on the insecurities of young women for profit. The song hit such a nerve with women who could relate that it went viral. At the time of writing, the video has more than five million views and nearly 80,000 comments. A conversation has been started, and it's one that is long overdue.


In 2017, Groupon reported that American women who invest in their appearance spend an average of over $225,000 on products that claim to improve it, including clothes, skincare, makeup, fitness, and haircare, throughout their lifetimes. There is a way to take some of that money back and that way is investing in the brands you buy these products from. Here is what you need to know to put fashion and beauty retailers to work building wealth for you rather than depleting it.

What are public stocks?

When a corporation raises funds for startup or expansion costs, small shares of that business are sold as public stocks, also known as equities. Once the stocks are purchased from the companies that issue them on the primary stock market, they can be traded by stockbrokers on the secondary stock market, as detailed by Annuity.org. Well-known stock exchanges such as Nasdaq and the New York Stock Exchange are part of this market. The very concept of supply and demand affects stocks the same way it affects consumer goods; prices fall when there is more supply than demand and rise when there is more demand than supply.


While most stock market activity has historically taken place through stockbrokers, the landscape is quickly changing thanks to automated trading platforms. These platforms use advanced software and algorithms to apply stringent rules to the automatic trading of stocks without human interference (via Investopedia). Apps like Acorns and Robinhood are also available to the public and allow consumers to buy and sell stocks directly from their smartphones, cutting out the middleman and making investing more accessible than ever.

How to select beauty and fashion retailer stocks

Warren Buffet is the sixth wealthiest person in the world, according to Business Insider India, and he made his fortune by investing in the stock market. One piece of investment advice he frequently shares with media outlets like Forbes is to avoid investing in businesses that operate in industries you're not familiar with. In other words, invest in what you know. For most women who have been heavily influenced by advertising that cashes in on self-doubt, what you know is fashion and beauty. The next time you go into your favorite store to shop, consider it a research mission. What is the shopping experience like for consumers? Is finding what you want easy or is the store disorganized? Are employees well-trained and helpful or rude and disinterested? Are the products in stock, high-quality, and on-trend?


Once you get home, it's time to move on to phase two of your research. Take a look at the company's online presence. Are they producing interactive social media content and high follower counts? Is their website easy to navigate for online shopping? Are the return policies hassle-free? Before you pull the trigger on buying the company's stock, consider consulting a financial advisor or learning more about evaluations from a trusted investment educational resource like Kiplinger. Then, dive into building your own personal wealth.