Beauty Brand The Ordinary ranked number one in Vogue's Business Beauty index based on consumer sentiment, digital savviness, and commitment to sustainability. Vogue Business Head of Advisory Anusha Couttigane joins Yahoo Finance Live to break down these rankings.

"One of the things we have seen consumers expressing more concern over is the economic situation that they're facing," Couttigane says, noting accessible pricing and eco-friendly ethos to be factors that particularly resonate with consumers today.

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Video Transcript

RACHELLE AKUFFO: Well, Vogue Business is doing a deep dive into your favorite beauty brands and how they handle everything from sustainability practices to brand awareness as companies navigate difficult macro headwinds. Now, The Ordinary emerged as the top performing brand for the index in 2023 with Charlotte Tilbury and Kiehl's coming in close behind. For more on this report, I'm joined by Anusha Couttigane, Vogue Business head of advisory.

Thank you for joining me this morning. So this is a very interesting index because when you look at what it covers, consumer, digital, ESG, and innovation. How did the ordinary end up topping this list?

ANUSHA COUTTIGANE: Hi, Rachelle. Well, yeah, it's a really interesting result. One of the things that we've seen consumers expressing more concern over is the economic situation that they're facing.

Everyone is starting to face off to that cost-of-living crisis. And the research that we conducted in six markets shows that, globally, 35% of consumers say that if prices continue to increase, they're likely to cut back the frequency of their spend on beauty. And 30% of those global consumers say that they might actually switch to less expensive products.

So actually there's a really good reason why The Ordinary has emerged on top. It's a brand that consumers love. It's a brand that consumers see the value of both in terms of the product efficacy and the value of the product. And it's a brand that's going to remain really resilient in that economic situation. But there are other reasons.

As you mentioned, we cover ESG and innovation as part of this study too. And one of the things that we've identified with some of the top performing brands, including The Ordinary, is their commitment to sustainability, not just as a business, but how they're making that accessible to consumers as well, so, for example, by providing really clear guidelines on how consumers can deal with those products at the end of their life cycle, how they can recycle the products, how they can make sure that they're adhering to the rules and regulations in their local markets. And by making that information really accessible to consumers in a very convenient way, it's enhancing the experience that consumers receive from these brands as well and making sustainability a reality for them.