Human beings are visual creatures. We make many decisions based on what we see. People are obsessed with beautiful things and existence. It makes more sense when you know that the history of makeup and beauty products has spanned at least 7000 years and almost exists in every society on the earth.
Cosmetics and beauty products have always been a successful product segment of e-commerce. However, the global beauty industry has been impacted by the New Coronary Pneumonia crisis, and the following are the response methods of the industry:
Avon and other brands donated $2 million worth of basic personal care and hygiene products soap and shower gel to limit the spread of COVID-19.
Many leading brands such as Kylie Cosmetics have announced the production of hand sanitizers.
Various on-site activities planned by industry leaders have been replaced by virtual activities. For example, on August 26, participants of the Mark Jacobs perfume "Perfect Perfume" release party can watch music performances on the sofa, let fashion photographers paint portraits for them, let fashion photographers take photos for them, and participate in an experimental art project. This is really cool!
Due to the influence of coronavirus, Sephora, Ulta and other beauty brands closed their stores and transferred to the Internet.
The rise, decline and rebirth of e-commerce beauty products industry
The past few years have been very important for the beauty industry. According to the data of Statista, in 2017, the beauty sales of e-commerce in the United States increased by 1.6 billion dollars, while the beauty sales of physical stores decreased by about 168 million dollars.
2017 indicates how fast the industry will grow. In 2018, the global beauty products industry is estimated to have increased by 5.5% compared with the previous sales year. But how did this happen?
Convenience is considered the king of the retail world, but many other factors have also led to a surge in online beauty products sales. Let's take a look at some of them:
Beauty Box Subscription
One of the most innovative and exciting new content in the online beauty products industry is beauty box subscription. In exchange for a fixed monthly fee, brands such as Birchbox and Ipsy regularly send out a box of mysterious beauty products. This is to give customers the opportunity to try out products they may not buy themselves. The best thing about these beauty boxes is that the total value of the boxes often exceeds the monthly cost.
Influence of social media
Social media plays a very important role in beauty products shopping. Beauty brands such as Kylie Cosmetics and Huda Beauty have a large number of fans on social media platforms such as Instagram, Twitter and Facebook. Online popularity on social media is a powerful source of promoting these products. Surprisingly, the outbreak of coronavirus also proves the importance of online popularity in the beauty industry.
Unfortunately, in 2020, the sales of beauty products will slow down for the first time due to the pandemic. However, as consumers' shopping behavior has changed, the beauty products industry is returning to the game. It is estimated that by the end of 2020, the economic and social impact of 2019 coronavirus disease will be huge, and the beauty industry will experience rapid transformation in terms of purchase mode, channel activities and consumer demand.
As of the second quarter, online channels accounted for 70% of the market share.
New trend of e-commerce beauty products industry
Here, I list some emerging trends no less than the rebirth of the beauty industry:
Increasing demand for personal care products
Positive personal care products are increasing due to concerns about the spread of COVID-19. According to Covid-19 data of GlobalData, 43% of Australians, 74% of Chinese and 82% of Indians want brands to provide tips on personal health and happiness.
Skin care products with strong demand
As people's demand for self care products such as hand sanitizers and disinfectants continues to rise, the demand for skin care products is also high as a chain reaction. Concerns about the side effects of frequent use of hand sanitizers and disinfectants have led to an increase in this demand.
Beauty at home is the new normal
As people avoid going out for beauty, beauty brands seize this opportunity to expand their services at home. They provide electronic booking services, and customers can seek advice and services in a comfortable home.
Non contact packaging and distribution
As consumers become increasingly obsessed with hygiene, cleanliness and immunity, the current packaging mode of beauty products reduces the risk of pollution and provides a longer shelf life.
Therefore, if you plan to invest in this market segment, you must take all the above factors into account.
