VIRTUAL STORES RETAIL
I
t might be an understatement to say that beauty brands had to get creative when the pandemic hit. Shops were shuttered, supply chains were blocked from here to Timbuktu and an appetite for cosmetics was losing its lustre.
During the Western world’s peak of the virus, quarterly reports from the likes of Estée Lauder Companies and L’Oréal made for difficult reading. L’Oréal’s Luxe Division – which includes Urban Decay, It Cosmetics and Giorgio Armani Beauty – saw a 16% nosedive in sales in the first half year, while make-up sales were down by 62% in Q2 for the Lauder dynasty.
And of these sub-sectors, it was the lip care category that suffered the most. As face masks became a permanent feature of shoppers’ wardrobes, eye products took over as a point of expression for experimentation. Instead of a popping lip look, customers were opting for a bold eye.
But, while others were just managing to survive, there were winning categories, which might be another understatement; some were not just winning, they were coining it in. Subscription box brand Roccabox’s revenues were up 500% and Ciaté London reported a staggering 900% growth as at-home manicures became customers’ favourite pastime during lockdown number one. And this winning streak has also been seen in e-commerce. Amazon’s Jeff Bezos watched his wealth appreciate from US$74bn in March 2020 to an eye watering $200bn in 2021, according to Forbes.
If a $130bn increase in wealth does not paint a picture for the rise of online shopping during the pandemic, it’s hard to know what will. Bezos’ success was driven highly by country-wide lockdowns with un-entertained consumers looking for a new pair of pyjama bottoms to take them through the months of imprisonment. And, because of this, e-retail sales jumped 4.4% to 18% of all retail sales worldwide, according to Statista – that’s four times the acceleration of sales from 2018 to 2019. “We are emerging from the pandemic with a very different retail landscape to when we went into lockdown initially and the market is quickly evolving,” says Emma Fishwick, Account Manager at NPD UK Beauty.
cosmeticsbusiness.com
“Unfortunately, there have been casualties along the way as we have witnessed one of our hero department stores closing its doors and going into administration.
“In contrast, we have witnessed the introduction of new prestige beauty concepts in the market such as H Beauty and the Next beauty and home stores opening their doors. Prestige beauty is an emotive, feel good purchase which lends itself to trial and the experiential, which is why we believe there will always be a place for bricks-and-mortar in beauty.” Again, where there’s a loser there’s a winner.
A PLACE FOR SOCIAL SELLING? Brands have had new options of selling to play with in recent years; social selling has been on the up as new technologies develop and make adapting the developments easier for brands. Facebook has also finally brought its competitor to the table – it’s behind Instagram and Pinterest, but has made its way nevertheless. And it’s making progress in the space. Fresh off the press is that Facebook has introduced Live Shopping Fridays, which will be held every week until 16 July and which allow shoppers to buy beauty and fashion products in real time. And this new type of selling has proved a popular choice. A survey by Cosmetics Business found that 65% of customers confined to the walls of their homes have bought a product through social media; however, just over half said that the
65%
of customers confined to the walls of their homes have bought a product through social media
Source: Cosmetics Business
checkout process is less enjoyable and that they would prefer to shop via a brand’s website if they had the choice.
So, beauty aficionados will have to wait a little longer until social selling straps itself in as the leader in the rollercoaster ride that is shopping online – but there’s a new checkout process that is making the technology around social selling look like child’s play.
REALITY GETS A VIRTUAL MAKEOVER Virtual shopping arenas have mushroomed across
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