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OVERVIEW


and registering growth of 24.9% according to Euromonitor International, a significant percentage of shoppers are expected to continue shopping online. Matt Maxwell, Strategic Insight Director at Kantar, says: “With 40% of UK consumers (Kantar Covid-19 Barometer) saying they are likely to stick with the shift they’ve made to online it’s likely this trend is here to stay whether we like it or not. While we certainly expect to see shares of the physical stores improve and confidence grow as restrictions relax, sites like Feelunique, Lookfantastic and Cult Beauty have all managed to make impressive gains over the past year through attracting new shoppers who will likely remain shopping with them in the future.”


Before the pandemic, the beauty category relied heavily on in-store purchases, with 90% of Gen Z consumers buying their beauty products in a bricks-and-mortar shop according to Piper Jaffray’s Teen Survey in 2019. Global data from AS Watson concurred: it found that Gen Z prefers shopping for beauty in-store, with 99% shopping offline. Michelle Smith, Executive Business Director at global brand and retail design consultancy Landor & Fitch, says that this far exceeds any other category and adds: “We can expect a strong return to physical shopping and experiences, especially in highly sensorial categories like beauty.”


Sticking to clicking


At the same time, given the enormous shift to online shopping that the industry has seen over the past year, with global beauty and personal care e-commerce sales totalling $63.8bn in 2020


EUROPE: PRESTIGE BEAUTY RETAIL, VALUE & GROWTH, 2020


Over 10,000 people took part in the John Lewis x Charlotte Tilbury beauty masterclass, breaking the Guiness World Record title for the most tickets booked for an online make-up tutorial


Amazon and eBay have also now managed to grow their share of beauty to over 8%. Maxwell says: “They are likely to continue to focus on categories like beauty in the future as an avenue for growth, given that it’s one area that Amazon currently undertrades, compared to other categories like electricals, books, toys etc.” Multichannel retailers have also benefited from the boom. For example, at John Lewis, online now accounts for 60-70% of sales compared to 40% before the pandemic and Megan Mosley, Beauty Business Manager at John Lewis, tells Cosmetics Business that the


FORECAST TOP 5 BEAUTY E-COMMERCE MARKETS, 2022


$20.7bn +9.8 US $3.3bn +6.9 UK


SOUTH KOREA $2.2bn +3.9


$28.6bn +11.5 CHINA $4.3bn +8.2 JAPAN


Source: The NPD Group Bricks-and-mortar


y7,728m -30


E-commerce y2,326m +45


y10,053m -21


Total Forecast year-on-year growth 2021-2022. Source: Euromonitor International


cosmeticsbusiness.com


May 2021 cosmetics business 3


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