The beauty industry is not exempt from digital disruption. According to the latest PWC beauty trend analysis, 60 per cent of consumers worldwide have purchased a health and beauty product online at least once in the past year.
E-commerce for the beauty sector has doubled from 2013 to 2017 (from € 17 billion to € 33 billion). ECommerce companies such as Amazon and Alibaba have a 65 per cent share of the world market; however, in China, the winner is Tmall with 95 per cent of the Chinese market.
E-commerce applications in the beauty sector have implemented online advisory initiatives using algorithms and virtual communities such as blogs and vloggers, to allow consumers to make purchasing decisions that benefit the store. The consumers are able to know the reviews of various products such as people before making purchase, they tend to read goop eye cream reviews.
According to the report, the main growth markets for the beauty industry will be the United States, China, India and the United Arab Emirates, in which it is estimated that it will reach 92 billion euros in 2022.
In addition to the rapid growth of electronic commerce, other technologies such as Augmented and Virtual Reality, as well as voice recognition, are future trends for the sector, which will be active personal assistants for the choice of skincare and makeup products.
Market features
Despite all the crises, unstable political situation and other important matters, cosmetics are and will always be on sale. Women want to be beautiful and attract the attention of men – this must be remembered. This means that they will find money for your goods in any case. I personally know many women who will eat doshirak but will not leave the house without expensive mascara.
So, cosmetics and perfumery products are in high consumer demand such as people search for the best salicylic acid face wash. Plus, they have a high turnover. Even if you make a minimum mark-up, you will remain in the black and get your profit precisely due to the rapid turnover of goods.
Main directions
As the name suggests, these are cosmetics and perfumes. Cosmetics are divided into care products: creams, masks, shampoos and balms, decorative cosmetics – lipsticks, mascaras, powders. Perfumery – elite brands, brands that are simpler or even replicas of famous fragrances.
The target audience
Of course, this is female: girls, girls, women, and even grandmothers. This is no joke: stylish ladies of the age also want to be beautiful. It is necessary to take into account the peculiarities of the psychology of female target audience. Firstly, they often make purchases spontaneously: simply because they liked the design of the jar, or a friend talked about a miracle cure: how not to buy. Secondly, when choosing a product, women are driven mainly by emotions, not logic. This means that emphasis should be placed on the emotional description of the goods. Third, women tend to listen to the opinions of others. A recommendation from a popular beauty blogger or screen star can tip the scales towards a purchase.
