Beauty is an industry that has always lagged behind, especially when it comes to ecommerce. With around 8% of worldwide beauty sales happening online in 2017, the industry is below the average of 10%.
Over the last few years, retailers and brands have upped their game and 2019 is currently looking brighter than ever. Here are the biggest trends that are reshaping e commerce beauty industry sales.
Ecommerce is analyzed in terms of clicks and conversions. It can’t rival retail stores. In the retail space, only about three websites visit out of 100 will successfully result in a sale. On smartphones and other devices, that conversion rate is lower.
For many ecommerce beauty stores, that is a huge problem. Luckily, the solution can be found in cart abandonment campaigns, retargeting, cohort analysis, and more.
Some retailers and brands understand that conversion is not the most important. Although cart abandonment can increase short-term conversion, they are a bit annoying and impact long-term loyalty.
While most websites feature banners with “Shop Now” mentions and display offers and prices everywhere, you will find more and more ecommerce beauty websites that look like galleries with large and beautiful images, discreet price tags, and bold statements.
Beauty subscription boxes are a huge hit. Since the launch of Birchbox, the demand for beauty boxes has skyrocketed. For a long time, subscription box service providers, worked together with beauty brands to allow potential customers to sample their products.
Today, established brands and retailers are using them as a sampling technique and an effective sales channel.
Subscriptions don’t take the form of boxes only. There are services like Dollar Shave Club and Amazon’s Subscribe & Save that allow you to save while purchasing.
All Skin Colors Matter
Women with dark skin have talked about the little consideration they get from mainstream brands and big names in the ecommerce beauty industry. The biggest stir-ip came two years ago with the launch of Fenty Beauty with the help of LVMH (French group). This new line of cosmetics features a makeup foundation that came in 40 different shades. Brands like Make Up For Ever has also offered products with many nuances but for criticized for emphasizing lighter tones and shades.
This move forced the beauty industry to acknowledge the demand for inclusive shades of foundations. Cosmetic companies adapted to include all types of skin – from the darkest to the lightest tones. Dior has followed Fenty’s example and widened the color range of their makeup foundation.
For most emerging ecommerce niches and categories, the Amazon marketplace has always had its finger on the pulse of current trends.
For years, Amazon has sold baby care and hygiene products as repeat sales via the program we mentioned earlier – Subscribe and Save. Since the launch of the program, they have added more personal care, cosmetics, and beauty products.
Today, bestsellers in the category include Maybelline eyeliner and L’Oreal mascara. Fragrances include names and brands like Chloe, Adidas, Axe, and others. Skincare includes Neutrogena, Dove, Garnier, Bioderma, and more. Even though the assortment might not be as extensive as you find at Sephora, the selection of brands is still impressive.
Ecommerce Pop-Up Stores
The concept of a pop-up store provides a real element to ecommerce. Marketplaces like Alibaba and Amazon have opened their pop-up stores to boost interaction between sellers and buyers.
The idea of bringing ecommerce to life is an effective marketing strategy that helps increase brand awareness and positioning by buyer’s curiosity. This can be achieved without spending money looking for the perfect location and decoration.
Millennial brands like Huda Beauty, Glossier, and The Ordinary started with ecommerce and accomplished huge popularity thanks to social media channels. They tend to open their pop-up stores once they have achieved a certain market recognition. The main activity at these stores is not selling but providing a real try-on experience, offering beauty tips of giving away free samples. The value added by having an ecommerce pop-up store is building the brand which also increases sales.
Social commerce is the newest trend that all brands are focusing on. It is a combination of social media and ecommerce.
According to one research, people spend two hours on social media every day. Experienced marketers see a huge potential in this. Most beauty brands are using social media to promote their products and push their sales. With the rise of beauty influencers and online product reviews, the potential of social commerce is unquestionable.
Augmented Reality and Artificial Intelligence
The new AI and AR are the future of the beauty ecommerce industry.
Machine learning technology advances itself by gathering data. Luxury beauty retailers and big-name brands have adopted this modern technology in different approaches. For example, IBM has been collaborating with Symrise to design the industry’s first perfume using Artificial Intelligence technology.
Once AI and big data step into the ring, there will be a more diverse selection. Consumers will feel more confident when buying a fragrance online.
In the cosmetics category, the use of Artificial Intelligence has created a revolution in products Beauty brands based on AI technology have gained market awareness. Lancome has introduced its custom-made foundation. The product is generated based on skin data which is analyzed by an algorithm to get the perfect matching shade and the right formula.
Also, the use of AR and VR in the beauty industry has increased in recent years. Big brands and large beauty stores are acquiring AR as part of their business strategy. For example, L’Oreal is using Modiface to improve the AR experience with their products and is teaming up with tech hubs like Founders Factory and Station F to nurture new startups in the ecommerce area.
What do you think about these trends? Are you ready to adopt one and see what is going to happen with your beauty business?
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