The beauty industry is known for its dynamic, ever-changing nature. The COVID-19 pandemic had shocked the worldwide beauty sector (which includes skin care, color cosmetics, hair care, perfumes, and personal care). The first quarter of 2020 sales was disappointing, and many stores were closed.
Before the COVID-19 crisis, in-store shopping accounted for up to 85 percent of beauty product purchases in most major beauty-industry markets, with some variance by subcategory. Even the most tech-savvy American millennials and Gen Zers (those born between 1980 and 1996) made nearly 60% of their purchases in stores. Due to the closure of premium beauty-product outlets as a result of COVID-19, about 30% of the beauty-industry market was closed down.
Industries ranging from fitness to cosmetics were suddenly navigating a “new normal” in how their customers and clients interacted with their products. For the beauty business, this shift in customer behavior meant that online purchasing increased, but overall spending did not decline significantly. Many brands saw skin care and other personal care goods outsell cosmetics and makeup, although lost sales on one product typically meant increased sales on another. With more firms shifting their focus to digital, online sales are expected to account for more than 23% of beauty spending by the end of 2022.
According to Strategy Here, a Chicago Qualitative Research Agency, some ways the beauty industry has changed as a result of the Covid-19 outbreak are as follows –
- Online sales have increased – Not only has the beauty industry had to adopt a more digital approach in the last year. From food to fitness, all industries have been compelled to embrace eCommerce in novel and disruptive ways. L'Oreal Paris has created a virtual makeup collection via Instagram Stories and Snapchat filters, while Function of Beauty is prospering with online quizzes that allow you to customize your haircare and skincare.
- Close Partnerships with Retailers – We've also witnessed an increase in branded content on retailer blogs and social media channels over the last year. These intimate cooperation have gone a step further in tempting and enlightening customers, with businesses such as John Lewis and The Fragrance Shop hosting such conversion-driving content. Manufacturers can eliminate a step in the sales funnel by now recognizing merchants' blogs and social platforms as another type of media.
- Skincare brands get a boost – While color cosmetics remain the largest beauty category, sales dropped due to multiple lockdowns during the pandemic. However, skincare sales increased in 2020, with L'Oreal's Active Cosmetics segment reporting an 18.9% increase in revenue over 2019. Blue light-blocking skincare, in particular, has sparked much attention, as it is intended to keep pores protected in the face of increased screen usage.
The pandemic caused a shift in how customers interacted with beauty goods for the beauty industry. However, even during the pandemic, consumer trends according to Strategy Here, a Chicago Qualitative Research Agency showed that beauty and personal care goods remain an accessible luxury that many people are prepared to indulge in even in times of economic difficulty. Regardless, beauty and personal care enterprises will continue to do well to adapt to changing customer wants and trends to differentiate themselves from the competition at a time when many people purchase from home.
