The global beauty industry generates roughly $500 billion per year in sales, accounting for millions of jobs. If you assume that a worldwide pandemic and dramatic economic shifts have affected this market, you’re right. However, the ways Covid-19 is changing the beauty industry may surprise you.
Covid-19 And The Lipstick Effect
If you’re familiar with the “Lipstick Effect” you know that the chairman of Estee Lauder observed lipstick and other cosmetic sales increase during the 2008 recession. Beauty companies tend to thrive during economic downturns, a phenomenon observed as far back as World War 2.
Studies of the psychology behind this behavior seem to indicate that women, in particular, prioritize their attractiveness in times of scarcity due to survival instincts.
Today, in the era of lockdowns, quarantines, and social distancing, we can also factor in focus on self-care and a need for DIY beauty options. Because the consumer’s desire for beauty, wellness, and luxury
products never diminish, this major market upheaval has simply shifted sales to other categories.
By some measures, brick and mortar spas, skincare retailers and clinics are seeing decreased traffic, just like all “non-essential” businesses forced to limit hours or service. However, online sales are booming thanks to resourceful adjustments. Beauty product and device manufacturers like Sylton are helping distributors innovate and diversify to meet the changing demands.
DIY Beauty- What Do WFH And Lockdowns Have To Do With Purchasing?
Long before realizing that Covid-19 was altering how we work and live, companies were already moving in the direction of remote work, flexible “work from home” schedules, and virtual meetings. The declaration of a pandemic accelerated these trends into high gear and people found themselves breaking free of their 9-5 routine.
Zoom meetings have ensured people still get regular facetime and want to look their best. For those who spend much of their day wearing a mask, the eyes, brows, hair, and everything else have gained attention.
A desire to present well while favorite salons are closed helped popularize YouTube DIY videos in 2020. Some men and women are learning out of sheer necessity how to do everything from brow-shaping to tooth whitening from the comfort of their homes. Whether the driver is cost savings or a lack of options, customers find a way to get the products and treatments that make them feel good.
The Digital Beauty Sales Shift
Online sales were slowly trending up in recent years and have exploded in place of in-person shopping. The anticipation of waiting for web purchases to arrive is a rather new shared experience among millions stuck indoors. Other simple pleasures such as self-care days keep spirits up in trying times.
Will the new normal remain? 2020 was one of the worst years for industry and commerce across the board, but we know that beauty, wellness, and luxury products have a way of taking hits and carrying on.
Luxury hand soap sales are up in France, an astounding 800%, and Europe’s biggest online lifestyle and fashion marketplace, Zalando, reported growth in pampering categories like candles, aromatherapy, skin, and hair products.
Amazon handles most e-commerce in the USA, and they report hair, bath, and body product numbers dramatically higher this year.
For a significant percentage of the population, beauty is closely tied to well-being and the Lipstick Factor suggests customers will continue indulging this need affordably during stressful times. For this reason, the beauty industry always has cause for optimism and stays agile through evaluating practices and partnering with aesthetic business innovators.
Beyond Covid- Planning for A Thriving Beauty Industry
We believe that difficult times can inspire valuable, lasting improvements. The COVID-19 crisis may have altered our industry in lasting ways, but the great news is that you can get on track with where we’re headed.
Digital communication, marketing, and sales are increasingly central to business. More people are spending time conducting their own, detailed product research and comparing information found across the net. Global borders are less of a barrier, so you will benefit from mastering direct-to-consumer marketing, branding, and customer care. Social-media in-app shopping springs from dynamic engagement and an effortless user experience. Beauty-industry leaders who thrive through the remainder of this pandemic and beyond have maximized digital channels to grab all the new customers taking beauty into their own hands. Are you making the most of digital communication and services through virtual consultations, visually engaging product advertising, and a personalized customer experience?
Are you primed to keep up with rapidly shifting beauty product demands? One of the challenges beauty distributors face is reallocating their resources and supply to meet an influx of online demand. The product innovation pipeline is now lightning fast- with brands having their genesis and arriving on doorsteps in less than a month. To keep up with shrinking timelines and increased pressure, providers need to form strong collaborations with beauty product manufacturers specialized in adaptation and product innovation.
Sylton, and our parent company InnoFaith beauty sciences, offer full-custom products. We cooperate closely with you to meet rapidly changing needs and help fortify your presence in the market.
Sylton distributors benefit from our vision and experience around the world. Contact us to chat.