According to data from the National Association of Perfumery and Cosmetics, this sector’s sales fell by 10% during the pandemic. However, within e-commerce, this type of products increased their sales by 36%, reaching more than 8 million users by 2020. The ecommerce trend in this sector is upward. This data is not very shocking because in Spain the ecommerce sector grew exponentially and logistics companies had to work 24/7 to manage all these operations.
But like all sectors nowadays, and more so in the way products are sold, offered and promoted, they are undergoing very important sociological changes. Do you know what trends are currently influencing the cosmetics and beauty sector?
Trends in the Cosmetics and Beauty sector
- The exponential growth of the sector is being greatly affected by the digitalization of the industry. Cosmetic companies are deciding to bet more on digital advertising and social media as opposed to traditional promotions such as television and print.
- The size of the cosmetics and beauty sector is estimated to reach the turnover figure of $750 billion by 2024. India is the country that is expected to be at the forefront in terms of market growth, doubling the growth of Europe and the US combined.
- The importance of being present on social media has become indispensable. Any company in the cosmetics and beauty industry must be present on all available social networks. Nowadays, many brands work with influencers or opinion leaders who promote and test their products. Similarly, on the Instagram platform there are already online stores where you can buy their products without the need to enter their website.
- Digitalization and the use of big data to get to know users is fundamental. Cosmetic companies invest heavily in knowing what trends their customers are demanding. Many companies already have applications with artificial intelligence that allow you to try their products with virtual reality without leaving your home. This way you can try hair dyes, makeup and nail polish, for example, without having to get up from the couch. This is an added value that is almost taken for granted by the millennial generation, who are internet natives.
- Sustainability is at the heart of consumer concerns. Although the determining factor in almost all purchases is price, speed of purchase or trust in a brand, the need to create and consume products that are local and sustainable for both the planet and our own bodies is becoming increasingly important. The already famous natural cosmetics is a sector that continues to grow steadily, and almost no customer consumes polluting cosmetics by choice.
- The rise of Subscription Boxes. According to data from McKinsey, the trend in the cosmetics and beauty sector under subscription will grow by 72% throughout 2022. There are some brands that have already started using these subscription models. Companies using this method send their consumers trial products at a fairly small price to boost their brand engagement and loyalty.
- Logistics companies must be aware of these changes in sales and consumer trends as they must manage their ecommerce sales well and have a good reverse logistics service to process all returns through the different channels.
Do you want to know our services for ecommerce and the cosmetics and beauty sector? Do you want to optimize your logistics and make it sustainable?