According to Grand View Research, the Cosmetics market size was valued at USD 262.21 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.2 percent from 2023 to 2030. Needless to say, the Beauty eCommerce industry has witnessed tremendous growth in recent years. What was once confined to physical stores has now taken a firm hold in the digital landscape.
To help brands excel in the Beauty sector, MikMak's Principal Account Manager, Kayla Darcey, hosted a webinar featuring Carla El Gawly, Director of Strategic Retail EMEA at Salsify. These industry experts delved into strategies and best practices for Beauty brands to maximize eCommerce sales during the holiday season.
eCommerce accounts for 24 percent of retail sales in the UK and 20 percent in the US environment
Today, consumers no longer need to rely solely on stores for Beauty shopping. Instead, they can expand their Beauty horizons from the comfort of their own homes. Millions of digital natives are now turning to tutorials and reviews on Instagram and YouTube to stay up to date on the latest trends in the Beauty world.
Consumers report that product quality is the number one element that drives brand loyalty
Carla El Gawly and Kayla Darcey shared insights into holiday consumer behavior trends based on research conducted by PwC and Salsify:
- 90 percent of consumers are adopting cost-saving behaviors
- 51 percent of consumers are prioritizing product quality
- 85 percent of consumers consider delivery speed and flexibility as crucial factors in their shopping decisions
- 63 percent of consumers prefer private labels over brands for lower prices
- 54 percent of shoppers won't buy a product online if it has negative reviews
As per The Conscious Insider, the presence of natural ingredients (40.2 percent), respect for the environment (17.6 percent), and the use of recyclable packaging (15.8 percent) are the key factors for consumers in their purchasing decisions. The market for natural Beauty has increased over the past few years, as many users voice concerns about synthetic ingredients and harmful chemicals in their products. Statista states that over 80 percent of consumers either already buy or want to start buying all-natural skincare products. Consumers now prioritize specific ingredients over brand names, creating an opportunity for brands to focus on ingredient-first content.
Understanding where consumers seek information is also crucial for brands to boost eCommerce sales. Research indicates that 67 percent of Beauty shoppers rely on social media influencers for product information, 55 percent turn to Beauty professionals, and 34 percent seek guidance from public figures or celebrities. The modern consumer shopping journey includes multiple channels throughout the decision-making process. Salsify's Consumer Research Report provides insightful data, indicating that 68 percent of shoppers prefer purchasing either in-store or on a retail website.
When it comes to the retail landscape, mass merchants emerge as the dominant players. MikMak’s 2023 Beauty eCommerce Benchmarks and Insights, reveal that Amazon takes the lead, followed by Walmart. In the UK, specialized retailers like Boots have experienced a significant increase in market share, while Amazon remains a popular second choice. So, how do you make the most of every shopping occasion? Here's where MikMak comes in. With our cutting-edge platform, you gain access to real-time insights on your consumers' online behavior. By understanding your shoppers on a granular level, you can enhance your marketing campaigns and boost purchase consideration. MikMak's powerful analytics tools offer invaluable data on consumer preferences and market trends. Armed with this information, you can create personalized marketing strategies, optimize your product range, and strengthen your brand's connection with your target audience.
Instagram ranks as the leading social channel for Beauty shoppers in the US, Facebook takes the top spot in the UK
Analyzing holiday shopping behavior is crucial for eCommerce success. The MikMak Shopping Index reveals that holiday shopping for Beauty products starts early in November and sees another peak in early January. Thursday at 5 P.M. is the best time to engage Beauty consumers, while weekends attract the highest in-market traffic. Additionally, Beauty shoppers typically have 6-7 items in their carts per shopping trip.
To boost your holiday sales in 2023, it is essential to prioritize effective eCommerce ads. Here are the key elements you should focus on:
- Grab your audience's attention with bold and eye-catching creatives
- Showcase your products prominently in your ads
- Make it clear what action you want your audience to take
- Provide a hassle-free shopping experience by offering flexible checkout options
- Explore innovative ways to market your products like incorporating QR codes into your ads or leveraging OTT platforms to reach your target audience
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Brands can take inspiration from COVERGIRL's success in making viral influencer content shoppable on TikTok. By leveraging MikMak's Platform, COVERGIRL achieved a 5.4x higher Purchase Intent Rate than the category benchmark and outperformed Instagram by 38 percent.
58 percent of shoppers are likely to abandon a product page if it lacks sufficient information
Investing in product content is crucial for eCommerce success. It involves creating a diverse range of content, tailoring it for specific channels, maintaining accurate and up-to-date information, and optimizing its positioning to engage consumers on the Product Detail Page (PDP). With the integration between MikMak and Salsify, brands can seamlessly manage and synchronize their product data across different devices throughout the consumer's buying journey. This direct integration ensures optimal management and automatic synchronization of all product data on the MikMak Platform, providing a seamless and cohesive experience for consumers across all touchpoints.
Cracking the code to holiday eCommerce success in the Beauty sector requires understanding consumer trends, investing in content, and leveraging tools like MikMak and Salsify. By following these strategies and utilizing the insights provided, brands can drive sales and thrive in the competitive holiday season. To delve deeper into Beauty consumer behavior, watch the entire webinar, Cracking the Code to Holiday eCommerce Success: Insights from the Beauty Sector.
