The Future of Beauty Retail in the Post-Covid World

The global beauty industry generates $500 billion in sales a year and e-commerce is now a part of our daily lives. In most major beauty-industry markets, in-store shopping accounted for up to 85 percent of beauty-product purchases prior to the COVID-19 crisis. With the closure of premium beauty-product outlets, approximately 30 percent of the beauty-industry market was shut down. Restrictions on physical movement have forced a shift in spend from offline to online platforms and consumers are not expected to move away from online channels, as they’ve experienced advantages such as greater accessibility, convenience and lower prices.

“The rapid changes we have witnessed in the beauty sector are here to stay.” says Vasundhara Patni, founder of cosmetics brand, Kiro Beauty. “To remain competitive, beauty brands across the world must capture new consumer expectations and behaviours, and respond to market’s evolution. Success in the beauty industry is more than just high-quality products. It's essential for brands and retailers to deliver a useful, effective, and seamless customer experience, supported by smart omnichannel strategies and disruptive AI/AR solutions.”

The growth in the beauty industry is likely to accelerate with direct-to-consumer e-commerce, amplification of brand websites and shoppable social media platforms. Beauty brands will need to prioritize digital channels to capture and convert the attention of existing and new customers. The use of artificial intelligence for testing, discovery, and customization will need to accelerate as concerns about safety and hygiene disrupt product testing and in-person consultations. 

Today, beauty customers are changing their spending habits, moving towards products that allow them to mimic the in-store experience at home. The rise of influencer marketing and user-generated content strategies puts consumers at the forefront from promotion to market research for new products. In fact, the Kiro website enables consumers to select their skin tone for shade recommendations, where products that match your shade card are highlighted throughout the website. Shopping for products based on the ingredient is another key highlight of the Kiro Beauty online shopping experience. The shipping timeline for all products is within three to five business days, while enabling a commendable distribution network that reaches all zip codes in India.