The beauty industry is regarded as one of those e-commerce categories which is brimming with a loyal customer base. An average beauty and personal luxury customer ceaselessly stick to a brand of their choice once they find the perfect solution for their needs. Taking predictions into account, the beauty industry is valued to surpass $750 billion in this decade from the prevailing $523B market value in 2021. This owes to the right-minded usage of e-commerce and social media over the years and hereby makes the consumers anticipate a wilful product offering from their favorite brands in the future.
Role of E-Commerce in the Beauty Industry
The beauty industry has a widespread presence in the e-commerce landscape and thus, the role of eCommerce encircles some of the key features that act as a direct advantage for businesses. To talk about some of the most predominant ones, there is -
• Access to Customer Data
Beauty brand owners and marketers across the globe highly prioritize data for their customer targeting and product development. They make judicious use of the customer intel such as spending habits, expense cap, frequency, demographics, product preferences, and other facets of the like. This information is generated through regular onboarding campaigns, market surveys, past records, and directed customer questionnaires by beauty brands that are leaning towards the ambition of providing highly customised product offerings. Product personalisation by virtue has the advantage of reducing the number of purchase returns as well. Thus, making customer insights and consumer-related data the hot cakes of the industry.
• Enabler of Technical Literacy
The beauty industry has some of the most creative implementations of emerging technologies. When it comes to the user experience on the e-commerce sites of beauty brands, features of Augmented Reality (A.R) has been integrated within the buying process. This makes the user grow a fondness for the brand’s visionary interface and thus accustoms them to a sophisticated piece of technology that shall become prevalent across other categories of E-tailing. It also happens to be one of the easiest ways to acquire customer data like product choices, skin texture, facial contour mapping, and more.
It goes without saying, that the pandemic of 2020 has dramatically changed buying behavior across the world. But even before the outbreak, cosmetic consumers would prefer their local drugstore and an in-store experience of trying out the sample tester of the product to see how it pairs with other samples. Thanks to A.R. integrations among the likes of – ‘Olay’s Skin Advisor’ and ‘Maybelline’s Makeup Virtual Try-on tool, brands have been able to create a safe and embodied experience of a cosmetic store on their e-commerce pages.
• Facilitate Revenue Boost
From local businesses to multinational beauty brands, the scope for catering to a large and global audience is facilitated by the forever-growing reach of eCommerce. Beauty businesses gear towards international markets without the need for acquiring local property overseas or hiring an on-field team of managers to delegate who would operate in partial autonomy. The user-friendliness of an e-commerce regime to span globally leads to the most predominant result of expansion, which is a monumental boost in revenue.
Role of Social Media in the Beauty Industry
Social media as a tool is known for cultivating a brand’s community. It has not only acted as a vehicle to communicate a brand’s message and product offering but also captured the essence of the complete beauty industry. The role of social media as a platform of idea exchange and connectivity, gave shape to a conscious notion of embracing your best self and at the same time showcasing it to your world. The beauty industry remarks upon the idea that social media is used by people to draw, impart and amplify inspiration about self-expression. Thus, the following features make beauty products on social media pervasive.
• Access to a Refined Target Market
Social media like Instagram, Tik-Tok, and YouTube have dedicated algorithms that feed their users with the content they are most likely to subscribe to by mapping out their likes and preferences. The same goes for article-based content delivery sites and news pages that provide the wide array of choices for the user to pick from. This sorting activity of cohorts feeds the beauty and cosmetic consumers with the latest product offerings, brand messages, company updates, and community dialogue.
• Social Media for Social Cause
Beauty brands have responsibly leveraged the vast outreach of social media to showcase their support of LGBTQ+ communities by associating with influential figures and have their opinions scattered to the four winds. This has helped brands position themselves as uplifting, unprejudiced, and proudly progressive among their audiences. Apart from this, beauty brands in the past have addressed social matters, one of them being about women who are not at peace with their skin conditions which had a colossal impact on self-confidence and self-acceptance among all ages. Dove shined through this cause by dedicating an Instagram community that showed support and inspiration for those living with all kinds of skin conditions.
• Bring a Product to life
Social media and beauty influencers are a breed of content creators who can advocate the purchase of a brand’s product by demonstration. This helps the average consumer of a beauty brand see the product work on a personality they look up to in real-time and therefore make a sound purchasing decision for the product. This influencer outreach has been one of the easiest ways to build brand awareness and improve the chances of discoverability among masses that do not associate with beauty brands as a consumer but are enticed by the brand identity.
To sum it all, e-commerce and social media are a robust pillar and a land full of potent soil respectively. As a pillar, the e-commerce space keeps the beauty industry at the pinnacle of its game by helping it adapt and grow with technological advancements, while social media as a potent soil, used with meticulous strategies and care, would bring the brand’s goals to fruition.