During the Pandemic, the cosmetic industry faced a lot of challenges. Here are some of them:
The beauty industry is one that relies heavily on cultural shifts and events. So it is not surprising that it was affected by the Pandemic.
Changes in consumer behavior
The Pandemic had a profound impact on consumer behavior. These changes affected how consumers shop and how they choose products for their homes. It also caused an increase in loyalty shake-ups, particularly among younger consumers who are more concerned with values and organic products.
According to research, consumers tend to be more utilitarian when they are coping with an emergency. They will often purchase products that are more practical than hedonic, such as disinfectants, masks, and health foods. This trend is especially pronounced among women.
In addition, the Pandemic has prompted consumers to save money more than they would otherwise. This is because the pandemic has prevented people from returning to work, reducing their household income. It has also affected their emotions and cognitions by instilling fear and anxiety into them, prompting them to save preventively.
Furthermore, many consumers are buying private labels for their products. This is because they have become less loyal to their favorite brands.
As a result, merchants need to adapt their business models to accommodate these changes in consumer behavior. This paper explores how consumer purchase behavior has changed during the Pandemic and how it affects the business model design of consumer services companies.
This study uses a survey questionnaire to gather data from a sample of 1,742 individuals. It includes questions about their occupation, current employment status, and family earning status. In addition, the respondents are asked to rate their level of concern about COVID-19 on a scale of 1 to 10.
After the survey was completed, we analyzed the results to understand the relationship between consumer purchase behavior changes and the efficiency-centered business model design of consumer services firms. The results indicate that the relationship between these two variables is strong and robust.
The researchers suggest that the efficiency-centered business model design of consumer service firms should be changed to accommodate the changes in consumer purchase behavior during the Pandemic. This will allow companies to avoid the high costs associated with a slow-down in sales.
The researchers conducted a secondary analysis of the data to identify the most significant changes in consumers’ purchasing behaviors during the Pandemic. They found that the number of respondents who bought a variety of different types of products during the Pandemic increased significantly. They also discovered that many consumers purchased private label tissue products during the Pandemic.
Increased ecommerce
As a result of the Pandemic, cosmetic brands that are reliant on offline sales experienced an increase in ecommerce. These trends are helping brands to boost their online presence and build brand loyalty among consumers.
The emergence of social media as a key shopping channel has also led to an increase in ecommerce sales. According to Statista, revenue from social commerce is expected to reach $80 billion by 2025. This is a significant number for beauty brands and it means that they must focus on building a strong presence on these platforms.
In addition to boosting their ecommerce presence, cosmetic brands are also looking to embrace new technologies that will help them to better interact with their customers. These include virtual try-on tools, augmented reality (AR) technology, and personalized experiences.
For instance, MAC Cosmetics is using AR technology to enable shoppers to virtually try on eyeshadow shades before purchasing. The company says that this has increased engagement by 300% since the start of the lockdown and has boosted conversion rates by more than fourfold.
Meanwhile, other brands are creating immersive digital shopping experiences that mimic the physical store experience. For example, Pinterest’s augmented reality tool, Try On, helps users to virtually try on makeup from Lancome, NYX Cosmetics, and Urban Decay. The company says this has helped boost its sales by more than six million dollars and has generated more than 30 million try-ons in the first two weeks of using these tools.
As a result, many beauty brands are investing in VR and AR technology to create a more immersive shopping experience for their customers. These technologies are designed to resemble the real world and offer a more authentic shopping experience, which can help improve customer satisfaction and lower return rates.
Another trend that beauty brands are adopting is sustainable practices. These trends are aimed at ensuring that all ingredients are ethically sourced and produced in an environmentally friendly manner. These strategies have become a must for the cosmetic industry as consumers increasingly demand that their products be environmentally conscious and cruelty-free.
Lockdowns
During the Pandemic, many cosmetic stores had to shut their doors for months on end. This forced customers to rely on DIY treatments or online alternatives. Despite these challenges, the cosmetic industry is still recovering and has a bright future ahead of it.
Beauty brands were able to adapt and thrive during lockdowns by providing virtual try-on services, such as MAC’s Virtual Try-On function. These features, which allow buyers to test out different makeup hues without leaving their home, have seen a threefold increase in user activity since the Pandemic began.
In addition to allowing customers to try products at home, these digital services also help companies increase their visibility on third-party platforms to reach a larger audience. This trend is likely to continue in the future, especially as consumers turn to online shopping and ecommerce more often.
The industry is also responding to a new wave of consumers who are interested in sustainability and supply chain transparency, which has been on the rise since the pandemic. Consumers want to know the ingredients that go into their beauty products and how they’re manufactured, so it’s crucial that brands take the necessary steps to ensure their operations are environmentally friendly and ethically sourced.
Additionally, consumers are becoming more aware of the importance of healthy diets and self-care. According to research by Lycored, a carotenoid producer for ingestible skincare, over half of US respondents said they had spent more time thinking about how their diet and nutrition affected their beauty.
Overall, the cosmetic industry saw an increased focus on health and wellness in the wake of the Pandemic. This is an excellent opportunity for beauty businesses to lead the way on sustainability and supply chain transparency.
While the cosmetic industry is still recovering from the Pandemic, it’s important for brands to stay ahead of the curve with innovative digital solutions that will enhance their brand reputation and customer safety. For example, leveraging new technological solutions to effectively monitor Intellectual Property infringements at the source will come in handy as new marketplaces and shopping features pop up.
New trends
New trends emerged in the cosmetic industry during the Pandemic, signaling an increased focus on natural ingredients, sustainability and transparency. These trends can affect the entire beauty sector, from the way consumers interact with their products to how they communicate with companies.
Personalized products:
A major shift in the makeup and beauty market has been a rise in consumers’ demand for personalized experiences. This is driven by the need for a more personal connection to brands, and can help consumers feel more confident about purchasing their favorite products.
In particular, the trend of personalized cosmetics has become particularly popular in Japan. Kose Singapore, for instance, opened a clickable store on its website that allowed consumers to explore the brand’s new skincare range, while also learning about the science behind it.
Light, barely-there make-up:
One of the most notable cosmetic trends that has emerged during the Pandemic is a move away from full coverage to lighter, more minimal makeup. In particular, consumers are looking for light make-up that can resist humidity and also provide some skin care benefits.
The trend is likely to stay strong post-pandemic, especially in warm equatorial climates. It will be crucial for businesses to offer a wide variety of textures and colors that appeal to all skin types, including those with sensitive skin.
Holistic wellness:
Another emerging trend in the cosmetics market is an increased emphasis on holistic health and wellbeing. This includes the ability for products to impact both mood and skin.
This is a result of rising consumer concern over mental health and its impact on the body. People are looking for “deep-seated” holistic wellbeing that can help them deal with stress and anxiety, explains Ziv, who believes this trend will grow over time.
Organic products:
As new-age consumers become more aware of the chemicals that are found in their beauty products, they are increasingly looking for brands that use organic ingredients and are cruelty-free. This can be a huge opportunity for companies that use eco-friendly ingredients and sustainable manufacturing processes.
