Why the Beauty Industry Sees Growth in the E-Commerce Market

The beauty industry market has been changing over the years. Not just in the way business is conducted but also in the ways items are sold and distributed. One of those changes bringing disruption to the industry is the continual growth in the e-commerce market. Today in the U.S. alone almost one in three dollars spent on beauty items are online, according to Neilsen’s 2018 report, “The Future of Beauty.” One may ask why, but in a hyperconnected world, it only makes sense that the beauty industry is going digital and seeing results.

Constant Connectivity

Nowadays almost everyone has a mobile device that they can use to make purchases at any time and anywhere a consumer chooses, making it faster and easier to reorder essentials and research new products at the point of discovery. Given this constant connectivity and information consumers have at their fingertips, online spending on beauty products has seen a more significant and quicker increase than other packaged goods with more than $12 billion spent in the U.S. over the last year. This number represents 30% of dollars being brought in through online channels which are up from 24% just a year ago (Nielsen, 2018).

Social Media and Content

As more consumers have started to make the change over to the e-commerce market, social networks have a significant influence. Platforms like Facebook and Instagram are great research tools and engage with, capture the attention of, and draw in new and existing customers today by providing inspiration and motivation through unique content, promotional posts, beauty influencers, and brand posts. The informative content makes going from viewing online content to online shopping quicker and simpler for customers as more of them are spending time online.

Consumers want a Digital Experience

The digital experience brings convenience and personalization to consumer shopping. With ongoing technological advances, consumers can get the same experience shopping online, if not better, as they would in a physical store. Online videos, product information, tutorials, reviews, product recommendations, and being able to try on different looks or products in some instances virtually leads to better product knowledge and confidence in buying decisions. This multimedia makes it simpler and less time consuming for customers to shop online.

The growth that the beauty industry has been encountering in the e-commerce market is not expected to slow down but to continue growing for years as more and more consumers seek a fast and convenient shopping experience. Visit Nectar to see how Coleman/Harrison is utilizing the e-commerce market to improve the shopping experience for its customers.