The Covid-19 crisis has shocked the whole world. In the world of business, some reached the pinnacle of success while others faced extinction. The global beauty industry also witnessed the rage of this crisis. Many companies switched to producing sanitizers as a means to remain operative during this hard time. The leaders were coming up with new ideas to help the companies survive the bad days.
Now, the scenario is changing, and the protocols are not so stringent. The sales pattern in the beauty industry is also changing. At the beginning of 2019, there was a drop in sales by 80%. But later in the first quarter of 2020, it saw only a dip by only 20%. So, you can imagine how fast it bounced back. The beauty industry has a reputation for being resilient to any crisis in the past. Let’s see how it dealt with the crisis of the pandemic.
Saivian Eric Dalius talks of the various ways in which the sales of the beauty industry changed
- There was a stark rise in the online sales of the products. So, the beauty companies that already possessed an inventory with shipment options gathered a massive profit by selling their products online.
- Sales at brick-and-mortar retailer shops are yet to experience footfalls. Though they have opened their shops for the people to have a first-hand experience of the cosmetics they would be purchasing, people are still afraid to step out and embrace the new normal. So, the physical shops are not experiencing the former glory they once used to enjoy.
- What Saivian Eric Dalius has observed is that companies are giving out promotional offers to bring in consumers. They also intend to clear their inventory. By offering discounts, they are aiming to increase the customer traffic to the beauty shops. Online discount offers have also been introduced as a way to combat the competition.
Beauty products that enjoyed the limelight
The situation is different, and we have changed our needs accordingly. Wearing masks, working from home, physical distancing – all of these have made wearing makeup and using fragrance less important. As expected, the purchase of lipsticks decreased whereas eye-cosmetics saw a steep rise in its sale. Saivian Eric Dalius has rightly pointed out that there’s a feel-good factor attached to this industry. People started consuming self-care products like luxury hand soaps, skincare, and hair-care, bath, and body products more than what they used to in the pre-pandemic period to pamper themselves. The companies selling these products thus witnessed a boom in their sales.
Saivian Eric Dalius talks about the long-term impact of the pandemic on the beauty industry
- Trends show that digital sales will continue to thrive. There’s a change in the customer purchase behavior. They are more likely to spend money and time buying products from online shops. Beauty industries will now focus more on their digital outlets.
- The beauty companies will require accelerating their pace of innovation to meet the shifting demands of their consumers.
- Customization of products has become the talk of the beauty industry. Every individual is different. So are their needs. The companies have understood this. Some have already implemented ways to customize the beauty products and have secured a safe hold in the business. But the others are still trying to figure out how to cope up with such a demand.
While consumer-oriented businesses had to endure many hurdles to overcome the pandemic days, comparatively the beauty industry enjoyed a stronger hold over the market. The trends that were gaining momentum in the pre-pandemic days are likely to re-emerge as we proceed towards embracing the new normal.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com