While the beauty industry is known for its innovative nature, no one could have prepared it for what the pandemic had in store. From visiting salons as well as spas to shopping for products, every aspect of the industry saw a transformation. Now with vaccines rolling out as well as many restrictions being lifted, what comes next? What can we expect from businesses as well as brands moving forward?
Here are a few ways salons, beauty trends, as well as shopping for cosmetics have changed as well as what we can anticipate going forward.
The past as well as present purchasing of beauty products
In the presence of severe external influences including the serious prevalence of infectious diseases such as SARS or COVID‐19, the consumption patterns of consumers have been changing or expanding into the paradigm of online shopping channels than making offline purchases. Beauty purchasing activities have changed from offline to online due to COVID‐19.
The long-term impact of covid
There are going to be three main trends that covid has accelerated but is going to for sure stay in the beauty market.
Digital continues to rise. Pre-COVID-19 trends are going to likely accelerate, with direct-to-consumer e-commerce, such as brands’ websites, shoppable social-media platforms, as well as marketplaces becoming more important. Beauty-industry players are going to need to prioritize digital channels to capture as well as convert the attention of existing as well as new customers. On the operations side, the use of artificial intelligence for testing, discovery, as well as customization is going to need to accelerate as concerns about safety as well as hygiene fundamentally disrupt product testing as well as in-person consultations.
The pace of innovation accelerates. Even before the pandemic, brands were under pressure to overhaul their product-innovation pipelines, inspired by the ability of digital-native direct-to-consumer brands to go from concept to cupboard in less than a month. To achieve it, there may be a greater role for contract manufacturers, both to diversify (as well as thus reduce production risks) as well as to serve as thought partners in product innovation.
M&A rises as multiples fall. With the COVID-19 crisis causing significant damage to the balance sheets of brands, retailers, as well as suppliers, many companies are going to need to find new sources of capital.
While the beauty industry may be in a relatively stronger position than other consumer categories, 2020 is going to be one of the worst years it has ever endured. We believe, however, that the industry is going to remain attractive in the long run. The COVID-19 crisis is likely to accelerate trends that were already shaping the market, such as the rise of the global middle class as well as popular the use of e-commerce.
To sum it up
In the presence of the closure of premium beauty-product outlets because of COVID-19, approximately 30% of the beauty-industry market was shut down. Some of these stores are going to never open again, as well as new openings are going to likely be delayed for at least a year. The global beauty-industry market has been consistently resilient.
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