Author: Site Editor Publish Time: 2022-04-07 Origin: Site
The ongoing Coronavirous pandemic has impact consumer behaviour to a large extent. At the same time, the global business of beauty industry(comprising skin care, color cosmetics, hair care, fragrances, and personal care) has been shocked by the COVID-19 crisis.
This article examines the likely effects of COVID-19 on the beauty industry over the next three to six months. Then it explores how the crisis could fundamentally change the industry in the long term—and how retailers, strategic players, and investors can adapt.
The short-term outlook for the beauty industry
There is little debate when it comes to the long-term attractiveness of the global beauty industry. Not only has it grown steadily, it has created generations of loyal consumers. During the 2008 financial crisis, spending in the industry only fell slightly and fully bounced back by 2010.
Key factors for beauty industry’s recovery
1. Where and how beauty products are being sold
In-store shopping is greatly reduced. Prior to the COVID-19 crisis, in-store shopping accounted for up to 85 percent of beauty-product purchases. With the closure of premium beauty-product outlets because of COVID-19, approximately 30 percent of the beauty-industry market was shut down. Some of these stores will never open again, and new openings will likely be delayed for at least a year.
2. Which beauty products are being purchased
Because of Covid-19 crisis, social distance and mask wearing become the fundamental ways to protect ourselves. So it has become much less important to wear makeup and fragrance. For prestige brands, we see 55 and 75 percent declines in cosmetic and fragrance purchasing, respectively, versus a year ago. When consumers do return to work, many will continue to wear masks, further slowing makeup’s recovery.
Given the reality of working from home, at-home beauty become a new trends. Skin-care, hair-care, and bath-and-body products appear to be benefiting from self-care and pampering trends. More and more consumers tends to buy beauty device like face washer machine, facial steamer.
l The long-term impact of COVID-19 on the beauty industry
l Some changes resulting from the COVID-19 crisis are likely to be permanent.
l Digital continues to rise.
l The pace of innovation accelerates.
l M&A rises as multiples fall.
The definition of “beauty” was becoming more global, expansive, and intertwined with individuals’ sense of well-being. We believe the global beauty industry will more focus on consumer experience.