Health & Beauty


Health and Beauty

The beauty and cosmetics industry is one of the oldest in the world. Longstanding distribution and purchasing methods in this sector have resulted in significant consolidation in the market, leaving a few big players to dominate. However, the sector is undergoing a significant change in both how products are distributed and how they are sold.

Digital-only, single-brand beauty and cosmetics firms are rising in popularity, leaving traditional business methods vulnerable to disruption. According to a 2017 Deloitte study, online sales and specialty stores are threatening traditional sales channels such as department stores. Consumers are also beginning to show signs of reluctance to engage in mass-marketing strategies.

These behavioral changes may appear to be alarming, but they can present significant opportunities. Brands are now able to reach their customers directly using new, widely available commerce technologies, effectively circumventing traditional channels. Business owners and brands can now easily enter new markets and grow in a way that was previously impossible.

Recent Statistic

According to Recent Health and Beauty Statistics, E Commerce Sales Are Expected to See 77% Growth Between 2021 and 2026.

The percentage of beauty brands that have a social media presence is 96%.

Beauty brands are forecast to spend $7.7 billion in 2022 on advertising.

Email marketing has a viable 11.5% open rate and the average CPC (cost-per-click) for beauty ads is $1.68.

62% of Health and Beauty Consumers Favor Beauty Brands that Host User-Generated Content on Their Sites.

Beauty brands are forecast to spend $7.7 billion in 2022 on advertising.

Data sourced from ,

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Digital Transformation In Health and Beauty Industry

The impact of millennial buyers is one of the greatest drivers of change in the beauty and cosmetics industry. Millennials, who are more likely to engage with the latest technology tools during their buying journey, account for an increasing portion of the marketplace. Indeed, their digital-oriented attitude is influencing the buying habits of other demographics.

More and more people are researching and purchasing new brands and products online. Traditional marketing such as television and magazine ads are supplemented, or even replaced by social media marketing and social media influencers. In addition, the increasing popularity of online beauty communities and influencers has prompted brands to invest in social media and influencer marketing to increase traction.

The old ways of doing business are losing ground. You can counter the negative effects of demographic shifts, technological advances, and consumer behavior shifts by diversifying your retail channels, embracing digital tools, and building a loyal community.

01. According to expert opinions, there has been a surge in the demand for artificial intelligence (AI) and augmented reality (AR) in the beauty and cosmetics industry. Both B2C and B2B buyers are able to virtually try on makeup using these relatively new technologies, thanks to their popularity. L'Oreal recently acquired ModiFace, a leading AR makeup provider, in order to better capitalize on people's interest in AR and cosmetics. 

Brands can use the information they gather from AI and AR tools to inform their future strategies. In addition, crowd-led innovations can help brands understand what their customers want and help them bring these products and services to the market in the most efficient manner possible.

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02. Beauty chatbots have become smart virtual store assistants for a variety of leading fashion, beauty, and cosmetic companies. With beauty chatbots, users are able to have a conversation much like they would with an in-store human assistant and receive beauty information, tips, and recommendations. The bots ask users a variety of questions, and once the users respond, the digital beauty consultation begins. 

Several beauty distributors and brands are adopting AI-powered chatbots to productively engage with their customers. Sephora has created an intuitive beauty chatbot which allows customers to try out a vast range of makeup shades and tones simply by uploading a selfie into the messaging interface. CoverGirl pioneered the use of the world’s first influencer chatbot, Kalanibot, which is modeled on Instagram influencer Kalani Hilliker, a teenage dancer with over 4 million followers. With the world’s leading beauty brands embracing chatbot technology, it marks the beginning of the trend toward more personalized and intelligent beauty experiences.

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03. Social media has become the ideal location for developing and preserving brand loyalty. Beauty products and services are promoted on image-centric social networks such as Instagram, and make-up reviews, while tutorials have become such a pervasive part of YouTube that they account for 10% of visits. Brands can reach their most receptive audience directly via social media, since most consumers follow their favourite brands there. 

The health and beauty industry is number one when it comes to influencer marketing. Consumers pay more attention to celebrity endorsements than they do to company advertisements, and they consider these celebrities to be their friends rather than distant celebrities. In addition, recommendations and reviews from fellow consumers and friends or family is more genuine of all. That’s why user-generated content is so important for brands looking to attract more loyal customers.

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Business owners and brands can now easily enter new markets and grow in a way that was previously impossible.

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