Beauty and personal care products are used on skin to avoid symptoms such as pimples, black patches and early aging. Rising price-sensitive millennial shoppers boosted the growth of online retail channels. Additionally, consumers prefer shopping online at discounted rates. In addition, wide range of products on online platforms and time-saving aspect are factors that contributed to rise in online retail phenomenon. Along with wide variety and discounted rates, better security features by E-retailers, easy delivery, easy-to-navigate and customer-friendly services are additional factors.
The cosmetics industry is on omni-channel integration, and online channel will be transformed from a pure sales channel to a brand promotion platform. E-commerce channel can generate amount of customer behaviour data, value for aspects of cosmetics industry chain. In long run, companies with channel control and supply chain integration capabilities will have more competitive advantages.
Drivers and restrain factor of the market
The main growth factors for global online beauty and personal care market include an increased use of online shopping platforms with facilities such as discounted prices and secured digital payments, easy returns and rapid deliveries. Moreover, rising scope of m-commerce (mobile-commerce) is expected to be advantageous for the market players during the forecast period. However, safety issues related to personal care products will challenge the market growth.
Major players in the market.
The global market is highly competitive with the presence of number of small-scale and large-scale vendors who compete in terms of quality, product differentiation, innovation, prices, brand promotion and distribution. Key players operating in this market include Estée Lauder, L’Oréal, and P&G. Other prominent vendors include Johnson and Johnson, Avon, Coty, Revlon, FLYCO, Amore Pacific and others. Major players are involved in selling of various home and other brands. Rising scope of m-commerce and network marketing is predicted to be benefitted for market players during the forecast period.
Recent key development in the market
Darkening the skin: a new reform in the beauty market
Solid black from Millennium, is an auto-darkening technology that is used as tan enhancer and comes up with silicone bronzer is available on Amazon, an e-commerce platform. This product is rated as one of the best buys from amazon in this month, according to Daily Mail.
Voice activated mirror: A mirror that can order from shopping sites
Alibaba launched AliGenie voice assistant, an AI Tmall Genie speaker in July 2017. It is a voice activated mirror that can adjust light settings with voice.
Leading region and fastest growing region
Global online beauty and personal care market is geographically segmented into North America, Europe, Asia Pacific and Rest of World. Asia Pacific dominated the market with maximum share during forecast period, that is primarily driven by new brands availability and rising demand for variety of cosmetics. The growing adoption of specific products such as anti-aging cosmetics, skin lightening products for large population base of the region are expected to boost the market growth in this region.
Global online and personal care products market is segmented on the basis of product types as Skin Care, Color Cosmetics, Hair Care, Oral Hygiene Products, Deodorants, Bath and Shower Products, Male Grooming Products, Fragrances and Baby and Child Care Products. Among all these, skin care segment can be accounted as dominating segment in various regions. It include body lotions and facial care products that contribute in enhancing skin quality, cell rejuvenation, prevent wrinkles and other benefits. Various brands availability with novel traits and advancements including solution for many skin related problems are some features that will increase the market share of this segment in the market. Furthermore, application segment consist of mass and Luxury/pharmacy segment.