Analyst Insight by Virginia Lee - Senior US Research Analyst
The HBA Global conference took place in New York City’s Javits Center from 10-12 June. Digital beauty was a big theme at the conference as speakers talked about how growth in e-commerce, digital products, and social media has impacted the beauty industry.
Consumers Going Online to Buy Beauty Products
Online beauty sales are outpacing the beauty industry according to Diane Miles, Operating Partner at TSG Consumer Partners. Data from Euromonitor International shows that sales of beauty and personal care through internet retailing grew by a 15% CAGR from 2008 to 2013. In contrast, total global beauty and personal care sales grew by just 4% in the same time period. Ms Miles said that one in four beauty shoppers make beauty purchases online. Fifteen years ago, women purchased prestige beauty products from department stores in shopping malls and mass products from drugstores. Now, consumers have a wider range of options, including internet retailing, infomercials and home shopping, speciality retailers like Sephora, and subscription beauty boxes like Birchbox. Consumers are not just buying online but going online to obtain product information and compare prices. Avid beauty shoppers are also using smartphones and tablets to research beauty topics, sometimes even while they are in stores, a melding of modern and traditional shopping habits.