Monday, January 17, 2022

Making sense of the newly fragmented beauty and personal care landscape

Beauty and personal care has always been ahead of the curve in terms of omni shopping behavior, but the pandemic-inflicted rise in online shopping catapulted e-commerce growth even further as an upwards of 33 million shoppers purchased a CPG product online for the first time since March 2020.

In addition to the fragmentation caused by the influx of online beauty and personal care shoppers, the wave of department store closures caused 22% of all department store beauty and personal care dollars to leak towards other channels–and not just online. While online captured the largest portion of these dollars, grocery, drug and some mass outlets were able to capture sales as shoppers experimented with mass beauty brands and attempted to meet needs in a one-stop-shop.

With a diverse array of new shoppers comes a diverse array of new shopping habits and consumer preferences. Retailers must identify who their new shoppers are, where they’re coming from, and need to cater to their needs if they want to maintain their new customer base.

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