A recent report surmised that online beauty sales have decreased as compared to last year as customers are preferring to shop in stores.
According to a new research from 1010Data’s new report, ‘2022 eCommerce Prestige Beauty Spotlight: Online Sales in Decline in 2022’, the online beauty sales in the prestige beauty industry have significantly decreased over the previous year as more customers turn to brick-and-mortar locations for their beauty purchases. This information confirms some preliminary findings from Q1 2022, which were published by NPD and revealed that brick-and-mortar sales are exceeding online sales. Brick-and-mortar stores once again dominated the beauty industry in 2021, while e-commerce sales remained higher than in 2019.
According to the 1010Data analysis, online beauty sales will fall by 14 per cent between 2021 and 2022, reversing the previous year’s 51 per cent growth. The conclusion of the coronavirus pandemic lockdown and masking is blamed for the decline in sales of prestige beauty products purchased online.
According to the survey, most customers prefer to buy beauty goods in physical stores because doing so enables them to colour match and test the products rather than just viewing them on screens. The situation isn’t all gloom and doom, though. The survey discovered that overall sales growth for luxury cosmetics merchants have increased by 36.7 per cent over the last two years due to the increase in brick and mortar sales. Additionally, and supporting the NPD statistics, despite the fact that online sales are falling, they are still higher than they were prior to the pandemic. According to the 1010Data survey, prestige cosmetic retailers made more than $3 billion in sales online over the course of the previous year.
While the other businesses in the research saw reductions in click-and-collect orders, Sephora had a 7.8 per cent boost in share growth. The paper contends that retailers will always require e-commerce sites for their goods, but asserts that when consumers go back to stores, online sales will stagnate. According to Jonah Ellin, Chief Product Officer, 1010data, the data emphasises the need for retailers to improve the in-store customer experience while also improving their online presence with focused key search terms that highlight their value offer.
