How Cosmetics Industry Is Persisting Through Highs and Lows of Coronavirus

Like the rest of us, you have been stuck inside your home. And like the rest of us, you have gone through online skincare or personal care stores. Looking for the right cosmetic product while chilling on the sofa is comfortable. But do you feel the need to spend as much money you did before the pandemic on cosmetics?

The resounding general answer will be no. Sure, the sale of cosmetic products is still large. But it has suffered in the pandemic. Crisis response has worked in some sectors. In the end, the cosmetic industry has managed to survive the Covid-19 pandemic. But not without taking a blow. Changes brought by the Corona-virus outbreak will last long.

The Corona-virus pandemic is testing the resiliency of the cosmetic industry. Let’s focus some areas on how the cosmetic industry is surviving the Coronavirus.

Shift to Digital Cosmetic Market

The cosmetic industry is becoming very consumer-focused. E-commerce allows customers to shop and skim through products online. You no longer have to suffer through the friction that comes up when dealing with retailers.

Cosmetic businesses have assessed a shift to digital mode. Traditional buying and selling of products from stores became a hurdle. Thus, they have started to invest more money into e-commerce stores. Direct sales are bringing more money. At least when compared to the present revenue brought in by traditional beauty retailing done in stores.

The cosmetic industry has benefited from the digital direct sales model. Online and TV stores, shipping, and delivery infrastructure are getting a boost. There are still flaws in the direct sales system. But it is the closest to maximum convenience that we have ever been.

Add your desired items to your cart, hit the Buy button, and now you wait. Not for long though. Within hours or 1-3 days, your ordered product will reach your doorstep. The TV shopping process is similar and easy.

The digital cosmetic market is easy to use and browse through. The number of people growing accustomed to online beauty shopping is growing daily. Millions of customers around the world have already made their shift and are unlikely to return back to stores. Hence, the cosmetic industry’s growing investment in the online retail market is justified.

Skincare and Self-care Beauty is the Way to Go

People are no longer buying make-up products as much they used to. Regular office hours have shifted to work-from-home mode. Hence, the sale of make-up items such as foundation, blushes, bronzer, has gone down.

Attitude towards cosmetic items has changed during this outbreak. People are now staying at home. They no longer spend time every day in front of the mirror to apply make-up. Instead, the focus is now on self-care and skincare beauty.

The sale of items such as moisturizers, face masks, soap, hand sanitizers, etc. has gone up. Multi-purpose products are being sold every few minutes by online retailers. Self-care routines are a new rage. Skincare brands are incorporating self-care into their products as much as possible.

Professional Outlets, Department Store Hit Hard

Look at the leaflet of a beauty parlor or a physician’s office. You will see information about protocols followed inside the outlet. Professional Outlets and department store retailers have suffered a massive blow.

Chain beauty stores are being closed every day. Sanitation protocols are the new norm. Faced with all this, the gradual reopening of retail beauty outlets will be a slow process.

It will be hard to sustain customer traffic inside the stores and salons. In recent months the average consumer is making shorter trips to the market. Drug stores and supermarkets have increased their stock of beauty products. So the average person does not feel the need to go to beauty stores anymore.

Professional beauty outlets and retail stores lost millions of dollars in revenue. Some stores faced permanent closures. Salon services in particular have been harder now, compared to the Great Recession.

Rise of Indie Cosmetic Beauty

Independent online beauty businesses that have turned up are hitting record sales. These businesses exist online and have minimal retail market presence. You won’t see these products on the shelves of your local departmental store. But they have adapted to the trend.

Indie beauty is garnering popularity and hitting record sale numbers. They advertise their products online and connect with customers on social media. Unlike big names in the cosmetic industry, indie cosmetic brands have less to lose. They have less capital, size, and risks. Hence, they have managed to bank upon direct sales and boost their rise.

Testing Cosmetic Industry’s Power of Adaptability

The cosmetic industry has reacted to the pandemic situation in different ways. Implementation of persistent efforts to adapt to the pandemic is still ongoing. The attitude of the customer base has shifted. Make-up routines have evolved.

Beauty has gone virtual. Influencers now command a large share of the market. They advertise and persuade customers to buy products. There are beauty gurus on the web showing you how to do makeup, style your hair, etc as best you can. These have led to the rise of what’s called ‘Do-It-Yourself’ beauty. Since professional beauty outlets aren’t available, why not perform the beauty treatment yourself?

The cosmetic industry’s adapted itself to the changing nature of the world. Though revenues and sales have taken a hit, the worse hasn’t descended upon the industry. This is all thanks to its power of adaptability.

Future of Beauty Retailing Looks Different

Few stores are reopening as regulations begin to ease up. But they have to follow strict protocols. Masks and hand sanitizers are standard. Social distancing rules are still in place. By the looks of it, the prior normalcy that we took for granted is now missing.

Thousands of chain stores have closed all over the world. Online stores have replaced them. Cosmetic businesses are investing more money into creating infrastructure for e-commerce.

Wide consensus tells us that people now have less to spend. Preference for multi-functional products has increased. They are cost-effective and meet the current needs. Demand for home hair dyeing products has also increased. This is due to the inability to go to professional outlets.

Delays in deliveries, packages lost in transit, and more are the downsides. Beauty retailing through direct sales has room for improvement. In the meantime, departmental stores and professional beauty chains will regain customers.

Long Term Impact on Cosmetic Industry

Virtual beauty consultations and trials are gaining popularity. But they cannot replace human connections. Membership at stores has gone down. Instead, people are choosing to be members of online stores.

Sample trails of products at retail stores that are reopening are troublesome. They result in wastage. And increased demand for extra packaging.

The cosmetic industry has invested in various channels to survive the pandemic. The revenue margins have still gone down. But at last, their hope to survive the pandemic has come true. A v-shaped recovery is what the industry is hoping for.

Sooner or later, retail and professional beauty outlets will revive in sales. New rules and regulations will come into effect to reduce the spread of the virus. Earlier normalcy will take years to come. Then to, it won’t resemble the past completely. But it will meet the current needs and allow the cosmetic industry to thrive as best it can.