What’s new in the industry?
While the Beauty and Cosmetics industry may be doing better than other consumer goods categories, 2020 will still be the worst year on record for the industry.
The pandemic has changed consumer need for beauty and cosmetic products. No longer are individuals wearing makeup all-day every day, self-care, and a quick bit of lippy before a Zoom call has been much more common in 2020.
A report by Kinsey & Company has found the impact of the pandemic on this industry will not be 100% short term. A few long-term changes will alter the Beauty and Cosmetics industry in fundamental ways.
Digital will Continue to Rise
Direct to consumer e-commerce are becoming more important with global consumer online engagement and spending is set to increase. To attract these new online customers, Beauty and Cosmetics businesses will need to make sure their digital channels are prioritised to catch them.
Innovation has Accelerated
The pandemic showed supply-chains were not robust enough to cope with demand. The need for delivery speed has become greater and greater. To achieve a quicker delivery speed, there may be an increased need for contract manufacturers to diversify and innovate products. There may be potential for closer collaboration between brands and retailers.
Companies will need to find New Sources of Capital
Covid-19 has caused damage to many brand, retailers, and suppliers balance sheets; they will need to source capital in different ways.
The need for wellbeing has become increasing ingrained into everyone’s day to day lives; with good health being highly sought after. The definition of ‘beauty’ has consequently been altered from the need for glamour on a night out, to feeling good within yourself within the home.
Has your business or job in the beauty and cosmetics industry been effected by the pandemic?
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