By Oliver Cox, Digital Strategy and Innovation Lead, Longneck and Thunderfoot
From virtual try-ons to mask-friendly looks, the coronavirus pandemic has changed how people buy, wear, and experience makeup. What does this mean for marketers?
The coronavirus pandemic has touched every major industry — including the global beauty industry. Skincare, fragrance, color cosmetics, and personal care together comprise a $500 billion a year industry. First-quarter post-COVID sales have been weak, and McKinsey’s research estimates that global beauty sales could fall 20 to 30 percent in 2020.
However, all this doesn’t mean that consumers are no longer interested in beauty products and services. The beauty industry has proved resilient during economic downturns, and this resilience is likely to continue. During the 2008 recession, sales dipped only slightly then rebounded back to normal within two years.
While we can’t predict what will happen to global retail trends, one thing is certain — the pandemic, the lockdown, and now the gradual reopening of cities are changing consumer behavior. Beauty marketers and retailers will benefit from keeping an eye out for new consumer trends.
Here are five ways consumer behavior in the beauty industry is evolving in response to COVID-19:
Influencer Content Is Here to Stay
A beauty influencer’s income largely depends on brand trips and PR packages, and as brands cut spending, it makes sense that many influencers are taking a hit. In March, more than 25 percent of influencers reported receiving fewer offers from brands during the initial outbreak of COVID-19.
The sudden dip in offers notwithstanding, the age of the influencer is far from over. More beauty brands are exploring omnichannel collaborations, and influencers continue to present an attractive option. As remote work increases, people are spending more time than ever in front of their screens, and influencers can connect consumers directly with the brands who work with them. We have seen significant spikes in social media usage compared to last year, and influencers now have an exceptionally large captive audience — 46 percent of whom want the light-hearted content.
Additionally, influencers may be ideal partners during a time of social distancing and budgetary constraints. For many beauty marketers, working with influencers can be a cost-effective way to reach consumers as traditional retail recovers from lockdown.
Digital Experiences Drive Sales
Beauty retailers like Ulta and Sephora have been hit hard by COVID-induced store closures. Prior to the pandemic, 85 percent of all beauty purchases were made in-store, but closures have shut down 30 percent of the beauty market. Even as stores reopen, social distancing will prove harder to enforce in smaller and tightly-packed stores, and arrow guidance systems aren’t as effective in beauty supply stores where shoppers like to browse. What’s more, trying on makeup – a key part of the in-store beauty experience – will be socially and medically verboten.
As more brands shift to e-commerce to compensate, quality online experiences will matter more than ever. Beauty brands are accelerating digital improvements and putting innovative CX first. Virtual makeup testing tools like Ulta’s GLAMlab aren’t new, but they are very much in the spotlight as virtual try-ons become the new normal. For both large retailers and direct-to-consumer brands, now is the time to invest in better user experience and upgrade digital tools.
Brand Activism is Essential
As we all rally together in the fight against COVID-19, beauty brands of all sizes have donated money or supplies to COVID relief efforts. Tatcha collaborated with Mayor Bill DeBlasio to donate one million face masks to New York City’s essential workers. L’Oréal and LVMH have converted their manufacturing facilities into hand sanitizer production plants. Billie, an Instagram-famous shaving brand, is donating up to $100,000 to food banks across the United States. There are many ways to lend a hand, and consumers are watching for the brands that stand up to do what’s right.
Self-Care Sunday Takes Center Stage
Between mandatory masks and stay-at-home orders, beauty consumers have had to change their buying habits. Fragrances and products for a complete look— foundation, blushes, bronzers — have become less important, and prestige brands have seen drops in sales as large as 75 percent. As a response to lockdown measures, consumers are looking to self-care products like moisturizers, vitamins, and bath items. According to market research from Revuze, “moisturizing” was used 56 percent more often in skincare reviews in January 2020 compared to last year.
With many beauty salons still closed, there has also been an uptick in DIY beauty products like hair color, hair clippers, and nail kits. Older trends, such as wellness products aimed at home-usage, have also seen a revival during the lockdown, and as retail stores operate at a reduced capacity, they are likely to remain a popular trend in the coming months.
The “New Normal” Makeup Trends
Finally, as consumers mask-up in accordance with CDC guidelines, makeup trends are also adjusting. The popular makeup subreddit r/makeupaddiction saw a 36 percent increase in searches for eye makeup looks from March 2020 to the end of May. Makeup artists are showing off their skills by coordinating eyeshadows and liners with their protective masks and ensuring their brows are perfectly maintained.
Alternatively, as more of us work from home, some influencers are embracing the break from lash extensions and lip fillers and opting for a more natural look. For the beauty-savvy remote worker, there’s no shortage of Zoom-friendly makeup looks to try. Even as the future of brick-and-mortar retail continues to look uncertain, the beauty buzz is still strong, and marketers still have plenty of opportunities to engage consumers.
Social distancing guidelines have changed how we view public gatherings, but they have also underscored the importance of self-care and looking good on camera. As lockdowns lifts and consumers and marketers adapt to the “new normal,” more long-term trends are likely to emerge. Post-COVID beauty trends will continue to evolve, and marketers can help their brands gain a competitive edge by staying attentive and flexible.
Oliver is a British digital strategist, currently based in New York City where he lives with his wife Winona, a fashion entrepreneur. He leads strategy at L&T, a digital marketing agency, where he builds storytelling systems for clients from startups to blue-chips to international NGOs. Oliver focuses on helping his clients to understand what is unique about their vision, then works with them to express it on a regular basis and thus connect with the people that matter. A musician and writer, he is currently working on his fourth novel and his second concept album.
Categorized in: Trends/Insights