Ragtrader Beauty Report 2023
Ragtrader Beauty Report 2023
Beauty
Report
2023
Forward
Beauty Report
Letter 3
80% 50%
ecommerce industry continues make an immediate purchase, all a particular garment or outfit, AI
to boom, with online shopping within a single platform. algorithms can be used to analyse
taking up 36.1% of all beauty These examples illustrate the its attributes, such as colour,
sales in 2021 as compared to a changes and trends witnessed pattern, or style, to share instant
low 22.5% in 2017, according to in a tech-enabled fashion suggestions of similar products.
Statista. Despite the reopening of and beauty retail landscape. Retailers looking to adapt
physical storefronts and an overall Customers are no longer satisfied their strategies and invest in
V natively meets, on V customers managed to global economic slowdown,
digital commerce in Australia is
with simply purchasing products,
as they seek meaningful
innovative digital capabilities must
demonstrate that technology is
average, 80% of the entire customize 50% of their still thriving, with a staggering interactions, exceptional service, not adopted for its own sake. It is
operational needs of large components using V 9.4 million households shopping and a seamless journey across critical that they strike a balance
2,600+ 3,400
with mobile devices driving intelligence (AI) and augmented it. VTEX’s Order Management
around 60% of all online sales. reality (AR)/ virtual reality System (OMS), for instance,
According to a survey done (VR), that are reshaping the seamlessly integrates e-commerce,
in Australia by Advanis, 2 in 3 way businesses engage with marketplaces, and physical
Generation Z-ers say that they find customers. Across the world, AR/ stores, and enables a unified and
online shopping more enjoyable VR technologies have emerged frictionless shopping experience
than in-person shopping, and as a powerful tool, enabling across multiple channels.
B2C and B2a active online stores would want to keep buying almost customers to virtually try on Personalisation is the key
T he post-pandemic recovery
of beauty and personal care
in 2022 saw a deceleration,
tempered by high inflation,
rising unit prices and overall
economic uncertainties, which
continued to impact the daily
lives of consumers in Australia.
At an aggregated level, beauty
and personal care sales
declined slightly, by less than
1% in 2022 (constant prices)
but increased by mid-single-
digits in current terms.
Deceleration was particularly
evident in key beauty categories
such as skin care and hair
care, which were standouts
the previous year. Declines in
premium and mass skin care
prices in 2022 were contributed
to this deceleration despite
the well-received messaging
of wellness, skin health and
self-care. Consumption of
skin care was also influenced
by consumers continuing to
return to pre-pandemic lifestyle
routines; this translated in
less time for extensive beauty
routines observed during
lockdowns. ‘Back to normal’ also
meant the rebound of colour
cosmetics, with many products
offering added skin care benefits,
which was reflected in the more
limited growth of skin care
during the year.
The repositioning of
Source: Euromonitor International
fragrances as a self-care item
has helped the category to
Eye on data
become less elastic since the discretionary purchases. They’ll that premium products are
pandemic and sustained its try to reasonably indulge or still in demand, with 29% of
volumes amid rising unit find small, affordable luxuries respondents in Australian saying
prices. Prestige fragrance has that bring them joy – the return they would rather buy fewer, but
also been a driver of growth of the ‘lipstick effect’. Despite higher quality things. Brand is
with consumers indulging in consumer’s enthusiasm for also an important consideration,
more premium brands with low cost and greater value, with 18% of respondents in
EUROMONITOR RESEARCH MANAGER JULIA ILERIA
stronger concentrations. many Australian shoppers Australia saying they regularly
CRUNCHES THE NUMBERS ON BEAUTY. Australians remain cautious still consider a number of seek strong/well-known brands.
with their spending, given other factors when faced with Using Euromonitor’s
the pressure on disposable purchase decisions. In fact, consumer trends analysis
incomes - but at the same time Euromonitor’s 2023 Consumer (Top Ten Consumer Trends
they are more intentional with Lifestyles survey, found for 2023) we can better frame
6 Beauty Report Beauty Report 7
Going to market
particularly cosmeceuticals. provide tips to our customers. to make beauty simple and
However, rather than slowing As more Australians become digestible for all, particularly
down once lockdowns lifted, comfortable shopping online, those who do not consider
the category has continued to it is important we continue themselves beauty experts.
experience sustained growth to innovate and invest in a Additionally, we’ll continue
suggesting consumers are still customer experience that to promote cross-category
THE ICONIC’S BEAUTY EDITOR SOPHIE HOWE AND SENIOR BUYER IN willing to invest in quality can mirror the benefits placement and include our
BEAUTY KATE SAUNDERS REVEAL HOW THE ONLINE MARKETPLACE IS skincare online, with makeup and of an in-store experience beauty products within fashion
fragrance categories also growing alongside the convenience campaigns. We’ll also look
FAIRING IN BEAUTY IN THIS ROUNDTABLE CHAT WITH RAGTRADER.
in popularity. of shopping online. This at creating more app-centric
Similarly, hair brands like again means leaning into incentives and initiatives - this is
ghd, Dyson and Mermade Hair more supplementary content, our superpower in the space and
continue to perform strongly continuing to drive our three- a priority in driving growth. ●
16 Beauty Report Beauty Report 17
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