The Retail Beauty Sector’s Prospects until 2023
The beauty industry has proven to be a resilient one over the past years and will seem stronger in the future. 2023 will be unlike any previous year because of the tremendous technology accelerating the industry. This industry is evolving towards greater transparency and inclusivity. In addition, from personalized skincare products to nostalgic trends and styles, beauty is genuinely evolving self-care.
The offline market of beauty products
There are countless new beauty brands that have emerged, and there are lots of new ingredients used in formulating a product. Certainly, there are various online platforms that offer a wide range of beauty products and provide them directly to consumers. However, the products are still predominantly sold in retail stores. Industry experts say that retail stores provide an advantage as it is hard to see if a beauty product works for you without using it yourself first.
The reasons include:
- Trust in testing the products: Despite the ease of online shopping, consumers visit a store to test out the product on themselves and then they will buy. Testing the products in real life is considered more trustworthy. Also, you may feel the texture and scent of the product. For example, customers try creams, moisturizers, and lotions before buying so that they do not experience any redness or irritation after using. You may also check whether the product is suitable for your skin and hair.
- An experience in itself: Shopping for beauty products provides you with an experience. You may apply it on yourself before purchasing to try new looks. For example: while buying lip colors, women usually apply them before buying to see whether the color suits their skin type or not.
- Brands sell offline: We usually see counters of different beauty brands in shopping malls and other retail stores. This is because the brands understand that the customers should get a chance to try out products. The trust of customers grows and they further share with their friends and family. This means more people are likely to visit offline stores.
Growth of the beauty retail industry
The Indian market for personal care and cosmetics is predicted to grow by 3.86 percent yearly and by 143 percent in terms of volume year over year. The worldwide health and beauty retail business, and cosmetics in particular, have shown rapid and consistent growth since the pandemic in 2020. It is predicted that the market will top $100 billion globally in 2023. A survey has found that 85 percent of individuals shop for beauty products in-store and not online.
By following the below-mentioned market trends, retailers may see a significant increase in their profit in the future too from the beauty industry:
- Eco-friendly and sustainable products: Consumers are becoming conscious of the impacts a product may make on the environment. As a result, in 2023, people will seek products that are made of natural, organic, and cruelty-free substances. Also, people see that the packaging of the product is made of recyclable or biodegradable materials.
- Social Networking: Social media has become a significant component of people’s everyday lives. Retailers can increase their sales through social media by posting products available in their stores. People will see the posts and will come to purchase the specific product.
- Giving offers and discounts: Customers want deals that are in favor of them. For example, e-commerce platforms give various offers, discounts, and vouchers to their customers. Similarly, retailers may go for the same so that more consumers can buy products from their stores.
- More diverse products: Customers demand more inclusivity and diversity in the beauty industry, and in response to it, brands are broadening their range of products. These include anti-aging products, skin-lightening products, anti-acne products, anti-hair fall, and many more based on different skin and hair types. Therefore, retailers may keep a diverse range of products according to their consumers’ needs.
Technology trends shaping the retail beauty industry in 2023
The retail sector continues to undergo a digital transition, it has become increasingly dependent on artificial intelligence (AI) and augmented reality (AR). With the help of these technologies, the retail of beauty products is being improved and elevated in the future. Some of the technology trends used are:
- In 2023 we will see a rise in offline shopping, as the restrictions from Covid- 19 are lifted. AI and AR technologies help to improve in-store shopping purchasing by giving customers immersive, touchless experiences.
- Consumers all throughout the world had started to prioritize their skin care as an important part of their entire wellness routine. This has led to the rise of AI-powered skin technology, which allows retailers to advance skin care personalization in 2023.
Therefore, when it comes to purchasing beauty products, customers want to go to the store to try them before they buy. Retailers should follow the above-mentioned market trends in their stores so that more and more customers will purchase products offline in the future too.
