BUILD YOUR AMAZON BEAUTY STRATEGY
HOW AMAZON IS EXPANDING ITS BEAUTY CARE REACH
Online retailing is expected to grow by 73%
through 2022, becoming a larger channel than
even traditional grocery retail, according to new
data from Euromonitor International.a
“It’s no surprise that now three of the
top-five largest retailers in the world are
internet retailers,” said Michelle Grant, head of
retailing at Euromonitor International. “ JD.com
entered the top five in 2017, making it the
third e-commerce player in the top five, joining
Amazon and Alibaba.”
Euromonitor’s report found that 50% of total
2019 e-commerce sales will be conducted via
the mobile channel, leveraging emerging facial
recognition software and cashier-free technolo-
gies in physical stores.
Amazon Grows its Share
As the competition among online retail giants
heats up, players like Amazon have expanded
the ways in which they engage consumers.
Amazon’s Q3 2017 revenue totaled $43.74
billion, compared to $32.71 billion the same
period of 2016.
Beauty was a strong category for Amazon in
Q3, according to One Click Retailb, with U.S.
sales totaling $405 million, led by mass skin
care, top sellers like Gillette Fusion Blade Refills,
and fast-growing categories like professional
salon and spa products. Canadian sales for the
period totaled $10 million, led by skin care, the
fast-growing bath and shower category, and top
sellers like the Proactiv 3-Step Acne Treatment
System ( 60 day).
Sales in the United Kingdom for the period
reached £ 30 million, led by skin care, the
fast-growing prestige hair care category and
top sellers like the Foreo Luna Mini 2 Facial
Cleansing Brush & Anti-Aging Skin Care Device.
German sales in the quarter totaled e35 million,
led by general skin care and the rising prestige
skin space, as well as lead sellers like the M2
Beauté Eyelash Activating Serum.
French beauty sales totaled e5 million, led
by makeup, including the top-selling WUNDER2
Wunderbrow Sourcils Parfaits en 2 Minutes,
and the fast-rising fragrance segment.
How Amazon is Growing
Amazon’s largest competitive advantage, of
course, is its Prime program. According to data
compiled by Statistac, “The average annual
Amazon shopping expenditure of Amazon Prime
members was found to be 1,200 U.S. dollars on
the online shopping platform every year, compared
to 600 U.S. dollars spending of non-Prime
members.” Personal care products represent one
of the retailer’s top categories in the United States,
behind electronics and physical and e-books.
Recently, Amazon unveiled Prime Samples
( www.amazon.com/samples ), a program available exclusively to Prime members, which allows
them to purchase personal care, baby care,
beauty and grooming product samples ranging
from $2 to $4, an amount which is automatically
credited back to the member to be used toward
a future purchase of select full-sized products
from the relevant category.
As of press time, participating branded prod-
ucts included Talika Mini Lipoids Expert (0.06
oz), V76 by Vaughn Smooth Shave ( 1. 30 oz),
Elizabeth Arden Advanced Ceramide Daily Youth
Restoring Eye Capsules ( 1 oz), and Pureology
Smooth Perfection Shampoo and Conditioner.
Amazon’s Alexa personal assistant is also
being used to help consumers find targeted skin
care solutions. A new Alex skill from Eucerin
prompts consumers with a few key questions
and generates product recommendations based
on an analysis of the individual’s skin care
needs, converting the brand into a consultation
resource in consumers’ homes. The service is
available on Alexa devices such as the Amazon
Echo, Echo Dot and Echo Show.
Similarly, Wunder2’s new beauty tips skill allows
users to ask Alexa for the “beauty tip of the
day,” generating insights and daily updates from
makeup artists and influencers. The beauty tips
skill can also send videos corresponding to the
tips to the consumer’s phone, computer or TV.
With Amazon always a leader in expanding
retail in new ways, brands are coming along
for the ride.
cStatistics and Facts about Amazon;