“Brands want long-lasting relationships with their customers, not one-night stands”
Said Brendan Teer, Global Store Design Director at Jo Malone, who kick-started our most recent breakfast discussion.
We, at HVO Search, brought together some of the most interesting beauty founders, senior leaders and investors to discuss how changing shopping habits and expectations are causing brands to modify their in-store and online shopping experience.
What Impact are Changing Shopping Habits Having on the Beauty Industry as a Whole?
eCommerce is playing a key role in catering for customers’ developing and demanding buying habits. With 95% of retail purchases expected to be facilitated by eCommerce by 2040, brands need to take advantage of these opportunities to increase conversion rates and grow customer loyalty.
Beauty tech start-ups alone have raised over $1.7 billion in aggregate to offer new beauty and grooming products and services. Much of the investment has focused on eCommerce platforms, subscription boxes, booking platforms, multi-category cosmetics, on-demand services and salon and stylist aids. When shopping online, customers have all the relevant product information at their fingertips and can quickly and easily execute transactions.
As Joel Palix, CEO at Feelunique, explained:
“Younger customers prefer to shop online as they find physical stores intimidating and too sales oriented. They feel the psychological pressure of having to buy something.”
However, eCommerce brands can have their own pitfalls. As Harry Richards, Associate at Manzanita Capital posed:
“How can niche brands with a limited scope for investment grow their platforms online?”