How to Grow Your Beauty eCommerce Business
Believe it or not, the beauty industry is one of the few markets that actually thrived during the covid-19 pandemic – a telltale sign of its resilience. Of course, the crisis led to a significant reduction of in-store sales, but it also fuelled a rising consumer interest in eCommerce alternatives for purchasing their beloved beauty products.
With less access to brick-and-mortar establishments, consumers became increasingly dependent on online platforms, accelerating a major shift toward eCommerce within the beauty sector – including brands that focus on skincare, haircare, makeup and fragrance. In the wake of shifting consumer preferences, brands quickly adapted by enhancing their online and social media presence, investing in superior eCommerce infrastructure, and leveraging digital marketing strategies to reach consumers directly. Virtual try-on tools have become omnipresent, as well as online consultations and augmented reality experiences. There are now so many innovative ways for customers to explore and engage with beauty products in the digital space.
The shift toward a stronger online presence has allowed businesses to expand globally, helping them reach audiences in far-flung places. Whether you’re already in the beauty industry – or hoping to join it – now is an opportune time to grow your eCommerce business. In this article, we’ll tell you everything you need to know in order to do that.
The Shift Towards Digital in the Beauty Industry
As we know, the pandemic prompted a significant decrease in in-store shopping due to lockdowns, social distancing regulations and health concerns. Likewise, it also spurred a shifting focus on eCommerce channels. The shift towards the digital in the beauty industry was largely organic – and based on necessity.
Email marketing played a critical role in this shift, as companies used email campaigns as a way of staying in touch with customers, providing updates and sharing information about product launches or promotions. In a world that was widely shut down, emails allowed beauty brands to stay visible.
Push notifications also became a powerful tool for engaging with customers online. Companies with mobile apps and websites started leveraging push notifications to deliver real-time updates, exclusive offers and reminders. This, too, helped brands stay connected to consumers during the pandemic.
In light of the heightened emphasis on online shopping, companies increasingly focused on user experience and interface optimization. Businesses strived to enhance their eCommerce platforms to make them as user-friendly, stimulating and secure as possible.
The adoption of digital marketing tools – including email marketing, push notifications and enhanced website design – played a crucial role in maintaining sales and sustaining growth during the pandemic and beyond.
The Rise of Sustainable and Natural Products
In conjunction with the rising popularity of online shopping, natural products have also emerged as a staple in the business realm. In recent years there has been a significant surge in consumer demand for sustainable, natural and organic beauty products.
Experts believe the growing interest among consumers in natural products is a result of people becoming more conscientious about the environmental and health impacts of beauty choices. More than ever, consumers are craving products with transparent ingredient lists, free from potentially harmful chemicals. This has triggered a rise in popularity for beauty products that are cruelty-free, organic and plant-based.
Alongside the increased concern amongst consumers about harmful ingredients, regulatory bodies around the world have responded by implementing bans on certain chemicals and components commonly found in cosmetic items. For example, some regions have restricted the use of microbeads, which are tiny plastic particles often seen in exfoliating products, due to their environmental impact. Certain preservatives, colorants and chemicals deemed harmful to human health or the environment have also been restricted in certain places.
These bans and restrictions have had a positive impact on brands that align with the principles of sustainability and using natural or organic formulations. Generally, consumers are more likely to trust brands with stricter ingredient standards, and companies that clearly communicate their commitment to sustainability and clean beauty have been hugely successful at attracting environmental and health-conscious consumers.
Hyper-Personalization and Technological Advancements
These days, consumers want everything customized to meet their personal needs. As such, hyper-personalization plays a major role in increasing sales, by tailoring marketing strategies and product offerings to meet individual preferences. This unique approach creates a more engaging experience for consumers, and is a great strategy for growing a beauty business.
One noteworthy example of a brand leveraging hyper-personalization is INGLOT Canada – a cosmetics brand. The company has made hyper-personalization a core part of its marketing efforts, and it has helped them connect better with consumers. Through customer data analysis, INGLOT Canada identifies individual preferences, purchase history and behavior patterns, then subsequently delivers personalized product recommendations, exclusive offers and targeted marketing communications to customers.
INGLOT Canada’s approach to marketing has enhanced customer satisfaction and loyalty. Consumers feel more valued when they receive recommendations that directly reflect their preferences, resulting in increased trust and a higher likelihood of making a purchase. This approach boosts sales, while also contributing to a positive brand image and long-term customer retention.
Beyond hyper-personalization, artificial intelligence (AI) and augmented reality (AR) technologies are helpful for driving conversions in the beauty industry. Alibaba’s YouCam Makeup AR is one key example of how these technologies can contribute to a beauty business’s growth.
YouCam Makeup AR incorporates AI and AR to allow users to virtually try on cosmetic products in real-time using their smartphones or other devices. The app employs facial recognition technology to accurately map facial features and apply virtual makeup. Users can then visualize how certain products will appear on their skin before making a purchase.
This type of technology hugely enhances the online shopping experience – wherein the main shortcoming is the inability to try on products. Consumers can become more confident in their purchasing decisions, leading to increased confidence in their purchases and a higher likelihood of completing transactions.
Consumers are always looking for new, fun and exciting ways to engage online, and AI/AR technologies are a great way to increase user engagement and social sharing. In turn, this will generate buzz around your brand and indirectly promote your products to a wider audience base.
Selecting the Right eCommerce Platform
There is no shortage of eCommerce platforms out there. The tough part is choosing the right one for your beauty business. Our three favourites include Shopify, WooCommerce and BigCommerce, all of which are reliable, and offer great options for customization and scalability.
Shopify is known for its user-friendly interface, making it an excellent pick for those with limited technical knowledge. Shopify also has a vast app ecosystem, including programs that are specifically tailored for beauty eCommerce.
Meanwhile, if you prefer using WordPress and have some familiarity with the platform, WooCommerce is the best choice for you, as it has a plugin for WordPress. Plus, WooCommerce is highly customizable, allowing you to have a ton of control over the design and functionality of your online store.
BigCommerce is another great option, known for its extensive and unique features. It has tools for everything you might need, including inventory management, multi-channel selling and advanced analytics.
Marketing Strategies for Beauty eCommerce
Good marketing is a must for successful beauty eCommerce ventures. Effective marketing plays a major role in helping businesses reach target audiences, and stand out in the competitive landscape. Key marketing strategies include social media promotion, strategic partnerships and influencer marketing.
Since beauty products are highly visual, leverage high-quality images and videos to showcase your products, particularly on social media. Actively engage with your audience by responding to comments, fielding questions and running polls. As we discussed above, email marketing is also a great tool for broadening your brand’s reach.
Role of Influencer Marketing
Influencer marketing has emerged as one of the most impactful marketing strategies out there – particularly within the beauty industry. Estée Lauder, a beloved beauty and cosmetics company, for example, has invested heavily in influencer marketing, which has enhanced the brand’s overall presence online and allowed them to connect with a broader audience.
Estée Lauder regularly collaborates with popular beauty influencers, makeup artists and skincare gurus, who showcase their products across various social media platforms. Influencers play a crucial role in showcasing and reviewing Estée Lauder’s products, which is a major pillar of the brand’s marketing efforts. By partnering with influencers who align with Estée Lauder’s brand identity, the company can capitalize on the influencer’s credibility and audience. Influencers often act as trendsetters within the beauty space, and given their influential voices, they can truly drive interest and sales for the brands they feature.
Strategic Brand Partnerships
Like influencer marketing, brand partnerships also offer numerous benefits, ranging from expanding reach and unlocking new audiences to enhancing brand image and driving sales.
For one, brand partnerships can unquestionably help you broaden your reach. In a collaboration between Eddie Bauer and Ford, for example, the outdoor apparel brand joined forces with the automotive giant to make a special edition Ford Bronco. This partnership expanded Eddie Bauer’s reach beyond its typical audience, tapping into the automotive market and engaging with consumers interested in both outdoor adventures and cars.
Likewise, makeup brand MAC partnered with the popular mobile game Honour of Kings to create a limited-edition makeup collection inspired by the game’s characters. This partnership similarly allowed MAC to reach a younger audience. It created a connection between the gaming and beauty communities – which generally have very little to do with one another.
These two strategic brand partnership examples also reinforced the benefits of cross-industry innovation, showcasing the creative potential that arises when two very different industries collaborate. Brand partnerships also enhance brand image and credibility for all participating companies, and if done well, they can boost sales. As was the case with both Eddie Bauer and Ford, as well as the MAC and the Honour of Kings collab, the limited-edition offerings were highly appealing to consumers. The exclusivity of the collaborations contributes to the appeal, thereby driving sales.
In sum, brand partnerships can work wonders with unlocking untapped audiences, and they are also great for fostering cross-industry innovation, boosting sales and enhancing brand image.
Customer Retention and Business Growth
Turning first-time buyers into repeat customers is crucial for the long-term success of any beauty business. Acquiring new customers often entails significant marketing and advertising expenses, making it more cost-effective to retain existing customers.
We’re big believers that follow-ups and automation tools are highly effective for building customer loyalty and understanding customer preferences. Through follow-ups, businesses can garner feedback from first-time buyers. Having a good grasp of consumer concerns and suggestions helps businesses tailor products and services that better need their needs. Automation tools can also be programmed to send out satisfaction surveys or prompt customers to contact you with any issues.
The better your customer service is, the more likely you are to retain customers for the long run. Likewise, the more customers you can retain, the more your business will grow.
Conclusion
If you’ve made it this far in the article, you should have a solid understanding of how to grow your beauty eCommerce business. We encourage you to consider incorporating natural products into your offerings, as it’s undoubtedly a growing segment of the market, and also playing around with hyper-personalization. Regardless of what you’re selling, make sure to use all the core marketing strategies – including influencer marketing and strategic brand partnerships. The beauty market is an exciting place to be, and we wish you much success as you aim to grow your eCommerce venture.
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