New A&M Beauty Survey Explores Critical Online Touchpoints and Key Consumer Priorities to Help Boost Online Conversion
New York, NY
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March 08, 2023 10:30 AM Eastern Standard Time
- Respondents estimated 60% of their makeup and skincare purchases were completed online
- Marketplaces (e.g., Amazon) were the most frequently shopped channel across makeup, skincare, and fragrance
- Online beauty purchases are replenishment focused – 57% in makeup, 60% in skincare, and 56% in fragrance
- Share of discovery and research done online varies greatly across fragrance, makeup, and skincare.
The Consumer and Retail Group of global professional services firm Alvarez & Marsal (A&M CRG) today released its third annual Beauty report, Beauty for the Digital Age, which explores when, and at what age, beauty shoppers are going digital along their purchase journey and uncovers research-based findings on the critical elements for brands and retailers looking to boost online conversion. Based on a survey of some 500 beauty consumers, the report explores the online channels that are most frequently shopped, at what point in the customer journey online channels are used most, and what online features are most important to consumers today.
The findings continue to confirm that the online beauty channel is especially important for discovery, research, and replenishment purchases, breaking down the discovery and research phases by demographic. “Since consumer needs and wants differ between online and in-store, beauty brands and retailers need to focus on understanding their digital audience and tailor their strategy appropriately,” said study co-author Patricia Hong, Managing Director at Alvarez & Marsal’s Consumer Retail Group. “Retailers should focus on consumers’ priorities to capture and defend online share in an increasingly competitive environment.”
The study also found that:
- Discovery: 57% of makeup and skincare and 42% of fragrance discovery happened online, with 26- to 40-year-old beauty shoppers most likely to view these products online
- Research: 64% of makeup and skincare and 45% of fragrance research happened online, again with 26- to 40-year-old beauty shoppers showing the greatest propensity for online
- The top 3 consumer priorities across categories are ratings and reviews, free shipping, and flexible return policies
- Top beauty websites are meeting most of consumers top priorities such as ratings & reviews, flexible return policy, and ingredient transparency but are falling short on a few key features like free shipping and free product samples
“Simple low-cost levers, such as providing ingredient transparency, can result in improved customer conversion,” said Manola Soler, Senior Director at Alvarez & Marsal’s Consumer Retail Group and report co-author. “It’s important for retailers to be nimble in their offerings since consumer priorities can change quickly – the perfect example being BOPIS (Buy Online Pick up In Store), which fluctuated during and after the pandemic.”
The report also provides insights into key focus areas for beauty retailers and brands looking to boost their online presence. As detailed in the report, the online experience is critical for discovery, research, and replenishment purchases, but omnichannel investment is still paramount for beauty retailers. Brands should prioritize investments based on the priorities of the customers and the categories they play in.
To access the report, Beauty for the Digital Age, at this link:
https://alvarezandmarsal-crg.com/insight/beauty-for-the-digital-age/
Study Methodology
A&M’s survey was fielded in late 2022, polling some 500 U.S. female beauty consumers through an online panel survey. All participants have purchased makeup, skincare, or fragrance products in the last 12 months.
The Alvarez and Marsal Consumer and Retail Group (CRG) is a management consulting firm that tackles the most complex challenges and advances its clients, people, and communities towards their maximum potential. CRG combines the best of A&M’s broader firm's bias toward action and practicality with deep consumer and retail industry experience. CRG partners with businesses across a wide range of categories including Food & Beverage, Beauty & Personal Care, Grocery, Mass Merchandise, and Apparel & Footwear to drive significant performance improvement.
Contact Details
Alvarez & Marsal Consumer Retail Group
David Schneidman
dschneidman@alvarezandmarsal.com
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