New DataWeave Beauty Report Finds Over a Third of SKUs Increased in Price in April 2022, 10 Times the Number of Price Increases in April 2021 • Online Demand Strong Amid Challenges • Top brands offering more low- and mid-price products • Strengthening Digital Brand Presence Is Key to Improving Sales
DataWeave, a global leader in retail data, pricing and AI analytics, today released its report Optimizing Online Beauty Sales in a Changing Business Environment . In an analysis of some 200,000 SKUs, the research examines how brands and retailers are adjusting their pricing in an inflationary environment as they work to stay engaged with an increasingly price-sensitive consumer. The study digs deep into what’s driving price and explores the strategies that helped some beauty e-retailers and brands succeed during the period from April 2021 through April 2022, as consumers started returning to stores.
DataWeave’s Beauty Retail report analyzes prices, availability, assortment, and discoverability by brand, category and retailer in light of inflation and market-driven economic changes. “Despite supply chain disruptions, shifting consumer demands and persistent inflationary trends, many retailers fared well during this period. While increased production and shipping costs forced most beauty industry players to raise prices on many of their products, smart tech investment and a firm eye on the changing pricing needs of the American consumer have helped top brands and retailers thrive during the period we examined,” said Karthik Bettadapura, CEO of DataWeave. “We will continue to watch the Beauty sector closely, as it may serve as a bellwether for inflationary trends across the retail value chain.”
The report analyzed 1,500 brands at 13 top performing beauty e-retailers, finding that on average, more than a third of SKUs examined saw raised prices in April 2022, compared with only 3.5 percent back in April 2021. Additionally, top beauty brands have been expanding their range of low- and mid-price offerings. DataWeave analysts predict that these trends are likely to continue as price increases across consumer categories push buyers to make choices in how they spend in the months ahead. With the skincare category in particular on the rise as U.S. beauty shoppers choose skincare products over cosmetics, the report authors suggest that retailers prioritize their skincare inventory.
“Availability and affordability were buzzwords for top beauty brands, who maintained superior in-stock availability through 2021 and into 2022. Across the major beauty brands and retailers we analyzed, the defining trends we identified are a shift toward producing more low and mid-tier items and an expansion of investments in tech-driven consumer marketing,” said Krishnan Thyagarajan, president and COO of DataWeave.
To come to its findings, DataWeave analyzed 200,000 SKUs, tracking price variations, stock availability, and product assortment changes across 1,500 brands at 13 top performing beauty e-retailers, over the period April 2021 to April 2022, noting price variations, stock availability, and product assortment changes.
DataWeave is a leading provider of advanced sales optimization solutions for e-commerce businesses, consumer brands and marketplaces. The AI-driven proprietary technology and language-agnostic platform aggregates consumable and actionable Competitive Intelligence across 500+ billion data points globally, in 25+ languages, with insights to drive performance for more than 400,000 brands across 1,500+ websites tracked across 20+ verticals and ensure online performance is always optimized. Learn more about the power of big data and global level analytics in understanding the rapidly changing retail industry at DataWeave.com.
Meir Kahtan Public Relations, LLC (MKPR)