Online beauty sales are proliferating, thanks to the widespread adoption of internet access and mobile devices, as well as social media engagement (which is central to much of the e-commerce experience). The online beauty and personal care market are set to grow at an annual rate of 6.6 percent between 2017 and 2022, reaching $57 billion by 2022.
Within this overall market, the Asia Pacific region will see the highest growth rate, while North America and Western Europe will remain the most important regional markets. Here’s what you need to know about how the beauty marketplace changes if you want to get involved in this exciting new industry.
Different innovation models in the beauty marketplace
There are a few different innovation models of beauty marketplaces.
The first is the direct-to-consumer model: The direct-to-consumer business model is an online retailer that operates by selling to customers directly rather than through brick-and-mortar establishments, wholesalers, or online marketplaces like Amazon or Etsy. Distributors and the majority of the conventional supply chain are bypassed, and all sales are made straight to the brand. Brands sell their products directly to consumers through their channels.
The second is the indirect-to-consumer model: where brands sell their products to retailers, who then sell them to consumers.
When middlemen or intermediaries are present in the distribution channel, indirect distribution takes place.
Third is the online-offline platform model: This model combines the online marketplace with offline product display.
A business technique known as online-to-offline (O2O) commerce encourages consumers to visit real stores to make purchases. Online-to-offline (O2O) commerce uses a number of techniques and strategies to persuade clients to leave the online environment after first identifying them there, such as through emails and Internet advertising. The strategies employed in this kind of plan are a combination of those used in traditional marketing and those used in online marketing.
Beautysourcing.com practices the online-offline platform model. It is a marketplace platform that hosts and sells beauty wholesales products.
Because it has more than ten years of professional expertise in the cosmetics industry, it selects every supplier with skill and rigor. Additionally, it is a lateral business-to-business market. The platform can stay up to date with the newest trends in beauty supply chain industry.
Beauty Marketplaces are here to stay
With the rise of e-commerce, it was only a matter of time before beauty marketplaces became a thing. And now that they’re here, they’re here to stay. If you’re unfamiliar with beauty marketplaces, they’re online platforms that allow you to buy and sell beauty products. Think of them as the Beauty sourcing, eBay, or Amazon of the beauty world.
Also, sites like Revolve or The Hunt have been around for years, but in recent months new places have popped up in droves, like StyleSaint or The Black Market. They’ve made waves because people are always looking for new ways to shop for beauty deals, and these sites offer an affordable way to try out new brands without committing. But what does this mean for the future of retail? And how can brands best use this trend?
A business technique known as online-to-offline (O2O) commerce encourages consumers to visit real stores to make purchases. Online-to-offline (O2O) commerce uses a number of styles and strategies to persuade clients to leave the online environment after first identifying them there, such as through emails and Internet advertising. The method employed in this kind of plan combines those used in traditional marketing and those used in online marketing—the ability to try out new products before buying them.
Third, several reports show that cosmetics have become the largest retail category among women, with total sales reaching as high as 34 billion dollars. Finally, we’ve seen this summer that prestige cosmetics companies like L’Oreal have taken notice of the trend by launching initiatives to target millennial shoppers.