In the UK, e-commerce growth in the personal care category has been fast, with new collaborations between prominent retailers like THG and Cult Beauty and delivery partners like Boots and Deliveroo offering an even more customized and convenient shopping experience.
According to GlobalData, e-retailers’ cosmetics and toiletries market share in the UK increased by 42 percent from 10% (£1.2 billion) in 2019 to 14% (£1.7 billion) in 2020, making it the second largest channel for beauty and grooming sales behind hypermarkets and supermarkets.
“In the United Kingdom, the COVID-19 epidemic has functioned as a catalyst for changes in the personal care retail sector. Consumers who were previously unwilling to buy online for things they would have purchased in a physical store have been forced to do so due to new circumstances. “Even with the limits gone, the seamless omnichannel shopping experience has converted many of those customers,” said Nina Nowak, Senior Researcher at GlobalData.
H2 Replacing the in-store experience in a cost-effective manner
According to GlobalData’s 2021 Q1 consumer survey, 80% of UK customers said that how well a product or service corresponds with their time and money restrictions impacts their product decision either always, often, or sometimes.
“Advanced digital tools and applications that enable customised product selection based on a consumer’s’selfie’ image are effectively replacing an in-store experience.” “The increased range of delivery options helps busy customers adjust themselves, saving them time and reducing social contact,” Nowak concluded.
When questioned about the major benefits of buying products online versus going to a shop, UK consumers cited convenience (64 percent), time savings (48 percent), minimum social contact (43 percent), variety and choice offered (36 percent), and lower pricing (32 percent) as the top reasons.
H2 The expansion will continue.
Despite the fact that the adoption of e-retailers for beauty and grooming is expected to stall, the data and analytics firm predicts positive development, with a compound annual growth rate (CAGR) of 4.1 percent from 2021 to 2025, resulting in a predicted value of £2.1 billion in 2025.
“E-commerce provides for almost limitless customisation, which is a critical component of successful personal care sales tactics. Retailers may follow the customer journey from the first interactions on the website to the final transaction using modern e-commerce solutions. This allows firms to generate personalized adverts, recommendations, and pricing discounts to strengthen their customer relationships,” said Nowak.
“Consumers’ buying habits may have permanently altered, with old methods of purchase becoming obsolete. Longer lockdowns and social distance limitations have resulted in a permanent shift toward e-commerce in a variety of industries, including beauty and grooming. “This shift should serve as a catalyst for personal care companies to refocus their strategies toward increasing their online presence, with brand and store discounts at the forefront, as well as offering customers with a personalized purchasing experience,” she added.
