Market and trends
The cosmetics market was unprepared for the pandemic just like many other industries that traditionally focus on offline sales. Before the COVID-19 outbreak online shopping accounted for only 15% of beauty product sales in the US, so the shot down of offline cosmetics stores could not pass unnoticed. This situation especially affected brands that don't have their own online store.
The full power of self-isolation was felt by the companies that sell their products to the beauty salons for professional use and through them for personal use.
Some brands put their new launches on hold, especially if they planned to sell their products mainly through the offline-retailers and to use events as a promotional channel. Mass cancellations of new launches negatively affect the total revenue of the industry as well, because new releases are a very important sales driver.
However, cosmetics sales are declining slower than clothing sales. According to Skypad, in April 2020 (in comparison to April 2019) clothing sales in the US decreased by 40%, and cosmetics sales --- by 30%.
During the quarantine, people need less clothing and makeup but the consumption of cosmetic care products and personal hygiene items, which are also included in the category, is growing.
Factors that affect the industry positively
- Demand for at-home beauty treatments as a replacement for salon treatments;
- More time for skin, body and hair care;
- Ability to use products with active ingredients due to spending less time outdoors.
Factors that affect the industry negatively