- Decrease in purchasing power due to the uncertainty of the future financial situation;
- A traditionally high share of offline sales due to customers' needs to test products or to get a professional opinion;
- Distrust of unknown market players (fear of fakes);
- Decreased demand for makeup (mascaras, foundations, etc);
- A more pronounced decrease in the demand for some product categories (for example, sunscreens).
Tips:
1. Brands should create their own online stores and motivate customers to use them
The main advantages of this approach are higher sales margins compared to sales through intermediaries and the ability to create a customer database, so their loyalty could be maintained through email newsletters and personalized offers.
Here are the examples of potential advantages of brand-owned online stores over intermediary stores for the customers:
- special discounts, including the ones for leaving contact information on the website;
- exclusive products that are available only in the brand owned store (limited collections, sets, bundles, refills);
