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Personalization is quickly becoming a driving force behind the success of beauty brands. The beauty industry has established itself as one of the most dynamic and fragmented industries, and competition remains stiff as new brands constantly seek to enter the rapidly evolving market. According to Euromonitor, more than 25% of all brands launched in the fast-moving consumer goods space have roots in beauty or personal care. Brands therefore constantly need innovation and development, both as a means of differentiation and to respond to changing tastes across consumer loyalty, product and discovery.
Social media’s role in the consumer discovery path is contributing to some of the behavioral changes that are fueling competition between competitors in the beauty industry. According to the Vogue Business Beauty Index, while traditional discovery methods such as word of mouth (34 percent), department stores (20 percent), and traditional media (20 percent) remain important, social media is leading the way in beauty discovery. 39 percent of consumers cite this as their preferred purchasing route. However, the power of social media is exposing consumers to an increasingly wide range of beauty brands and products, prompting a shift away from loyalty around brands, formulas, and ingredients.
Additionally, 40% of the brands featured in the Vogue Business Beauty Index were founded in the past 10 years, highlighting an industry that has evolved within and benefited from the digital revolution. As a result, competition within these digital environments has increased, and staying in the spotlight continues to be a challenge for brands. Maghan McDowell, Senior Innovation Editor at Vogue Business, highlights the importance of personalization in building a successful digital strategy. “People get overwhelmed when shopping online, so the only way to truly break through is through personalization,” she says.
According to the Vogue Business Beauty Index, 83% of beauty consumers make more than half of their beauty purchases online, but beauty e-commerce is largely siled, with direct-to-consumer sites or multi-brand operates through e-commerce. -Tailor. Traditional siled systems mean brands and retailers may only see part of the consumer purchase experience, rather than the entire nine yards. By understanding how beauty customers shop across brands and product types, retailers like Amazon Beauty can tailor experiences throughout the customer’s shopping journey. “It’s an incredible feeling knowing that a site recognizes me and remembers what I like, so I naturally want to stay there,” McDowell says of the benefits of a customized experience. I’ll talk about it.
Cater to mobile consumers
Amazon Beauty profiles three types of beauty consumers: One is the replenishment consumer who values efficiency, speed, and convenience. Brand enthusiasts are well-informed researchers about the brands and products they love. and explorers who are most interested in diversity, excitement, and discovery. These customers exhibit different habits depending on the type of beauty products they purchase. That is, the same customer may be a replenisher when purchasing skin care, but an explorer when purchasing color cosmetics. For brands, this level of detail ensures that each unique product recommendation reaches the right customer at the right point in the purchase journey, ensuring that every customer visiting Amazon Beauty is tailored to their individual habits and preferences. You can get a different experience tailored to you. Melise Del Rey, general manager of beauty, baby, and beauty technology for the US Amazon store, touched on this strategy in her opening remarks at the Vogue Business x Amazon Beauty Dinner held at Soho House in New York. “We are focused on ensuring that product recommendations reach the right customers at the right time in the shopping journey, from the homepage to checkout,” she told other attendees.
