The global beauty industry
The global beauty industry is worth 532 billion dollars and is expected to reach a value of 863 billion dollars by 2024. On a monthly basis the average woman spends 313 dollars on beauty products. Especially skincare is one of the most profitable categories within this sector. It has been proven by a statistical report, that 45% of the total sales’ are connected to skincare products. Hairstyles, makeup and manicures are also very popular products within the beauty industry.
The greatest trends of the beauty sector
82% of today’s women believe that social media are driving the trends of the beauty sector.
Many of the consumers are willing to try a number of beauty products to find the best possible solution. However, when the right product has been found, the brand loyalty is extremely high.
Another trend is to produce products without any animal testing.
Organic products and sustainable procedures are the two main winners of the beauty industry.
Additionally, organic products produced to babies and children are a huge trend within this sector. The parents of modern society are willing to pay a high amount of money to make sure that their children are having safe and sustainable products.
Another popular trend is to produce products focusing on reducing the aging of the population.
Beauty products for men are a new and upcoming focus point. 75% of men are still not applying any skincare products. However, the interest among men is continuously growing.
Based on the above trends it is relevant to ensure that your products are differentiated from your competitors. You can differentiate your products by using a dynamic pricing engine and by ensuring a sustainable manufacturing process etc.
The growing tendency of e-commerce
The beauty industry has moved towards the online sector. Based on Amazon’s growth in online appearance on a global scale, many shops have decided to move some of their business online. The online sales of the beauty industry is expected to increase to 23,3% by 2025.
In order to survive in a market, where Amazon is controlling the price point of a huge amount of products, many beauty shops are trying to make their business more efficient.
Best practices and solutions
The beauty industry is based on a high degree of competition. Consumers are everyday facing many different prices for the same product. Therefore, it is crucial that your firm is able to monitor the competitors of the market.
A way to do so, is by applying a price comparison software, such as PriceShape. PriceShape’s software provides you the opportunity to get an overview of competitors data and at the same time you are able to place your marketing expenses more effectively.