Online Exclusives

The Next Big Thing in Beauty Shopping

Online? Offline? A combination of both? Retail experts weigh in on what works and what’s next for the cosmetics industry.

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By: TOM BRANNA

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Wendy Liebmann, Ali Kole and Michelle L. LeBlanc at Cosmoprof Las Vegas.

Looking for eyeshadow? Shop Amazon. Need a lip butter? Try Sephora. For skincare, head to Macy’s.

Loyalty is fleeting for most beauty shoppers, notes Wendy Liebmann. The founder, CEO and chief shopper of WSL Strategic Retail says consumers are buying things in many more places these days—they visited 13.3 online and offline destinations in 2023, up from 11.9 in 2021.

And where are they making purchases? Online, mass merchandisers, supermarkets, drugstores, convenience stores, specialty stores, home improvement stores, warehouse clubs, deep discounters, specialty food and, of course, specialty beauty.

“Their shopping universe spans the gamut from big boxes to Blue Mercury,” noted Liebmann. “People are willing to shop in many more places than they have ever done before.”

Liebmann led a panel devoted to social beauty shopping during Cosmoprof Las Vegas in July. Joining her on stage were Ali Kole, former head of premium beauty, Amazon, and Michelle L. LeBlanc, VP-beauty/personal care and Hispanic Center of Excellence, CVS.

Gen Z Buying Habits

In her opening remarks, Liebmann noted that shoppers, especially younger shoppers, embrace new retail channels. For example, while 27% of the general population purchased product from a brand website in the past three months, 37% of Gen Z shoppers made a DTC purchase, according to WSL data. Similarly, 39% of Gen Z and 31% of Millennials purchased from social media, compared to just 24% of the general population. And while just 8% of consumers made a livestream purchase, 17% of Gen Z did, according to WSL.

“And yet, stores still matter,” insisted Liebmann. “But their expectations are different: 40% of shoppers say they shop in store because ‘it makes me happy.’”

According to WSL data, 63% of those surveyed said they use stores to stock up and make quick trips, too. At the same time, 19% go online to stock up and make quick trips mostly online, and 17% stock up and make quick trips equally in store and online.

What’s New in Beauty & Where to Find It

Clearly, experience matters when it comes to brick and mortar.

“For beauty, the physical store is still the most important place where shoppers want to learn what’s new,” insisted Liebmann. “So yes, social shopping is important, but it doesn’t mean the end for physical stores.”

That’s because the store means more than a place to buy. WSL found 46% of respondents discover new products and services in-store, 43% said they found more “products in my culture” and 42% use shopping time in-store to socialize.

According to WSL, the store is the most important channel for finding out what’s new in beauty. When consumers were asked, “How do you find something new in beauty,” they said:

• 35% browse store shelves;

• 33% talk to friends and family;

• 32% look at displays in store;

• 23% watch TV ads;

• 19% check beauty brand websites;

• 18% follow beauty influencers.

Retail Experts Explain What Works in Beauty

Kole, whose career includes stops at Sephora and LVMH, recently left Amazon for private equity to help brands and investors better navigate the online world.

“When I was at Sephora, the retailer was the beauty editor—in fact, Sephora was called ‘the beauty authority,’” she recalled. “The rise of social media has transformed the role of instore beauty associates. Dermatologists have personality. Even high school students can become online experts. We’re seeing more diverse perspectives.”

LeBlanc noted that consumers still want to touch and feel products, but social shopping gives them another way to engage with products.

“Social media adds community, influencers humanize the shopping experience,” she explained. “But we don’t talk about silos and channels anymore; consumers may find something online and 48 hours later, they’re in the store buying it.”

Wendy Liebmann

But can social media drive luxury purchases? Absolutely, said Kole, who noted that premium really means “covet-ability.”

“Instagram is all about, ‘here it is…don’t you want?’” she noted.

But social media can drive lower-priced beauty sales, too. If shoppers aren’t willing to spend $200 for the latest skincare formula, they may opt for an ELF lip oil touted by an influencer.

Social media helps marketers find new shoppers, too. Socially-native companies know how to reach consumers with an assortment of beauty and wellness products, according to Kole.

“It is compelling to remember that it once took a lot of money to be noticed by key retailers,” recalled Liebmann. “Now, social can help.”

And while social media may skew younger, the channel is very democratic, explained LeBlanc.

Beauty & The Misinformation Beast

“Beauty is so inclusive, there is representation across the board,” she noted. “But you know what keeps me up at night? Misinformation. Sun protection is so important, but there is so much misinformation on social media targeted to younger media.”

But at the same time, social media enables companies to demonstrate product efficacy. Videos that illustrate how products affect skin and hair over time are very compelling.

“All these channels are tools in the beauty industry’s tool kit,” said LeBlanc. “CVS has 9,000 stores that enable connections and let consumers touch products. All the channels work together.”

Liebman recalled that Sephora created an inclusive ecosystem, and Kole agreed, noting that shoppers often walked Sephora aisles, and ordered products through their phones.

“Technology lets you meet your needs at that moment, with curated lists, virtual try-ons and personalized experiences,” said Kole.

The Future of Beauty Purchases

If today’s shopping experience is an amalgam of online and offline, what’s next? The speakers agreed that the beauty industry is in the early stages of personalization—with much more to come.

“We all need community, but technology separates us,” insisted Kole. “Can you make brand ambassadors out of your most loyal customers? Superfans can inspire loyalty and influencers have become everyone’s new friends.”

Superfans can combine a human connection with convenience, personalization and the right amount of tech, enabling cosmetic companies to enjoy a high ROI, said Kole.

And yet, this ecosystem is still fraught with potential pitfalls. Retailers and their partners have more responsibility to combat misinformation brought on by artificial intelligence, misinformation and altered images, explained LeBlanc.

“Stores still have a human element with trained beauty experts in-store,” she noted.

Finally, when navigating this new beauty retail ecosystem, the speakers agreed that authenticity remains key regardless of the channel.

“The first thing is to know what you are about,” insisted Kole. “Have clarity about why your brand exists. Have an iron-clad crystal-clear view. Social media is just another way for people to find you. It all starts with the product itself. Get that right first—the rest is communication.”

And…have fun!

“We have permission to be fun with consumers on so many levels,” said LeBlanc. “We’re not selling cough syrup. It’s all about fun and discovery.”

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