According to the new prediction, online shares of beauty sales will increase 23% by 2023
Alibaba, Amazon, JD.com and Pinduoduo will soon account for 65% of health and beauty online sales, according to a new prediction.
Retail Insight, the research and data arm of e-commerce giant Edge by Ascential, expects online shares of health and beauty sales to grow globally by more than 16% by the end of 2020, increasing to 23% by 2025.
As a result, analysts predict Alibaba will achieve the greatest share of health and beauty e-commerce with sales of more than US$43bn, followed by Amazon with sales predictions expected to grow to almost $28bn.
“With Covid-19 driving increased demand for health and beauty products, many retailers are planning further inroads into the category via enhanced online services and product lines,” said Florence Wright, Senior Retail Analyst at Edge by Ascential.
“However, as department stores experience a -10.9% fall in growth in 2020, more beauty brands will be forced to diversify and focus on investing in online to expand reach and boost growth.
“The rapidly developing digital outlook, coupled with the growing dominance of online players like Amazon and Alibaba, highlights how crucial it is to enhance omnichannel offerings and online capabilities.”
Earlier this year, Alibaba rolled out a new programme with the aim of ramping up the amount of international brands sold on its.
Over the next 12 months, the Chinese e-commerce goliath has set out to bring on 1,000 brands.
Meanwhile, Amazon’s success during the Covid-19 lockdown has sparked fresh concerns with pure-play beauty retailers.
According to a survey by British marketing agency Molzi, seven million consumers bought beauty products from Jeff Bezos’ site for the first time.
Speaking to Cosmetics Business, Louise Evans, Molzi’s Head of Fashion and Cosmetics, and Amazon’s former Associate Vendor Manager, said that there was “clearly” an appetite for Amazon’s among consumers.
“Research shows the convenience of having products delivered quickly and cheaply, direct to consumers’ front doors, is hugely appealing,” she said.
“In a post-Covid-19 world where hygiene remains paramount, avoiding crowded high streets and touching products will likely be an ongoing issue Amazon can address for businesses and consumers alike.”
Retail Insight also reported amazon.com’s May sales of beauty and personal care products and health, and household items listed saw a 141% boost.
Read more about Amazon’s beauty strategy via the link below.