As cosmetics and personal care companies grapple to steady their businesses during the Covid-19 pandemic, what steps can be taken to safeguard for the future?
Beauty brands and companies around the world are in the midst of what for many will be the most challenging business environment of a lifetime.
Faced with consumers living within constraints of 'the new normal', cosmetics and personal care companies have to adapt or face the consequences of reduced footfall in their own or partner retail locations, waning shopper confidence and unprecedented ways of working.
Global Covid-19 confirmed cases now total 861,305, according to John Hopkins University, with the hardest hit countries being the US, Italy, Spain, China and Germany.
But how can beauty brands and companies ensure their businesses stand a fighting chance when life finally makes a return to normal?
Here, Simon Murray, Brand Manager at The Red Tree, the UK’s leading international beauty brand consultancy, talks to Cosmetics Business about why the time is now to reassess retail and digital strategy, and why sitting back for the storm to pass could lead to failure.
Do you have any insight into how small to medium-sized beauty companies have been impacted by the Covid-19 outbreak?
We know that small to medium-sized beauty companies have already or will be hit particularly hard.
We have seen initial forecasts that indicate that up to £12bn may be lost from UK retail spend in 2020, a chunk of which will be beauty.
On a larger business scale, Coty have predicted a 20% decline in their Q3 net revenue.
But, there are some positives. We know of brands that are experiencing incredible sales growth online and this has to be a key focus for moving forward.
What types of beauty brands might be experiencing a particularly difficult time sales-wise right now?
Brands that rely on bricks-and-mortar for the majority of their business are going to take a hit while store closures continue.
Categories such as make-up will suffer as people work from home and aren’t socialising.
On the other hand, there will be beauty lovers who want to look and . . .
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