Best price remains number one motivator for purchase, while personalisation also helps
Euromonitor has revealed what it believes are the four key pillars of digital strategy for beauty companies in today's market: engagement, personalisation, curation and best price.
“In terms of brand engagement, it’s essential to build an appropriate brand image and a relevant online presence,” said Euromonitor Senior Beauty and Personal Care Analyst Ildiko Szalai, speaking in a podcast.
“Personalisation is a rising demand in beauty,” she added. “Consumers are seeking tailored solutions, and digital developments such as virtual try-on digital mirrors and skin analysis are aiding this trend." Retail curation is no longer undertaken only by retailers and manufacturers, said Szalai, but is also strongly influenced by consumer choices; the more informed and engaged consumers would like to see this reflected in the selections in retail environments.
However, the key overriding issue still remains price, noted the analyst. “Euromonitor has found that the number-one purchase motivator online is still to achieve best price and this is especially relevant in the high unit price categories such as premium fragrances or skincare,” said Szalai.
Fflur Roberts, Euromonitor’s Head of Luxury Research, said that when it comes to the luxury beauty sector, content and context are crucial when selling online. Unlike many consumer goods categories, she believe, luxury purchases are often emotionally driven and consumers seek a particular experience when shopping in-store.
“Therefore, luxury brands need to offer inspiration through the incorporation of editorial content and through social media engagement,” she said. For luxury brands, engagement is one way of capturing a luxury audience. Roberts added: “And it’s also important that brands engage with the right consumer, whether that’s based on their age or their income.”
Where consumers are in the world is also key, said Roberts, because their behaviour and motivations in emerging markets are very different from those in developed markets.