Direct To Consumer Makeup Industry

In last month’s article we talked about shopping for makeup and beauty products online while covering a few best practices. From return policies to online influencers our post, “What to know when Shopping for Makeup and Beauty Products Online” was hopefully helpful to online sellers. Now, a closer look at cosmetics marketing and industry trends for 2020 provides useful insight to your online e-commerce store.  Among the fastest growing categories for consumer products is the direct to consumer makeup (DTC) market. 

Popular makeup brands that your mother’s and grandmother’s would still recognize like Avon, Oil of Olay, Estee Lauder, Chanel, L’Oreal and, of course, Madeline continue to lose market share to new makeup products. Millennials, or Generation Y, along with Generation Z, or Zoomers, are seeking out newer cosmetics fueled by online influencers. Traditional large-scale makeup and beauty product manufactures are meeting the influencer trend. They are doing so by acquiring independent labels but that doesn’t mean the worst for online shoppers. 

Online Makeup and Beauty Sales, the COVID-19 Affect

Long before the world-wide pandemic, direct-to-consumer health and beauty products were winning with new innovative cosmetics and online celebrities.  Online influencers, responsible for millions in sales, had already proved that the traditional in-store experiences were not a requisite for finding beauty products. Brands like ColourPop, Sephora and Ulta were expanding into broader product categories while reality stars like the Kardashian’s KKW Beauty and Kylie Cosmetics maintained the buzz of the industry. COVID-19, however, literally shut down the brick and mortar cosmetic industry and further widened the gap for online entrepreneurs. 

Because of COVID-19 indie cosmetics, makeup and beauty products, have continued to grow. That growth underscores the DTC markets with increased opportunity. E-commerce sales continue to grow with the help of fulfillment companies. My Fulfillment Company works with online sellers to ensure inventory, shipping and tracking are processed in a professional, trustworthy manner. As you consider a distribution model and its resources working with a fulfillment company that understands the industry is mission critical. 

Only a short time ago, back in 2019, it was reported that the major cosmetic manufacturing giants like L’Oreal, Estee Lauder and Procter & Gamble, among a few others mentioned earlier, ruled the industry with more than 80% of sales. Today, almost a year into the pandemic, COVID-19 restrictions force brick and mortar stores to either alter their hours or sale by appointment. Online sellers must take advantage of the DTC trends buttressed by the unfortunate limitations of a world-wide pandemic. 

In addition to this blog, you may also find our post, “Selling Beauty Products Online? Why a Fulfillment Company Should Help with Operations,” helpful as plans and strategies for the new season are considered. Inventory, shipping and the time-consuming practice of order fulfillment is our business, we hope these articles serve your business well.