Over the past few years, the beauty and personal care industry have experienced exponential growth. However, the novel coronavirus has unsettled global economy, and the cosmetic and beauty industry is no exception. Since the outbreak, consumer spending on beauty products has declined.
Coronavirus has changed virtually everything, but for business in the beauty world, nothing is going to stop them from doing what they are passionate about. On the backdrop of these challenges faced by cosmetic and skincare businesses, it is important that they understand how they are affected and steps to take to reduce the impact on business operations.
Coronavirus and Homemade Beauty Products
Handmade beauty products will feel a moderate impact of the coronavirus due to the varied use of their products. With restricted/regulated movement, isolation, and social distancing, consumers are more interested in personal hygiene products. Products that give consumers a sense of personal hygiene will be high in demand. These products include lotions, home facials, aromatherapy, and essential oils. At the same time, consumers will be more inclined to take their skincare routine seriously due to more time on their sleeves, and what it means to have a glowing skin.
However, the primary purpose of handmade beauty products is to enhance the beauty and outward appearance of consumers. With the economy partially reopened, only a few people will feel the need to leave home for work. Many others are working from home already. The decline in the number of people leaving their homes for work will ultimately result in reduced demand for color cosmetics and skincare products. Other categories that may likely feel the impact include sunscreen, fragrance, makeup tools, and hairstyling products.
Trends to Watch Out for in the Beauty Industry
Forward-thinking businesses will be forced to make changes to their business operations at this time. Some of the trends you’re more likely to see include
- Perfume manufacturers will focus more on producing hand sanitizers, and face wipes to meet up with the growing demand
- A decline in the demand for luxury beauty products will give rise to the demand for personal care cosmetic and skincare products.
- Most beauty stores will take their business online, due to the decline in foot traffic
- With most businesses shut down, there will be an increase in the number of remote workers resulting in higher demand for makeup filters for video conferencing.
- Virtual consultations will increase.
Steps Beauty Industry Can Take to Mitigate the Impact of the Coronavirus
While the effects of the coronavirus pandemic will be felt across every business space including the cosmetic and skincare industry, the good news is that there are many ways to cushion its effects in the near term.
1. Focus on Consumer Needs
During times like this, expect to see a sudden change in consumer behavior. Find out what your consumers need, if you want to stay in business. Adapt quickly to the changes in the business environment to keep your sales and business alive.
2. Interact with your Consumers
Obviously, 80% of your consumers will stay indoors and isolated for a long period of time for the fear of contracting the virus. So how do you reach out to them? Social interaction is the answer. Connect with your consumers by providing live demonstrations through any popular streaming platform. This is one great way to build loyalty.
3. Personal Care and Hygiene
At this point, people will naturally prefer products that make them feel and look good. Focus on products or services that will most likely meet the needs of consumers in this current situation. This may include wellness and self-care products such as essential oils and skincare.
While most consumers are obeying the stay-at-home order, it doesn’t stop them from trying new products. Do you have new products or services you’d like to unveil? Send your consumers trial sizes of the product and see what they can make of it. This will not only increase sales in the near term but also help maintain customer loyalty in the long run. There are a variety of sample containers you can purchase to house your trial products.
5. Take Advantage of Digital Marketing
Consumers are spending more time on their phones, laptops, and in front of the TV. As a result, consumers have the time to digest relevant content. This is the best time to take advantage of digital marketing. Put your brand right in the heart of your consumer by churning out captivating messages and information about your products and services. And if the product advertised will be meeting a specific need at that point, then you’ve gained a potential customer who may end up being loyal to your brand. Promote your businesses online.
6. Strengthen Delivery Service
With many walk-in stores closed, consumers will be more inclined to order online. Handmade beauty product makers should devise a means to deliver products to consumers using other channels. Take your business to your consumers at home.
Check your product inventory to know if you can meet with the demands. Also, consider what ingredients may be challenging to find and look for a perfect alternative.
8. Virtual Consultations
No doubt, In-store experience plays a key role in boosting sales. Most consumers head to beauty retail stores seeking consultations from skincare experts or beauty demonstrations. However, with the current situation, virtual consultation gives consumers the same experience they’d get when visiting physical retail stores. With this, you can guide consumers on the best products that will meet their needs and requirements. Create online tutorials, instructional content, or host video conferencing to maintain in-person customer engagement.
With the coronavirus currently ravaging the world today, its impact is widely felt across all borders. It’s high time business focus on the core needs of consumers in order to stay afloat.
For companies that don’t want to run out of business, the digital space is the place to be. Until a vaccine is created for the coronavirus pandemic, most people will avoid public spaces to limit the risk of exposure to the virus. Many businesses have had to close shops and now turned to digital channels to reach out to their consumers to minimize sale loss.