Somewhere in a parallel universe: It has been 365 days since the pandemic was officially announced in March 2020, and Juana has not ventured out since nor met another human out of the fear of contagion that surrounds her. Living in isolation has changed every day routine. Her days used to begin with a beauty care routine which was her favorite part of the day. Come May 2020, she used up the last of her products and the idea of placing order for replacement was trashed at the thought of human contact. She often dreams of the days when she used to turn to retail therapy and salon pampering to unwind and treat herself. “Those were the good old days” she thinks and breaks herself from her reverie.
What were those good old days like? Let’s look at them.
Shopping of beauty-care products (products related to skin care, color-cosmetics, haircare, fragrances and personal-care) was considered a very personal choice as everyone’s perception of beauty can be different. This is why it was deduced that people enjoy experiencing beauty related products with their sense of touch, smell, and sight. This was considered crucial to the whole decision-making process. Beauty companies incentivized visit to their stores, and they invested in making the entire experience worthwhile. Be it in terms of in-person beauty expert assistance, product trial events, or makeovers as giveaways etc. People did enjoy the experience of trying out new samples and interacting with beauty consultants in the stores which made this a crucial part of the journey that converts a prospective buyer to a brand loyalist.
We look at Juana’s cosmetic shopping journey and the challenges she faced while she shopped for daily wear foundation. Her previous experiences had resulted in her using a foundation two shades lighter than her skin tone as she was unable to understand how to pick a foundation shade and not many brands out there had a shade nearing her skin tone. When BBeauty (a leading Beauty Brand) arranged one such makeover camp before the summer holidays, it was the perfect opportunity for Juana to seek answers to her problems. Clara, her beauty advisor at this camp advised Juana on different skin types and which one was hers, and how the time of the day affected her skin, which product suits her unique skin conditions and how to select a product for best effect for day and nightwear. This is how she came across BBeauty Foundation Naturale shade which not only suited her skin tone but even brought in compliments on her skin from her colleagues & friends. Ever since, she became a BBeauty loyalist and shared glowing reviews on the brand in every forum.
Statistics of the era also pointed to the same. McKinsey reported that in major beauty-industry markets, in-store sales accounted for up to 85 percent of the total sales in this segment before the pandemic. Even online-savvy millennials and Gen Zers who typically buy their products online, preferred to buy their beauty products in stores. Around 60 percent of the purchases from this group happened in stores.
According to a survey of 1,000 consumers conducted by Digital Commerce 360 and Bizrate Insights in August 2020, it was found that the biggest hurdle in online sales of beauty-care products is that consumers strongly prefer to test cosmetics in person and are reluctant to buy them online. 46% of consumers said that they want to see beauty products in person. 18% look for advice from an in-store expert.
And one fine day, when the world came to a stop and the rules of the game called “routine” changed and people were are asked to avoid all contact with rest of the world, the system collapsed. Where would you find beauty in isolation?
Switching back to our universe: Let’s see how Juana found her beauty routine in reality and what measures the Beauty industry took post March 2020.
When the Covid-19 pandemic hit the world in 2020, the consumers and the industry were not prepared to change the mutual physical relationship and moving to a complete online shopping experience.
Effects of the pandemic on human behavior and challenges for beauty industries:
For business involved in beauty care products, business continuity was a daunting challenge during the pandemic. They now had to look for ways to serve the consumer who was now home bound and was making trips outdoor for only the essentials.
For a consumer, stepping into a retail experience store no longer a necessity.
Moving to an online presence as an e-store couldn’t be instantaneous nor fruitful unless the business has thought about some important aspects like-
- How to set up an online DTC (Direct To Consumer) store?
- How to move marketing from banners and gondolas to emails, texts, notifications, and tweets?
- How to emulate the experience of the brick-and-mortar stores in a digital store?
- How to address to consumer queries and apprehensions?
The pandemonium released by the pandemic and immediate effect on beauty:
Flashback to the month of March in 2020, it has been 2 months since Covid19 has been in the news, but no one really knows what to make of it. Over the next few months, people adapt to the situation and prepare to live a new normal. Their lifestyle habits, purchasing habits, the definition of what it means to stay beautiful while confined to their homes itself underwent a change.
Applying makeup and fragrance was lower in the list of priorities for people as they started working from home or even when they stepped out wearing masks and maintaining physical distancing.
When McKinsey & Company studied global consumer spending intent during the two weeks of April 2020 when the pandemic was reaching its first peak, the Beauty products were seen to be taking the hit from the newly changed consumer sentiment.
The changes in the lifestyle patterns led to a shift in priorities worldwide for both businesses and people in everyday life. More and more consumers focused on spending on essentials. Delivery of essential products hence became an immediate priority with businesses and delivery partners prioritizing the same. Due to this, Beauty companies saw the impact in terms of lesser and lesser people opting to pay in-store visits. Beauty consultation appointments were reduced in number.
Quoting a McKinsey report: In China, the industry’s February sales fell up to 80 percent compared with 2019. In March, the year-on-year decline was 20 percent—a rapid rebound under the circumstances. In a variety of markets, consumers report they intend to spend less on beauty products in the near term (largely driven by declines in spending on color cosmetics) but more than they will in other discretionary categories, such as footwear and clothing.
What did the Beauty industry do in this constantly changing environment?
The businesses were not prepared to face the implications of complete lockdowns and stay at home orders by the governments. Brands could not contemplate a closure of their business; this was even more prominent for the family run and small-scale business. Re-evaluating how to serve customers in such times was the need of the hour.
The industry devised strategies on multiple fronts, not just to react to the threat but to adapt and emerge stronger.
Beauty businesses assessed their current standing, sensed the threats and opportunities, and responded accordingly mainly in three broad strokes:
- Control
- Calibrate
- Continue
Control:
When it was first announced that the virus could stay active on inanimate surfaces for as long as 9 days, it created fear and confusion among consumers as to what surfaces are safe to touch and what products should be avoided. In order to stop the fear from compounding and misinformation causing further losses, beauty companies took measures to be transparent about the safety guidelines being followed by them. Safety guideline statements were shared on both digital and offline channels. Videos with stores and manufacturing units following the new safety standards were shared. The focus on employee health was highlighted.
Example: https://www.neutrogena.com/covid-19-update.html
Companies also started to look for avenues to cut costs and maintain their presence. They leaned on bill deferment, eliminating non-essential spending, reducing payroll expenses and investing in affordable marketing and manufacturing processes.
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