E-commerce: luxury beauty market is recovering

 

Thanks to e-commerce facilities, the luxury beauty market is on the way to recovery despite the ramifications of the coronavirus pandemic. Indeed, more people are now purchasing cosmetics, perfumes and skincare products on the Web.

The Covid-19 pandemic has led to lockdowns happening in many countries across the world and this has, as expected, affected the retail sector, including the prestige beauty area. In 2020, Euromonitor International predicted that there will be a decline of 18% in the global luxury goods market. This involved beauty items and fragrances as well. However, the market research company NPD Group has recently conducted a study which reveals that the most important beauty markets in Europe are showing signs of recovery.

In the first half of 2020, the UK saw a drop of 37% in sales with regard to this particular sector. Nonetheless, by the end of October, there was a rise in transactions covering skin care, body care, makeup, fragrance and men’s grooming products. The total recorded reached 543.9m.

According to the NPD Group, a huge part of this increase could be attributed to the fact that brands have moved online. As from January to the end of October 2020, e-commerce accounted for 41% of total prestige beauty sales. In 2019, only 21% was recorded for the same period.

 E-commerce is driving the recovery of the luxury beauty market © Royalty-free image


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