Workers retrieve containers at an Amazon achievement heart on Prime Day in Raleigh, North Carolina, U.S., on Monday, June 21, 2021.
Rachel Jessen | Bloomberg | Getty Images
Amazon plans to maintain a beauty products event in October in an effort to lure early holiday shoppers and enhance the corporate’s place in a booming class, in accordance to paperwork reviewed by CNBC.
A slide deck Amazon despatched to choose beauty manufacturers stated the corporate is at the moment planning the event for Oct. 4 by Oct. 25. The similar data was despatched to some consulting companies that assist handle companies on Amazon.
“We want to draw customers back to Amazon during Black Friday week but also long term with additional marketing levers,” Amazon wrote within the slide deck. “This is a unique opportunity for selected brands to reach both more shoppers and new customers.”
Catie Kroon, an Amazon spokesperson, confirmed the authenticity of the doc. She advised CNBC by e mail that the event subsequent month will probably be known as “Holiday Beauty Haul,” and added that the positioning will function a variety of product varieties, together with perfume, males’s grooming and winter skincare.
Amazon, the world’s largest on-line retailer, has lengthy been attempting to achieve a greater share of the worldwide beauty market, which generates $500 billion in annual gross sales. The firm started providing well being and beauty products in 2000, however its choice was initially restricted largely to mass-market manufacturers.
The beauty market is of explicit curiosity now, as customers have flocked to the online to purchase make-up and private care gadgets in the course of the pandemic. Online make-up gross sales surged 40% in 2020 from a yr earlier, whereas gross sales of “self-care” gadgets like shampoo, face wash products and lotions climbed 59%, in accordance to market analysis agency 1010data.
Amazon hopes to use the event to drive site visitors to upcoming holiday promotions, stated one marketing consultant, who had discussions with Amazon and requested to stay nameless as a result of the talks have been personal. The firm started reaching out to beauty manufacturers and consulting companies in mid-August to gauge participation within the event, stated Jed Rawson, CEO of e-commerce consulting company Pirawna.
While largely caught in the course of the 2020 holiday seasons, Americans spent a document sum of money from their gadgets, in accordance to Adobe Analytics. U.S. on-line purchases throughout November and December surged 32.2% from a yr earlier to $188.2 billion, Adobe stated
In current years, Amazon has expanded its “premium beauty” subcategory to embrace extra high-end products and launched an indie beauty retailer to spotlight new and rising manufacturers. It additionally rolled out specialised haircare sections and its personal skincare model.
Kroon stated beauty is one of many fastest-growing classes on Amazon, and that it is “ripe for innovation” when it comes to product discovery and presentation. Amazon is “uniquely positioned to reinvent” the expertise of shopping for beauty products on-line, she wrote.
The October event might additionally assist Amazon higher compete with retailers like Ulta Beauty and LVMH-owned Sephora, stated Elaine Kwon, who beforehand served as a vendor supervisor in Amazon’s trend class and now runs consulting agency Kwontified. Department shops are more and more dropping share within the beauty market to Ulta, Sephora and direct-to-consumer manufacturers like Glossier and ColourPop.
Kwon stated Amazon has tried to enhance its market share by that includes extra main manufacturers on its website and experimenting with options like a “clean beauty” tag, which faucets into tendencies round pure and sustainable products.
“Sephora and Ulta have very, very successfully protected their customer base,” Kwon stated. “This is Amazon’s way of trying to reach out to those customers and give them a great experience that makes them think, ‘Maybe I don’t have to go to Sephora for all of these things, maybe I can go to Amazon for this or that.'”
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