Online Buying Power Extends Strong Arm to Beauty Products

Bob Tedeschi of the New York Times reports on the growing popularity and efficiency of online sales in beauty. He uses L’Oreal and Bloomies as a case study, and these are obviously big guns, but the trend can be applied to retailers of all sizes. Overall, sales have increased by 22% in the past year, and Forrester Research predicts that sales in the beauty category will go up 25% this year – higher than the average for online retail (18%).

And these are just the numbers. Women are indeed spending more money online, but the article also mentions that “new-generation technology is making it simpler for consumers to evaluate products, including cosmetics, on the Web.” The proliferation of product reviews, by real people (we hope) enhances the e-commerce experience. When more third-party information is available, people feel more comfortable with that final click because they feel like they really know what they’re buying.

In addition, as Allison Slater, the VP of marketing for Sephora, pointed out, the Internet allows for more personalization of services, like product recommendations. "Once we know a client's preferences, we can speak to them more effectively about what they want," she says.

And, more and more, they’re showing that they want single-brand websites. Sephora.com is the only exception, but then again, they do have their own brand that they’re working hard to promote. But the shutdown of Gloss.com – an online partnership between Estee Lauder, Chanel, and Clarins – has shown that many consumers prefer to shop on brand-specific websites.