Amazon workers load bins with orders on the firm’s achievement heart forward of Cyber Monday in Tracy, Calif.
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Amazon plans to maintain a beauty merchandise occasion 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 present planning the occasion for Oct. 4-25. The identical info 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 informed CNBC by e mail that the occasion subsequent month will likely be referred to as “Holiday Beauty Haul” and added that the positioning will characteristic plenty of product sorts, together with perfume, males’s grooming and winter skincare.
Amazon, the world’s largest on-line retailer, has lengthy been making an attempt to acquire an even bigger share of the worldwide beauty market, which generates $500 billion in annual sales. The firm began offering well being and beauty merchandise 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 web 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 corresponding to shampoo, face wash merchandise and lotions climbed 59%, in accordance to market analysis agency 1010data.
Amazon hopes to use the occasion to drive site visitors to upcoming holiday promotions, stated one guide, who had discussions with Amazon and requested to stay nameless as a result of the talks had been non-public. The firm started reaching out to beauty manufacturers and consulting companies in mid-August to gauge participation within the occasion, stated Jed Rawson, CEO of e-commerce consulting company Pirawna.
While largely caught inside in the course of the 2020 holiday season, Americans spent a report amount of cash 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 merchandise and launched an indie beauty store to spotlight new and rising manufacturers. It additionally rolled out specialized hair care sections and its own skin care brand.
Kroon stated beauty is likely one of the 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 merchandise on-line, she wrote.
The October occasion may additionally assist Amazon higher compete with retailers corresponding to Ulta Beauty and LVMH-owned Sephora, stated Elaine Kwon, who beforehand served as a vendor supervisor in Amazon’s vogue 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 corresponding to 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 corresponding to a “clean beauty” tag, which faucets into tendencies round pure and sustainable merchandise.
“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.'”