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Study says more people buying beauty and personal care products online

The research found that Beauty and Personal Care, an industry traditionally rooted in the ability to touch, smell, sample and experiment with products in stores, is being played by a new set of rules.

December 16, 2014

Management consultancy A.T. Kearney has released the results of its study "Beauty and the E-Commerce Beast: 2014 Edition," which lays out the results of a consumer survey of online Beauty and Personal Care shoppers. The research found that Beauty and Personal Care, an industry traditionally rooted in the ability to touch, smell, sample and experiment with products in stores, is being played by a new set of rules.

Forty-seven percent of the survey participants stated that they purchase more beauty and personal care products online this year compared to last year, including a significant increase in shopping for more "experiential products" such as Fragrance and Color Cosmetics (both saw a 16-percent increase over 2012 in number of people who frequently purchase these items online).

"Beauty online is so much more than just a transaction," said Hana Ben-Shabat, A.T. Kearney partner and co-author of the study. "It's in fact one of the most active categories on the Internet. So online is becoming one of the most important paths to purchase. And those who buy beauty products online, make frequent purchases. For example, what we're seeing in this year's study is that there is an increased willingness on the part of consumers to buy fragrances and make-up online, versus habitually used products that they simply replenish."

At sales of $4.3 billion and growing, online sales in Beauty and Personal Care represents 6.5 percent of total sector sales. The study found that Beauty categories such as Skin Care have above average e-commerce penetration compared to personal care products such as Bath or Hair Care. A large difference in penetration also exists between prestige cosmetics and mass products where penetration is estimated at 11 percent and 6 percent respectively.

"As e-commerce penetration is still only an estimated 6.5 percent of the total category today, the store remains the main channel for Beauty and Personal Care," said Kosha Gada, A.T. Kearney principal and co-author of the study. "But the role of the store is shifting from a transactional platform to an experiential one, and increasingly every consumer that walks through the door is doing so armed with product information and opinions to a degree unlike ever before. This requires brands to rethink elements such as shelf planograms, retail staffing, and integration between online and in-store experiences."