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Rise of Ecommerce Competition in the Beauty Industry

Dexam by Dexam
November 25, 2022
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Rise of Ecommerce Competition in the Beauty Industry

The beauty industry is one of the world’s most competitive and lucrative industries. In recent years, the rise of eCommerce tools like Common Thread Collective has allowed new players to enter the market, leading to even more competition among beauty brands. The rapid competitive increase has significantly impacted how consumers shop, and brands adapt their strategies to stay ahead of the curve.

Reliance On Online Shopping

There is no denying that consumers are increasingly turning to eCommerce to purchase their favorite beauty products. More and more beauty product sales in the United States are now made online. We can only expect this trend to continue. Now, business and the economy have been taking their renovated image caused by the upheavals of digitalization that extends its power to grab more consumers and reduce the bridge between the brand and customers.

Statistical calculation shows that 7.9 billion of the total world mass i.e., 27% of the population, falls under the category of Digital buyers or shoppers and, quite evidently, is well accustomed to online rejuvenation. The curve is going upward over time.

This shift to online shopping has significantly impacted the beauty industry. To stay competitive, brands must focus on creating a solid online presence. This means selling products through their own websites and using social media and other digital channels to reach consumers where they spend most of their time.

Staying Competitive In The Digital Shopping World

To reach consumers online,  brands must first create a strong presence on digital channels like social media and search engines. This can challenge many brands, especially those new to eCommerce. Additionally, brands must also focus on creating compelling product descriptions and visuals that will grab the attention of online shoppers.

The post-pandemic epoch has witnessed a massive evolution of digitization. And it is no surprise how this evolving digitization has impacted the business sectors. Out of the plethora of industries benefiting from this, the fashion and shopping industry sets a notable precedence.

Digital marketing serves as a magnet that attracts and unifies shoppers across the globe, from the comfort of their homes. Several fashion industries have utilized this marketing tool to escalate their brand value and target audience by running ads on social media platforms and collaborating with influencers.

To succeed in the digital world, brands must also be willing to experiment with new marketing strategies and technologies. Using data to target specific consumers with personalized messages is one way to stand out in a crowded marketplace. Additionally, investing in new technologies like augmented reality can give brands an edge over their competitors.

Augmented Reality (AR) gives shoppers a more immersive experience when shopping for beauty products online. Shoppers can  “try on” products before they buy, which helps to eliminate buyer’s remorse. This technology is still in its early stages, but it has the potential to revolutionize the beauty industry and give shoppers a more personalized experience.

The Impact of Social Media on eCommerce

Social media has dramatically impacted how consumers shop for beauty products in recent years. Platforms like Instagram and YouTube have become integral parts of the beauty industry, with many brands using these channels to reach new customers.

Social media has also changed the way consumers research and discover new products. In the past, shoppers relied on magazines and word-of-mouth to find new products. Now, they can scroll through their feed and see what effects their favorite influencers are using. This has led to a more democratized beauty industry, where small brands have the same opportunity to reach consumers as large brands. The respective industry tycoons, as well as the entrepreneurs, are all lined up to grab a significant portion of the population as a part of their sales in order to see a remarkable profit margin and thus to sustain in this digital wave. So they are trying to attract people over social platforms; you can see each and every brand has its own e-commerce website also. Cause nowadays, people are online, and trying to find their needs over social platforms, Are here you have the maximum chance to grab the market through social media.

The rise of social media has also had a significant impact on the way brands market their products. In the past, beauty ads were primarily focused on print and television. Now, brands are using social media to reach consumers where they spend most of their time. This shift has led to a more personal and interactive form of marketing, with brands using influencers to promote their products.

The Future of the Beauty Industry

The beauty industry is constantly evolving, and this is likely to continue in the years to come. As eCommerce and social media grow, brands must find new ways to reach their consumers. New technologies will likely emerge that will change how consumers shop for beauty products.

Stefano Gabbana asserts that the fashion industry is no longer a distant figure. The advent of digital marketing has established a direct relationship between the fashion industries and their customers.

He goes on to showcase his gratitude to the digital marketing tools that have given him the liberty to share and circulate ideas worldwide.

According to Statista’s prediction, the eCommerce fashion industry’s CAGR is supposed to reach 14.2%, approximately, between the years 2017 & 2025. It has even been predicted that the industry will hit a valuation of about $673 billion by 2023.

To stay ahead of the competition, brands must be willing to embrace change and experiment with new marketing strategies. They must also be prepared to invest in digital marketing and social media to reach consumers where they spend most of their time.

Final Thoughts

The beauty industry is one of the world’s most competitive and rapidly-changing industries. To stay ahead of the competition, brands must be willing to embrace change and invest in digital marketing and social media. Therefore, it is safe to opine that digital marketing is the new progression tool for the fashion industry. By investing in eCommerce tools like Common Thread Collective, they can reach consumers where they spend most of their time and build stronger relationships with them.

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