The self-select market for consumers in general is dynamic and there are many factors contributing to its success and its challenges. The influences on this market are diverse and range from global to local as shoppers return to stores in person in volumes not seen since early 2020.
Beauty is back but it has a new face
Foundations being the bases that they are, started to make the turn first. As skin became such a focus through the pandemic it seemed as if we were reluctant to cover it up with tints and glows. Trends are pointing towards a fresher face emerging this year. Eyes are being paired back letting the lashes do all the talking and we have seen a pickup in sales along with some key launches in this area. Lips have been hidden behind masks for so long: we are now finding that you are in 1 of 2 camps:
1. Still rocking a nude but with extra sheen, now that wearing masks are no longer required
2. Full pout with glorious and vibrant reds and you mark the return of the lip
Returning to “Normal” & its challenges
The last 9 months however has seen a temporary return to “normal” with the lifting of the majority of COVID restrictions. Self-select cosmetics traded well through the Christmas period and this upsurge in sales was also reflected in the recovery of some other key beauty categories. With a return to offices and nightlife, we have seen that a lot or brands have been in growth or have at least seen their sales recover which allows retailers to be cautiously optimistic.
This has not been without its challenges however: The implementation of EU directives relating to the ban of DHA and Lilial ingredients, resulted in varying levels of supply availability. We experienced a surge in demand for bronzing products right at a time when manufacturers were updating ingredients and packaging to comply with these new directives. Key manufacturers themselves are still grippling with supply chain issues relating to packaging and shipping costs which have still not returned to pre-covid levels. Fulfilment therefore struggled to remain consistent. Additionally, a lot of brands have been pushing through additional price increases, to help compensate them for these extra costs.
Consumer habits and the need for value
Shopper trends have been changing throughout the year. The initial optimism of a “return to normal” and nightlife – has been dampened by rising inflation and its overall impact on average basket spend. We have seen a more cautious approach from our retail customers who are now looking for value during their weekly shop. We started a campaign back in May launching multiple bundle deals across our platforms (in store, online & click & collect) which has been and is continuing to be well received by customers. Further to this, we recently launched a very successful spend and save campaign in stores (Spend ¤30 and receive a ¤5 voucher redeemable in store). This helps maintain the value message to our customers and encourages them to shop again with us.
The importance of innovation & retailing standards
The massive success of on trend brands from Irish influencers has helped drive new younger customers back into this category. The innovation has helped refresh the self-select offering and continues to drive new and existing customers back to stores. Irish influencers have really dominated the market with the innovation of new products such as My Mascara, Hydra lip, Body base etc. The use of popular social channels such as TikTok and Instagram to teach customers the how-to use of these new and existing products, drives great sales and demand.
The old model of just placing 1m or 1.5 m stands and filling them with stock are no longer enough to drive sales. Influencer brands that bring regular newness and put a local face to a global market are winning sales. Innovation and NPD in both product and stand along with a strong campaign that are targeted locally, are delivering much more consistent sales. These can be individualised rather than one size fits all market approach, and it is proving to be very effective. With potential upheaval in the industry in the year ahead, it is more important than ever that retailers maximise these sales opportunities.
E-Commerce, accessibility, and customer relations
While in store shopping has been steadily returning, it is important that retailers maintain excellent levels of service both in store and online. We invested substantially into our Ecommerce platforms over the past 3 years. This included the creation of brand rooms online for selected brands, and the installation of click and collect kiosks in a lot of our locations. This way, we can make these niche beauty brands available to all consumers who regularly shop in store but where that store might not necessarily stock their brand of choice.
Our E-Commerce platform also enables us to help customers that would not typically operate in the online space. We can utilise the knowledge and expertise of our staff in stores, and with whom our customers have a relationship, to assist them to purchase either in store with click and collect, or in store straight to their door with free online delivery (deliveries over ¤39 are free). This allows us to uphold the high standards our customers are accustomed to, in both bricks and mortar & in the online channel. The future of beauty retailing is therefore threefold: It must be in store, online, and deliver outstanding customer service.
