Beauty Ecommerce

Goals

For the hair and beauty industry, to understand ecommerce trend, emerging innovation in ecommerce, and ecommerce metrics, including % of mobile sales vs. desktop sales, standard conversion rates, and average time on site, in order to make recommendations for the ecommerce site for a new hair company.

Early Findings

Trends

  • It is predicted that there will be an increase in social shopping as more consumers will look to buy directly from social media sites.
  • Personalization will continue to be important.
  • Establishing communities as part of the purchasing journey. Statistics show that customers who interact with each other are 400% more likely to make a purchase.
  • Embracing browsing rather than always pushing for conversions.
  • Demand for subscriptions continues to grow and brands can use them for both sampling and sales.
  • The use of augmented reality to let consumers virtually try products which may eliminate some barriers that currently keep consumers from making a purchase.

Emerging Innovation

  • Boutiqaat's platform allows influencers to create virtual boutiques that they can add their favorite products to and then promote to their followers.
  • Sephora has been at the forefront of innovation in beauty ecommerce with tools such as Colour Match which uses AI to find the right makeup shade for customers, and a Facebook Messenger bot that allowed consumers to book make-up appointments that were powered by AI. These appointments led to an increase in sales.

Ecommerce Metrics

  • Metrilo, a company that works with brands on improving their ecommerce results, provided detailed ecommerce benchmarks on various sectors of the beauty industry. For hair care, the average benchmarks were as follows: 13.2% retention rate, $56 lifetime value, 1.3 orders per customer, 93 days time between orders, and 4.6% conversion rate.
  • Although not specific to beauty, statistics show that the conversion rate on mobile devices is less than half the rate on desktop devices.

Proposed next steps:

You need to be the project owner to select a next step.