A new report from A.T. Kearney says 47% of U.S. online beauty and personal care shoppers shopped more often in 2014 than in the previous year. As has been the trend for some time, Prestige Beauty and Personal Care products have higher online shopper penetration (11%) than mass products (6%)
 
Amazon holds a large 73% share of online Beauty and Personal Care shoppers followed by Wal-Mart (42%), and Sephora (35%).
 
The study, called “Beauty and the E-Commerce Beast: 2014 Edition,” provides 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. A.T. Kearney notes that while the results of the study are encouraging for some and may be threatening for others, one thing is certain—e-commerce is now an integral part of the business of beauty.
 
Forty-seven percent of the survey participants stated that they purchased 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% increase over 2012 in number of people who frequently purchase these items online).
 
Hana Ben-Shabat, A.T. Kearney partner and co-author of the study commented, “Beauty online is so much more than just a transaction. 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 makeup online, versus habitually used products that they simply replenish.”
 
According to the report, with sales of $4.3 billion and growing, online sales in Beauty and Personal Care represent 6.5% 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.
 
Kosha Gada, A.T. Kearney principal and co-author of the study said, “As e-commerce penetration is still only an estimated 6.5% of the total category today, the store remains the main channel for Beauty and Personal Care. 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.”
Hana Ben-Shabat, added, “It’s no longer sufficient for Beauty and Personal Care brands and retailers to invest experimentally in digital. Winning companies are those that can figure out how to make the link between online and offline, digital and physical. And collaboration between manufacturers and retailers in the quest for engaging today’s online consumer is more important than ever before.”