Workers will collect the boxes at the Amazon Fulfillment Center on Monday, June 21, 2021, on Prime Day in Raleigh, NC, USA.
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According to a document reviewed by CNBC, Amazon will host a beauty products event in October to attract early vacation shoppers and enhance its position in the booming category.
The company is currently planning an event from October 4th to 25th, according to a slide deck that Amazon sent to some beauty brands. The same information was sent to several consulting firms that help manage business on Amazon.
“We not only want to bring our customers back to Amazon during the Black Friday week, but we also want to use additional marketing tools to bring them back in the long run,” Amazon wrote on its slide deck. “This is a unique opportunity for the brand of choice to reach more shoppers and new customers.”
Amazon spokesman Catie Croon confirmed the authenticity of the document. She emailed CNBC that next month’s event will be called the “Holiday Beauty Hall,” adding that the site will feature a wide variety of products, including fragrances, men’s grooming, and winter skin care. ..
Amazon, the world’s largest online retailer, has long sought to gain a greater share of the global beauty market, generating $ 500 billion in annual revenue. The company began offering health and beauty products in 2000, but initially its choices were primarily limited to mass market brands.
The beauty market is currently particularly interesting as consumers flock to the web to buy cosmetics and personal care products during a pandemic. According to market research firm 1010data, sales of online makeup in 2020 increased by 40% year-on-year, and sales of “self-care” items such as shampoos, cleansers and lotions increased by 59%.
Amazon hopes to take advantage of the event to increase traffic to future holiday promotions, a consultant said in a discussion with Amazon, asking them to remain anonymous because the discussion was private. Jed Rawson, CEO of e-commerce consulting agency Pirawna, said the company began contacting beauty brands and consulting firms in mid-August and began appreciating attendance at the event.
According to Adobe Analytics, the 2020 holiday season was almost deadlocked, but Americans spent record amounts of money from their devices. According to Adobe, US online purchases in November and December reached $ 188.2 billion, up 32.2% year-on-year.
In recent years, Amazon has launched an indie beauty store to highlight new brands, including more high-end products by expanding the “Premium Beauty” subcategory. We have also developed a specialized hair care department and our own skin care brand.
Cosmetology is one of Amazon’s fastest-growing categories, and “the time for innovation is ripe” when it comes to product discovery and presentation, Kroon said. She writes that Amazon is in a position to “reinvent its own” the experience of buying beauty products online.
The October event could also help Amazon become more competitive with retailers such as Ulta Beauty and Sephora owned by LVMH, formerly a vendor manager in Amazon’s fashion category and now Elaine Kwon, who runs the consulting firm Kwontified, said. Department stores are losing more and more market share in the beauty market for Ulta, Sephora, and direct-selling brands such as Glossier and ColorPop.
According to Kwon, Amazon is trying to increase its market share by introducing more major brands on its site and experimenting with features such as “clean beauty” tags that take advantage of natural and sustainable product trends. It is said that there is.
“Sephora and Ulta have been very successful in protecting their customer base,” said Kwon. “This is Amazon’s way of trying to reach out to these customers and give them a great experience to think about.” You may not have to go to Sephora for all of this, but for this You may be able to go to Amazon. that. ‘”
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