Amazon beauty sale in October aims to attract first-time holiday shoppers

Amazon beauty sale in October aims to attract first-time holiday shoppers

Amazon employees load boxes of orders at the company’s fulfillment center ahead of Cyber ​​Monday in Tracy, California.

David Paul Morris | Bloomberg | Getty Images

According to documents reviewed by CNBC, Amazon plans to hold a beauty event in October with the aim of attracting early-stage vacation buyers and quickly elevating the company’s position.

A slideshow Amazon sent to some beauty brands said the company is currently planning the event from October 4 to 25. The same information has been sent to some of the consulting companies that help run businesses on Amazon.

“We want to bring customers back to Amazon during Black Friday week, but also in the long term with additional marketing levers,” Amazon wrote in the slideshow. “This is a unique opportunity for the selected brands to reach both more buyers and new customers. “

Amazon spokeswoman Katie Kroon confirmed the document’s authenticity. She told CNBC via email that next month’s event will be called the “Holiday Beauty Hall,” and added that the site will feature a variety of products, including perfumes, men’s grooming and grooming. winter skin.

Amazon, the world’s largest online retailer, has long been trying to capture a significant share of the global beauty market, generating $ 500 billion in annual sales. The company started offering health and beauty products in 2000, but initially its selection was mostly limited to mainstream brands.

The beauty market is now of particular interest as consumers have flocked to the web to purchase makeup and personal care items during the pandemic. According to market research firm 1010Data, online makeup sales increased 40% in 2020 from the previous year, while sales of “self-care” items like shampoo, cosmetic products, etc. face washing and lotions increased by 59%.

Amazon is hoping to use the incident to generate traffic to promote the upcoming holidays, said a consultant who discussed it with Amazon and asked to remain anonymous because the discussions were private. Jed Rawson, CEO of e-commerce consultancy firm Piravana, said the company started reaching out to beauty brands and consulting firms to attend the event in mid-August.

Despite being largely trapped indoors during the 2020 holiday season, Americans have spent record time outside of their devices, according to Adobe Analytics. Online shopping in the United States rose 32.2% from a year ago to $ 188.2 billion in November and December, Adobe said

In recent years, Amazon has expanded its ‘premium beauty’ subcategory to include more premium products and launched an independent beauty store to showcase new and emerging brands. She also launched an exclusive hair care section and her own skin care brand.

Kroon said beauty is one of the fastest growing categories on Amazon and is “ripe for innovation” when it comes to discovering and showcasing products. Amazon is “uniquely positioned to replicate” the experience of shopping for beauty products online, she wrote.

The October event could also help Amazon better compete with retailers like Ulta Beauty and Sephora, owned by LVMH, said Elaine Kwon, who previously worked as a sales manager in Amazon’s fashion category and now heads the fashion industry. Quantified consulting company. Department stores are rapidly losing beauty market share to direct-to-consumer brands like Ulta, Sephora and Glossier and ColourPop.

Kwon said Amazon has tried to increase its market share by showcasing more top brands on its site and experimenting with features like a “clean beauty” label, which taps into natural and sustainable product trends.

“Sephora and Ulta have protected their customers with great success,” Kwon said. “It’s Amazon’s way of trying to reach customers and give them a great experience that makes them think, ‘Maybe I don’t need to go to Sephora for all of these things, maybe i can go to amazon for this or that. “”

To concern: Full Interview of Amazon CEO Andy Jesse with CNBC

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