Amazon plans October magnificence sale to hook early vacation consumers
David Paul Morris | Bloomberg | Getty Pictures
A slide deck Amazon despatched to pick magnificence manufacturers mentioned the corporate is presently planning the occasion for Oct. 4 by way of Oct. 25. The identical data was despatched to some consulting corporations that assist handle companies on Amazon.
“We need to draw clients again to Amazon throughout Black Friday week but additionally long run with further advertising and marketing levers,” Amazon wrote within the slide deck. “It is a distinctive alternative for chosen manufacturers to achieve each extra consumers and new clients.”
Catie Kroon, an Amazon spokesperson, confirmed the authenticity of the doc. She instructed CNBC by e-mail that the occasion subsequent month shall be referred to as “Vacation Magnificence Haul,” and added that the location will characteristic a variety of product varieties, together with perfume, males’s grooming and winter skincare.
Amazon, the world’s largest on-line retailer, has lengthy been making an attempt to realize an even bigger share of the worldwide magnificence market, which generates $500 billion in annual gross sales. The corporate started providing well being and wonder merchandise in 2000, however its choice was initially restricted principally to mass-market manufacturers.
The sweetness market is of specific curiosity now, as shoppers have flocked to the net to purchase make-up and private care gadgets through the pandemic. On-line make-up gross sales surged 40% in 2020 from a yr earlier, whereas gross sales of “self-care” gadgets like shampoo, face wash merchandise and lotions climbed 59%, in line with market analysis agency 1010data.
Whereas largely caught inside through the 2020 vacation season, Individuals spent a document sum of money from their gadgets, in line with Adobe Analytics. U.S. on-line purchases throughout November and December surged 32.2% from a yr earlier to $188.2 billion, Adobe mentioned
In recent times, Amazon has expanded its “premium magnificence” subcategory to incorporate extra high-end merchandise and launched an indie magnificence retailer to focus on new and rising manufacturers. It additionally rolled out specialised haircare sections and its personal skincare model.
Kroon mentioned magnificence is among the fastest-growing classes on Amazon, and that it is “ripe for innovation” on the subject of product discovery and presentation. Amazon is “uniquely positioned to reinvent” the expertise of shopping for magnificence merchandise on-line, she wrote.
The October occasion might additionally assist Amazon higher compete with retailers like Ulta Magnificence and LVMH-owned Sephora, mentioned Elaine Kwon, who beforehand served as a vendor supervisor in Amazon’s trend class and now runs consulting agency Kwontified. Malls are more and more shedding share within the magnificence market to Ulta, Sephora and direct-to-consumer manufacturers like Glossier and ColourPop.
Kwon mentioned Amazon has tried to spice up its market share by that includes extra main manufacturers on its web site and experimenting with options like a “clear magnificence” tag, which faucets into tendencies round pure and sustainable merchandise.
“Sephora and Ulta have very, very efficiently protected their buyer base,” Kwon mentioned. “That is Amazon’s manner of making an attempt to achieve out to these clients and provides them an important expertise that makes them assume, ‘Perhaps I haven’t got to go to Sephora for all of this stuff, perhaps I can go to Amazon for this or that.'”
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