Five Surprising Facts about Health and Beauty Shoppers

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By Published On: September 3, 20190 Comments

As of July 2019, the beauty industry is worth $532 billion, making it one of the most prominent categories in retail. But if you're in this industry, do you really know your customers?

In the latest Shopper Profile Report on Health and Beauty Products, the Power Retail team provides deep insights from online shoppers whose last purchase was a health and beauty product. If you’re itching to find out some intriguing facts about the online health and beauty shopper in Australia, this is the report for you.

1. Customers spend under $150 in an average transaction.

According to the research, health and beauty products make up for nine per cent of all online purchases, with a whopping 40 per cent of shoppers making a purchase only two to six days ago. From these recent purchases, 75 per cent of online shoppers spend anywhere from $21 to $150, with 41 per cent of them spending under $75. This doesn’t include delivery or insurance charges.

2. Customers typically shop in the same place more than once.

Despite online shoppers spending up to $150 on the average order, these customers typically only have 3.4 items in their baskets. This means the items, albeit pricey, are not usually seen as ‘impulse’ purchase, unlike clothing. According to the research, 38 per cent of shoppers have bought from the same place two-five times in the last 12 months. Products such as foundation, mascara and concealer will be continuously bought, whereas items like an eyeshadow palette or a makeup brush are typically bought once.

3. Almost half of customers buy mostly discounted products.

Although this may not come as a surprise, 49 per cent of online health and beauty shoppers buy ‘most of their items on sale or via promotion’. With this in mind, 37 per cent of shoppers plans their online shopping around a sales event ‘a little’, whereas 32 per cent do a ‘moderate amount’. According to the research, the three most popular sales events include EOFY, Black Friday and Boxing Day. What does this mean for retailers? Holding a special sales event may help increase the customer intake, but if you oversaturate the market, it will feel like there’s no sale at all – too many sales means there’s no ‘spark’ to the price drop anymore.

4. Influencers may not be all that influential

Even though social media shopping wouldn’t be the same without influencers, it turns out that they may not actually pull that much impact on customers when shopping online. According to the Shopper Profile Report, online shoppers follow 3.8 influencers on social media, with 58 per cent of them following someone in the beauty industry. However, 53 per cent of them share the content that influencers promote at a rate ‘monthly or less’. With controversies arising from influencers every few weeks, 62 per cent of online shoppers hope for authentic and genuine content from these social celebrities.

5. VR is the winner for health and beauty customers

In a world that’s dominated by new technology, more online shoppers are embracing the advances when making a purchase. According to the research, 44 per cent prefer a Native App that features VR, so they can ‘see items in 3D, and look at them from all angles’. For companies like L’Oreal and Sephora, this is already in action – trying on virtual cosmetics like eyeshadow, lipstick and eyeliner is the next step to trying on as many products as possible. Not only is this a great thing for customers, but it also reduces the likelihood of returns, which is an issue arising for retailers worldwide. “Like other industries, specifically in beauty, the ability to discover, sample, try on is a critical part of the journey,” explained Prama Bhatt, Senior Vice President of Digital and E-Commerce at Ulta Beauty. “So it makes a lot of sense from a business perspective as well as an experiential perspective.”

The health and beauty industry has been developing since its explosive start in the 1910s. While the industry remained continually growing throughout the 20th century, it’s become one of the most significant commodities since the introduction of social media and digital shopping. For retailers, this information is essential if you’re hoping to capture your audience at the right time.

Don’t miss Power Retail’s latest Shopper Profile Report on online Health & Beauty shoppers, out this Wednesday, September 4. The report includes 30+ pages with more than 70 charts telling you everything you need to know about the Health & Beauty Shopper. Click here to be notified about the upcoming report.

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About the Author: Power Retail

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