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REPOR T

• Walmart – the largest global retailer in revenue, Walmart Beauty goes Virtual with ecommerce
is a big-box mass retailer that, until its recent team-up with The digitisation of the beauty market in the USA has led to a
SpaceNK, only stocked affordable beauty brands under a $50 growing demand for product endorsements by influencers,
price point. credible testimonials, and certifications, all of which are more
easily provided and accessed online.
As a result, more and more consumers are making their
purchases through online stores, to the point that it is now
expected that almost half of beauty sales made in the region
will be generated online by 2025.

The challenges of Bricks
and mortar Retailers
While major retailers such as those mentioned above
present incredible opportunities for brands, there are a lot of
requirements that will need to be met before a product will
even be considered for the shelves.
For example, only brands which belong to the conscious beauty
category, are black-owned, or have momentum in the form of
an established social media presence, visual identity, and quality
press are likely to be sought after by these retailers due to
consumer demand for these types of products and brands.

At present, lower priced mass market beauty brands are
particularly successful in the eCommerce channel, where
Bathandbodyworks.com currently generate the highest net
sales. Luxury and premium brands are also doing well here via
retailers such as Sephora and Dermstore, while other retailers
focus on a more personalised experience for shoppers, like
IPSy, who specialise in helping consumers narrow down their
product selection based on their skin, hair and makeup type,
whilst also encouraging trials and samples.
Online retail giant Amazon hold a share of around
50% of the overall eCommerce market in the USA and
account for approximately 33% of all beauty and personal
care products, making them an obvious choice for
On top of this, brands must be willing to spend a
substantial amount of time and money on their marketing
plan and also have the resources to be able to scale up
and support growth both within stores and their online
businesses.
More perhaps than any of the other channels, pharmacies
and drugstores require brands to have extensive business
plans, strict logistic operations to avoid penalties due to
items going out of stock, and be willing to provide strong
levels of marketing and sales support in order for their
products to be considered for their stores.
For these reasons, brands may find it difficult to navigate
this distribution channel, though advice from an expert with
experience in this area will increase their chances of success.

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