Amazon plans to carry a magnificence merchandise occasion in October in an effort to lure early vacation buyers and enhance the corporate’s place in a booming class, in accordance with paperwork reviewed by CNBC.
A slide deck Amazon despatched to pick out magnificence manufacturers mentioned the corporate is presently planning the occasion for Oct. 4-25. The identical data was despatched to some consulting companies that assist handle companies on Amazon.
“We wish to draw clients again to Amazon throughout Black Friday week but in addition long run with extra advertising and marketing levers,” Amazon wrote within the slide deck. “This can be a distinctive alternative for chosen manufacturers to achieve each extra buyers 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 will probably be referred to as “Vacation Magnificence Haul” and added that the positioning will characteristic numerous product sorts, 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 sweetness merchandise in 2000, however its choice was initially restricted largely to mass-market manufacturers.
The sweetness market is of specific curiosity now, as customers have flocked to the online to purchase make-up and private care gadgets in the course of the pandemic. On-line make-up gross sales surged 40% in 2020 from a yr earlier, whereas gross sales of “self-care” gadgets reminiscent of shampoo, face wash merchandise and lotions climbed 59%, in accordance with market analysis agency 1010data.
Amazon hopes to make use of the occasion to drive site visitors to approaching vacation promotions, mentioned one marketing consultant, who had discussions with Amazon and requested to stay nameless as a result of the talks have been personal. The corporate started reaching out to magnificence manufacturers and consulting companies in mid-August to gauge participation within the occasion, mentioned Jed Rawson, CEO of e-commerce consulting company Pirawna.
Whereas largely caught inside in the course of the 2020 vacation season, Individuals spent a file sum of money from their gadgets, in accordance 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 hair care sections and its personal skincare model.
Kroon mentioned magnificence is likely one of the fastest-growing classes on Amazon and that it is “ripe for innovation” in relation to product discovery and presentation. Amazon is “uniquely positioned to reinvent” the expertise of shopping for magnificence merchandise on-line, she wrote.
The October occasion may additionally assist Amazon higher compete with retailers reminiscent of 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 dropping share within the magnificence market to Ulta, Sephora and direct-to-consumer manufacturers reminiscent of 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 reminiscent of a “clear magnificence” tag, which faucets into developments round pure and sustainable merchandise.
“Sephora and Ulta have very, very efficiently protected their buyer base,” Kwon mentioned. “That is Amazon’s method of making an attempt to achieve out to these clients and provides them an incredible expertise that makes them assume, ‘Perhaps I haven’t got to go to Sephora for all of these items, perhaps I can go to Amazon for this or that.'”
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