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From industry leaders to subscription startups, the beauty industry is not feeling the retail hit like the other sectors and here’s why.

Retailers across different sectors are struggling to compete with e-commerce giants like Amazon and bankruptcy is becoming a real risk for most. But not all.

According to the RetailDive study, 88% of retailers don't feel confident about emotionally engaging customers and 75% aren't confident that their data is reaching in-market consumers.

Now, let’s look at the beauty sector. Ulta's online sales grew 63% in the third quarter and Sephora's innovative approach to in-store experiences has kept them relevant and as a technology leader in the retail space. It seems that the beauty sector is not struggling with engaging customers or communicating with in-market consumers. What’s their secret?

Five years ago, it wasn’t uncommon to buy your cosmetics from the nearest department store. Then a wave of innovation hit when beauty brands uncovered the value in utility when creating an in-store experience.

Through innovation and experimentation, beauty giants like Sephora and Ulta have raised shopper's expectations on how retailers can stand out from e-commerce.

Jason Goldberg, SVP of Content and Commerce from SapientRazorfish provided his insight: "In reality, most of the magic mirrors haven't dramatically improved the try-on experience in a dressing room and most of the virtual reality fashion shows haven't dramatically made it easier to shop for apparel in apparel retail."

This suggests that retailers need to be more strategic about their technology investments and focus on solving their customers' pain points when implementing new innovations.

You can read the full article here.