How 4 Beauty Brands Are Using Digital to Increase Sales during COVID-19
How much makeup do you need if you have nowhere to go or if you are wearing a mask? That is the challenge facing beauty brands and retailers during the pandemic. The largest beauty retailer in the United States, Ulta Beauty, faced a steep decline in sales of 32.7% in the first quarter of this year. In addition to makeup wearing occasions one of the main ways the beauty industry gets shoppers to buy more is through sampling. Sampling, the practice of going into a store like Sephora or Ulta Beauty and using testers to try on endless shades of lipstick is no longer appropriate.
Even before the pandemic testers were not considered to be the most hygienic devices with studies finding E. coli and other types of bacteria on commonly used in-store testers. Testers are no longer available at Ulta Beauty or Sephora and that will impact the bottom line since consumers are four times more likely to purchase a product they have tested or interacted with. For beauty brand Lancôme, sampling is the fourth largest generator of sales behind past experience, recommendations from friends and family and price.
Beauty companies are not sitting still waiting for the pandemic to subside, instead they are focusing more on digital initiatives to drive and convert online traffic into sales. As the beauty world tries to navigate through new waters here are some of the solutions retailers have put in place to get customers shopping again.
1. Ulta Beauty
Instead of having product testers Ulta Beauty has signs in its stores encouraging customers to try on makeup digitally using the GLAMLab feature in its mobile app. While customers are trying on makeup digitally they are encouraged to speak to nearby sales associates if they have any questions.
GLAMLab uses facial recognition technology to apply makeup to a customer’s face with the option to digitally try on over 4,000 beauty items. “GLAMLab’s a great way to continue to try on product whether you’re at home or in-store,” said Prama Bhatt, Ulta Beauty's Chief Digital Officer. “Especially now, we feel like it’s a convenient and safe alternative to product testers. It also is a smart way to have the opportunity to discover and learn about what product is right for you.” The app also uses a survey along with facial recognition technology to identify a customer’s skincare issues.
Although augmented reality apps like Ulta Beauty’s have been around for several years they seemed rather gimmicky before and there wasn’t a strong enough need to use them if you could try on as many shades and products as you like in-store. The pandemic has changed that. Since the pandemic hit usage of GLAMLab is up by five times. "We have seen 19 million shades tried on in the post COVID-19 environment.” “That's significant for us," said Bhatt.
"We're continuing to grow the GLAMLab experience as we reopen our stores." added Bhatt. The app was launched back in 2016 and recently Ulta Beauty added new features including the ability for customers to digitally try on eyelashes or a different shade of hair colour. Ulta Beauty has founded that customers that use more than one channel spend nearly three times as much as customers that only shop at its stores.
“In response to the current situation, the team’s thinking about different ways we can engage digitally, including one-to-one consultation. They’re starting to do beta testing….to get advice and insight from a beauty advisor” said Bhatt.
2. Sephora
In another sign that beauty retailers continue to lean heavily into digital channels, last month Sephora launched Instagram Checkout which allows customers to buy brands sold at Sephora directly through their Instagram feeds or Sephora’s Instagram stories. More than 80 brands from the over 290 brands sold at Sephora including Drunk Elephant, Summer Fridays and the Sephora Collection are available to purchase using Instagram Checkout. Customers shopping using Instagram Checkout still receive Sephora beauty insider points, Sephora’s customer service as well as flexible returns.
“Facebook and Instagram want to become players in e-commerce, and for beauty, especially, that content is already on Instagram,” says Andre Artacho, Managing Director of Two Nil, an agency that focuses on direct to consumer companies. Deutsche Bank believes Instagram Checkout could generate $10 billion in revenue for Facebook by the end of next year.
Sephora also has functionality in its mobile app to allow customers to try on makeup digitally. More people have been shopping at Sephora online during the pandemic with online sales up 30% in March of this year.
3. MAC Cosmetics
In 2017 Mac Cosmetics began rolling out augmented reality try on makeup mirrors to its stores. 120 stores currently have the mirrors with more on the way. This has turned out to be a good move for the brand since it allows customers to still have the experience of trying on different types of makeup while shopping in-store.
Since the pandemic MAC Cosmetics has also expanded the capabilities in its mobile app to allow consumers to try on makeup digitally in live videos. The app has the ability to “create photo-realistic simulations that can be tested on any skin tone and adapted to different textures, mattes, sheens, glosses and more than 200 shades of lip or eye colours.” Since the pandemic virtual try-ons at MAC Cosmetics has tripled.
The cosmetics brand also allows consumers to have live chats with store associates through its website or via Facetime calls.
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4. Deciem
Once the pandemic hit in April Deciem set up Deciem at Home leveraging the online conversational platform Hero to connect customers with a local store associate through two-way live video or messages. The virtual consultations have been very popular with more than 200,000 consultations taking place or 2,500 per day since the program launched. Virtual consultations have contributed to a 37% increase in average basket size.
“Just doing things with Hero makes it a more personal conversation, because you’re inviting customers into your home, and vice versa. There might be customers who aren’t comfortable going into stores, so this is a good way to make them more comfortable where they feel in control. I see white space in bringing the market into the home, and we need more adaptability. We get to bring ourselves into the home and customize their online shopping experience” said Anthony Clemetson, Manager of Deciem’s New York City Fifth Avenue store.