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    High potential in online commerce for beauty brands

    10/11/18 | 8:00 AM time

    According to a study by the VKE Cosmetics Association, there is untapped potential in the e-commerce sector

    In the study "Beauty E-Commerce in Germany - Where are brand manufacturers today?", the VKE Cosmetics Association in cooperation with the Friends of C. Digital Agency examined the digital status of cosmetics companies. The results show that beauty brands still have numerous untapped potentials.

    Development of the e-commerce sector

    Currently, 94 % of sales in the German cosmetics market is generated by local retailers. However, the e-commerce sector is developing much faster by comparison. The retail beauty trade will grow by 1.7 % per year until 2020, while sales in online shops are expected to grow by 9 % per year.

    Potential through company online shops

    In the colour cosmetics segment, only every other manufacturer operates an online shop (47 %), despite the fact that there is great potential for companies here. In the skincare segment, on the other hand, the figure is already 78 %. "On their own platform, brands can create extensive worlds and the possibilities for addressing customers can be varied," says Immo Tietjen, Senior Consultant in the Friends of C consulting team for digital strategies and analyses.

    Tailor-made product offers through customer data

    "Brand shops may not be the most affordable in terms of price, but manufacturers have other options - for example through customer data, which already accrues in their web shops but is hardly used for tailor-made offers," says Immo Tietjen. In the fragrance (89 %) and colour cosmetics (86 %) segments, however, the vast majority of companies do not use the "My Account" section of their websites for data enrichment. The skincare sector has the best position here (75 %), which also offers the most customer loyalty programmes.

    Source: VKE Cosmetics Association, photo: Fotolia / Rawpixel

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