The Future of Cosmetics: E-Comm Trends to Watch 🧴

The Future of Cosmetics: E-Comm Trends to Watch 

Hello, #DotCommunity!

We're excited to share with you the latest e-commerce trends in cosmetics and insights from a recent “Kozmetikte Gelecek Zirvesi” summit. Let's explore the top trends shaping the future of cosmetics.

1. Medicalization at Home

Spacetime and other innovative brands are revolutionizing healthcare with cutting-edge technology that brings clinical services out of the clinic and into our homes! UCARE, for instance, is a portable urine analyzer that allows for easy and accurate urine testing. And let's not forget about clinical LED masks that have taken the beauty world by storm. Even product packaging is shifting towards a more medical aesthetic, as exemplified by Dr.Jart+ .Exciting times in healthcare! ???

2. Clean & Vegan Packaging

Sustainable, reusable, and biodegradable packaging is gaining momentum. Brands are placing more emphasis on product content and pledges on packaging, like "organic, 100% eco-friendly, natural, vegan, cruelty-free". The number of pure vegans is currently at 1%, but it is expected to rise to 10% by 2030 if this trend continues. As an example, adidas' sustainable-vegan shoe and apparel range offers cruelty-free and vegan options.

3. Premiumization

Low-segment brands are upgrading to average segments with innovative packaging, transforming standard products to premium with the use of sleek, creative designs. For instance, Pantene’s recently launched PRO-V shampoo bottles are the perfect example of premiumization in packaging.

4. Personalization

At the summit, personalization was the buzzword for beauty enthusiasts! With AI and bioprint technology, cosmetic brands customize products to individual skin, hair, and age. Check out L'Oréal's Modiface- AI-powered virtual makeup try-ons on Amazon!

Specialized products for diverse customers are the trend, like clean beauty, multicultural, age-inclusive, and gender-neutral. Ipsos research shows personalization boosts purchase likelihood by 80%! Conversion rates are 2x higher with personalization than traditional sales. These beaming stats have us all hook, line, and sinker. 

5. Nutricosmetics

During the summit, one of the speakers, Orhan Irmak, Partner & Design Director at Orhan Irmak Tasarım, dropped a crazy fact - across the countries surveyed in GWI Zeitgeist, one-third of consumers globally now take more vitamin supplements! ?

And it's not just the rest of the world. In the US alone, vitamin use has gone up from 36% to 43% since Q2 2022. So, it's no surprise that products and ingredients that support natural beauty, like supplements for your skin, nails, and hair, will continue to be top picks! ?

From Self-Care to Plastic Surgery: Exploring Leading E-Comm Beauty Trends in Asia

TikTok is much more than viral dances and lip-syncing - it's also a platform for showcasing winning cosmetic content. Efforts that focus on demonstrations of efficacy - before and afters, education - product usage and combination demos, and skincare regimens - how to integrate products into daily routines are some of the most successful.

Our CEO Sevin Balliktas highlighted in her speech, one such brand that has successfully leveraged TikTok is SKINTIFIC - which rose to the top in Indonesia through innovative online strategies and TikTok shops. The brand was born online through rising TikTok trends, emerging in marketplaces, and then building its solid presence offline. The company's hero products were transformed into trending products through strategic partnerships with micro-influencers - a communication tactic that accounted for 72% of their influencer strategy.

Yasemin Özen Gürelli CCO at Ipsos brings enlightening insights: a primary trend taking South Korean e-commerce beauty by storm is Inssa - characterizing self-care via isolation and reflection to drive personal growth. Inssa delivers an experience that transcends physical improvement, promoting inner satisfaction.

• Beauty standards have soared in recent times, with 70% of people considering skincare a necessity. The impact of influencers on the industry is not to be underestimated. 

• Meanwhile, intense cosmetic surgeries have become commonplace - South Korea, for instance, ranks 3rd globally with 311,571 facial plastic surgeries. 

• At the same time, people are investing in personal care devices, with 36% owning electronic foot massagers and 32% owning IPL (Intense Pulsed Light) skin treatment devices for use at home.

The Rise of Skin Care in Turkey

Turkey's love for skin creams is on the rise, with e-commerce channels for cosmetics experiencing a boom. Nearly half of all online shoppers have bagged themselves a cosmetic item this year, amounting to a 69% increase in sales compared to last year. According to Ipsos, individuals are making an average of 3.4 purchases annually. Additionally, daily usage of skin cream has spiked by a staggering 58% in 2022, when compared to the previous year!

Fresh #DotInsights*:

The skin care category

• The percentage of prices below 80₺ has drastically decreased from 62.5% to just 20.8% compared to the previous year. On the first page, there has been a reduction in the number of dominant brands from 17 to 14. 

• This declining brand diversity suggests that the leading brands on the digital shelf have strengthened their market presence. While Mjcare held the top position last year, Rise and Shine have taken the lead this year, closely followed by Mjcare.

• The most sought-after keywords in this category include "sabun" (soap), "peeling" (exfoliation), "yağ" (oil), "gözenek" (pore), and "güneş" (sun).

The skin serum category 

• Last year, we saw ownership of 16 different brands on the digital shelf, while this year we observed 15 different brands. The previous year's leader, The Purest Solutions, loses its leadership position, with Doa Kozmetik taking the top spot this year. 

• It's a category where we've seen the impact of price increases. The product range under 120₺, which accounted for 71%, has decreased to 25% this year.

• The most searched keywords for the skincare category are "eşitleyici (corrector), aydınlatıcı (illuminating), leke karşıtı (anti-spot), asit (acid)". Again, we see the reflection of TikTok trends in product names.

The makeup category

• The number of brands on the shelves has decreased from 21 last year to 14 this year. This trend of decreasing brand diversity but increasing SKU count persists in this category.

• Notably, price increases have not affected shoppers' spending range. The proportion of products priced below 80 TL has dropped from 50% to 43% this year. 

• Mascaras remain the most dominant sub-category, with "aydınlatıcı (illuminating), teleskopik (telescopic) and likit "liquid" emerging as popular keywords on digital shelves. The rise of liquid blush as a trend on TikTok has contributed to its increased representation. The keyword "liquid" plays a crucial role in converting TikTok trends into conversion.

After analyzing 244K+ user reviews, we found that discussions mainly focus on top-selling products like shampoo, skin serum, facial cleanser, etc. The overall sentiment of these reviews is positive at 78%. Common topics mentioned include 1- Product, 2- Recommendations, 3- Size, and 4- Price. Recommendations are crucial in the cosmetic products industry. Also, size-related reviews often highlight discrepancies between the displayed and delivered products. Notably, comments about label size showed a predominantly positive sentiment with a 73% rate.

Stay abreast of the latest e-commerce trends with #DotInsights, and incorporate them into your business strategy. Do the current trends resonate with your business?

*Source: Datadot May 23 vs 22, Trendyol