Staff retrieve packing containers at an Amazon achievement heart on Prime Day in Raleigh, North Carolina, U.S., on Monday, June 21, 2021.
Rachel Jessen | Bloomberg | Getty Photographs
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 response to paperwork reviewed by CNBC.
A slide deck Amazon despatched to pick out magnificence manufacturers stated the corporate is presently planning the occasion for Oct. 4 by Oct. 25. The identical info was despatched to some consulting companies that assist handle companies on Amazon.
“We need to draw prospects again to Amazon throughout Black Friday week but in addition long run with extra advertising levers,” Amazon wrote within the slide deck. “It is a distinctive alternative for chosen manufacturers to succeed in each extra buyers and new prospects.”
Catie Kroon, an Amazon spokesperson, confirmed the authenticity of the doc. She advised CNBC by electronic mail that the occasion subsequent month shall be known as “Vacation Magnificence Haul,” and added that the location will function a lot of product varieties, together with perfume, males’s grooming and winter skincare.
Amazon, the world’s largest on-line retailer, has lengthy been attempting to achieve an even bigger share of the worldwide magnificence market, which generates $500 billion in annual sales. The corporate began offering well being and wonder merchandise in 2000, however its choice was initially restricted principally to mass-market manufacturers.
The wonder market is of explicit curiosity now, as customers have flocked to the web to purchase make-up and private care gadgets throughout the pandemic. On-line make-up gross sales surged 40% in 2020 from a yr earlier, whereas gross sales of “self-care” gadgets like shampoo, face wash merchandise and lotions climbed 59%, in response to market analysis agency 1010data.
Amazon hopes to make use of the occasion to drive site visitors to imminent vacation promotions, stated one guide, 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, stated Jed Rawson, CEO of e-commerce consulting company Pirawna.
Whereas largely caught throughout the 2020 vacation seasons, People spent a report sum of money from their gadgets, in response to Adobe Analytics. U.S. on-line purchases throughout November and December surged 32.2% from a yr earlier to $188.2 billion, Adobe stated
In recent times, Amazon has expanded its “premium beauty” subcategory to incorporate extra high-end merchandise and launched an indie beauty store to focus on new and rising manufacturers. It additionally rolled out specialized haircare sections and its own skincare brand.
Kroon stated magnificence is among the fastest-growing classes on Amazon, and that it is “ripe for innovation” relating 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 like Ulta Beauty and LVMH-owned Sephora, stated Elaine Kwon, who beforehand served as a vendor supervisor in Amazon’s trend class and now runs consulting agency Kwontified. Shops are more and more dropping share within the magnificence market to Ulta, Sephora and direct-to-consumer manufacturers like Glossier and ColourPop.
Kwon stated Amazon has tried to spice up its market share by that includes extra main manufacturers on its website and experimenting with options like 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 stated. “That is Amazon’s manner of attempting to succeed in out to these prospects and provides them a fantastic expertise that makes them suppose, ‘Possibly I haven’t got to go to Sephora for all of this stuff, perhaps I can go to Amazon for this or that.'”