COVID’19 and the 500 billion dollar industry
With the world changing every day
forcing industries, institutions to try and hold their ground while the virus
adapts and grows to create hurdles one could barely fathom. Fortunately, we too
have learned to grow, adapt, and overcome the drastic changes COVID’19 has
brought to our normal life. As industries crumble to this unforeseen situation,
there remains one industry that deems to be more resilient than others – the
beauty industry.
The beauty industry comprises of
hair, skin, fragrance, and personal care. According to market research, the
first quarterly report projects a radical dip in sales. Even though the
businesses suffered a reduction in sales, market researchers at Truecode have
perceived that the beauty industry has countered this positively than other
sectors. Researchers at Truecode observed that the industry switched to
prioritize the sale of hand sanitizers and cleaning agents. This shift can be
seen by companies like Himalaya, Nykaa, and Biotique who are primarily beauty,
skin, and hair care brands. Companies have also attempted to promote brand
identity and social responsibility by providing free services to frontline
workers. COVID’19 is a situation that has caused greater damage than any other
recession; however companies and livelihoods depending on these industries
should survive.
Researchers at Truecode continue to
analyze how this epidemic has altered and fundamentally changed the function of
the beauty industry. How these circumstances have modified how retailers, the
middlemen, and most of all the investors have acclimatized themselves to this
state of affairs.
Due to the steady growth of the
industry and its foundation, the beauty industry was capable of bouncing back
from financial crisis’s, unfortunately, the COVID’19 situation is much graver
than any recession. In China, market research proves to show that there has
been an 80% decrease in sales during February but bounced back by March with
only a low of 20%. This is only due to the fact that the beauty industry
products are deemed to be “affordable luxury”. Although this phenomenon is
considered, there are substantial losses, as 80% of their revenue is
accumulated due to in-store sales. Even new-age millennials, prefer to touch,
feel, and try on products before they decide to purchase. As per Truecode
market researchers, these shops that have been forced to shut down to
prevailing conditions may never open up again or will be delayed by a year to
regain full capacity of operations.
Researchers at Truecode urge
companies to be optimistic, as studies show there has been a spike in online
retail. The importance of a digital presence and the value it adds in these
circumstances proves to show its magnitude in this day and age. Retailers who
have the capacity to support online demand and means for safe logistics are
benefitting from twice the sales than they had during pre-Corona. Essential
goods suppliers are also noticing a decline in sales of commodities of beauty
and hence an overall decrease in their day to day revenue. There will be a
hesitancy to shift to in-store experiences with the fear of contracting the
virus, norms of social distancing, and coming in close contact by trying on
products. Market research has also observed the shift of brands and retailers
to the promotion, creating a strong social media presence in order to clear out
inventory.
When stuck at home in quarantine,
people have stopped spending on make-up and fragrance, as we’ve shifted to a
work from home scenario. Even with ease in lockdown restrictions, researchers at
Truecode believe that make-up will make a slow recovery due to the insistence
of wearing masks.
With unlimited time to spend on
oneself during quarantine, consumers have picked up the trend of self-care and
pamper sessions. There has been an increase in sales of DIY beauty products,
grooming kits, aromatherapy, bath, and body care as we all tried our hands out
to be a barber, nail tech and built our own in-house spa treatment.
Looking at a long term altercation
in the industry, Truecode believes that retailers will emphasize more on an
online presence and aim to provide the supply that is demanded through safe,
hygienic conditions and mediums. It will be a bigger task to acquire capital
and launch new products in these times, and hence will have to put out major
business decisions. One can hope that with the little joy we get out of
dressing up just to be in our homes, or for a Zoom meeting, the industry will
survive and regain itself to much bigger heights.
