Amazon plans October beauty sale to hook early holiday shoppers

Amazon workers load containers with orders on the firm’s achievement heart forward of Cyber Monday in Tracy, Calif.

David Paul Morris | Bloomberg | Getty Photographs

Amazon plans to carry a magnificence merchandise occasion in October in an effort to lure early vacation consumers and increase the corporate’s place in a booming class, based on 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 means of Oct. 25. The identical info was despatched to some consulting corporations that assist handle companies on Amazon.

“We need to draw clients again to Amazon throughout Black Friday week but additionally long run with extra advertising and marketing levers,” Amazon wrote within the slide deck. “It is a distinctive alternative for chosen manufacturers to achieve each extra consumers and new clients.”

Catie Kroon, an Amazon spokesperson, confirmed the authenticity of the doc. She informed CNBC by e mail that the occasion subsequent month will probably be known as “Vacation Magnificence Haul,” and added that the location will function various product sorts, together with perfume, males’s grooming and winter skincare.

Amazon, the world’s largest on-line retailer, has lengthy been attempting to achieve a much bigger share of the worldwide magnificence market, which generates $500 billion in annual gross sales. The corporate started providing well being and wonder merchandise in 2000, however its choice was initially restricted largely to mass-market manufacturers.

The wonder market is of explicit curiosity now, as customers have flocked to the online to purchase make-up and private care objects in the course of the pandemic. On-line make-up gross sales surged 40% in 2020 from a yr earlier, whereas gross sales of “self-care” objects like shampoo, face wash merchandise and lotions climbed 59%, based on market analysis agency 1010data.

Amazon hopes to make use of the occasion to drive site visitors to imminent vacation promotions, stated one marketing consultant, 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 corporations in mid-August to gauge participation within the occasion, stated Jed Rawson, CEO of e-commerce consulting company Pirawna.

Whereas largely caught inside in the course of the 2020 vacation season, Individuals spent a document amount of cash from their gadgets, based on 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 magnificence” subcategory to incorporate extra high-end merchandise and launched an indie magnificence retailer to focus on new and rising manufacturers. It additionally rolled out specialised haircare sections and its personal skincare model.

Kroon stated magnificence is likely one of the fastest-growing classes on Amazon, and that it is “ripe for innovation” in relation 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 Magnificence 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. Malls are more and more shedding 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 means of attempting to achieve out to these clients and provides them an ideal expertise that makes them suppose, ‘Possibly I haven’t got to go to Sephora for all of this stuff, possibly I can go to Amazon for this or that.'”

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