Sampling From Home: How Cosmetic Retailers are Adapting to E-Commerce

Technology has become integral to shopping as consumers have shifted away from buying products from brick and mortar stores. The COVID-19 pandemic has accelerated this shift and facilitated the growth of e-commerce, forcing companies to adapt their businesses to maintain or improve consumer spending habits. The cosmetic industry in particular has been experiencing success in leveraging the growth of e-commerce.

Part of the success of cosmetic companies in e-commerce is attributable to their adoption of technologies that allow consumers to replicate a traditional retail shopping experience from home. For example, in response to the COVID pandemic, Estee Lauder launched virtual try-on sessions in which augmented reality technology allowed consumers to see how a cosmetic product performed on their skin. Similarly, Google recently launched an integration with a L’oreal Cosmetics-owned technology start-up that allows customers to visualize the application of cosmetics from a number of brands. In addition to virtual product application, cosmetic companies are leveraging e-commerce through a reliance on social commerce. Estee Lauder, for example, used shoppable livestreams and digital consultations to connect with consumers from home, while Google introduced influencer marketing to its shopping platform by way of presenting influencer recommendations on Google Shopping searches. Cosmetic companies, by adapting their technologies to allow consumers to experience products as they normally would and by introducing ways to use e-commerce as a means of social connection, have been able to respond to shifts in consumer spending habits.

Author: Nargis Fazli