In the aftermath of COVID-19, people are rethinking many aspects of how life used to be and how it will change in the future. Virtually all industries have made at least some form of metamorphosis. The beauty industry wasn’t immune from this sweeping sea of change. The following are 3 of the most prominent changes that have recently come about:
Chapter Overview
1. Sales Have Fallen Overall
Many businesses within the beauty industry have experienced unprecedented revenue losses, broken supply chains, and challenges to solvency in the aftermath of the COVID-19 crisis.
The first challenge was that many beauty-related businesses were deemed “non-essential” and were ordered by their governments to close. The next challenge was the devastating decline in demand for their products. This is a multi-part problem; the first issue is that people who plan to stay home are less likely to care what they look like, and therefore less likely to spend on cosmetics or other related beauty items. What woman is going to buy new lipstick when her mouth is hidden behind a mask?
The other issue is that significant amounts of revenue used to come from people who have now lost their jobs. So even if there are still people who would be inclined to spend on haircuts and face lifts, these items are now taking a backseat while people focus their spending on necessities like rent and food.
As a result of these circumstances, many beauty businesses have found that their sales have taken an unexpected nosedive. This is a primary challenge to be overcome, and it is the reason that so many beauty businesses have permanently closed.
There are, however, unexpected bright spots, with some beauty categories maintaining and even gaining sales. For example, many cosmetics purveyors are finding that sales of soaps and bath-and-body products have held steady despite the downturn.
2. Innovation Is Driving Profitability for the Survivors
There’s no doubt that beauty businesses have had to be resilient to stay afloat in these challenging times. Some manufacturers have adapted by shifting their focus from making cosmetics to manufacturing hand sanitisers and cleaning supplies. Others focused their efforts on combating “mascne”, an unpleasant skin condition that can result from wearing a mask against acne-prone skin.
Other businesses haven’t had to pivot in their product offerings because they have relied on technological innovation to keep them afloat. In many cases, these businesses had already built a strong client base based on solid relationships combined with implementation of the latest and highest-demand technologies.
Cosmos Clinic is an example of such a business that has thrived in the wake of COVID-19. Prior to the virus crisis, their practitioners had made an effort to become experts in the latest technologies including J-Plasma Renuvion and Coolsculpting. Their previous investment in these innovations has allowed them to remain an industry leader despite the downturn.
And then some businesses, particularly those that are product based rather than service based, have survived by revamping their websites to encourage more online shopping.
3. Inclusivity Is Rising
In the United States, George Floyd’s death was an incident that was seemingly unrelated to Coronavirus — yet it made a huge impact on the world. At virtually the same time businesses were figuring out how to implement social distancing, they were also struck by the need to re-evaluate their policies regarding diversity and inclusivity.
This happened largely as a result of the backlash surrounding Floyd’s death, but the circumstances surrounding COVID-19 also played a role as experts questioned why COVID seems to affect a disproportionately high number of people of color. The resulting conversations regarding diversity and inclusion have radiated out from across the pond to affect businesses and organisations around the world.
Inclusivity is an issue that is particularly relevant to beauty businesses, whose executives are concluding that their offerings must serve a more diverse and inclusive client base if they hope to remain profitable. For example, cosmetics manufacturers have determined that offering a greater range of shades for skin-colored products such as concealers and powders will allow them to remain relevant to a broader group of clients; many have worked tirelessly to add to their color lines.
These aren’t the only ways that the beauty industry is changing as a result of COVID-19, but these are some of the most noticeable and noteworthy changes that have been occurring. While the virus crisis has mostly had a detrimental effect on the beauty industry thus far, the industry has historically been a resilient one. The question remains how long it will take for the industry to return to some semblance of “normal”.