04.13.23
According to a new report by global direct-to-consumer (DTC) ecommerce company ESW, 67% of Gen Z and Millennial online beauty shoppers prefer to wait for lower prices on products, even if it means risking the item going out of stock. In addition, the report found that nearly 40% of "power shoppers" who spend at least $2,500 annually on beauty products are bargain hunters.
Interestingly, the report also revealed that brands' "super fans" respond well to events that emphasize exclusivity and scarcity. These customers are willing to pay full price to be one of the first to have a product (21%) or to own a limited-edition item (25%).
The solution to this conundrum? Schealer says, “creating limited edition products, or offering top customers early access to new products, can help brands overcome price sensitivity in the beauty industry’s key demographic.”
China had the highest percentage of consumers (41%) purchasing beauty products from online retailers outside of their home country, followed by the UAE (36%), Switzerland (29%), Spain (26%), and India (22%). The U.S. and France were the most popular countries for cross-border beauty purchases, tied at 33%, followed by Germany (27%) and the UK (25%).
Interestingly, the report also revealed that brands' "super fans" respond well to events that emphasize exclusivity and scarcity. These customers are willing to pay full price to be one of the first to have a product (21%) or to own a limited-edition item (25%).
How to Entice Price-Conscious Young Consumers
ESW's VP of Sales, Beauty, Wellness & Lifestyle Brands, Clarissa Schealer, notes that despite younger consumers driving the growth of the direct-to-consumer beauty market, they remain price conscious.The solution to this conundrum? Schealer says, “creating limited edition products, or offering top customers early access to new products, can help brands overcome price sensitivity in the beauty industry’s key demographic.”
Young Shoppers More Likely to Purchase from International Retailers
The study also found that Millennial and Gen Z shoppers are more likely to purchase beauty products from international retailers, with 23% and 24% respectively making cross-border purchases within the last year.China had the highest percentage of consumers (41%) purchasing beauty products from online retailers outside of their home country, followed by the UAE (36%), Switzerland (29%), Spain (26%), and India (22%). The U.S. and France were the most popular countries for cross-border beauty purchases, tied at 33%, followed by Germany (27%) and the UK (25%).
