Patrick Bousquet-Chavanne, president & CEO of Americas at ESW11.01.21
Global direct-to-consumer (DTC) brands were the big winners in the flight to digital during the Covid-19 pandemic, led by Millennial and Gen Z consumers. Driven by the discovery of unique products, social media marketing, and a desire to “treat themselves,” this younger consumer is no longer limited by thinking locally when it comes to shopping.
A recent eShopWorld (ESW) survey of almost 15,000 consumers worldwide found that more than half of the Millennials surveyed (52%) made purchases online from brands located outside of their home countries during the pandemic lockdowns. Millennials outshopped their Boomer counterparts 3 to 1 with global DTC brands, a trend that shows no sign of abating.
Surprisingly, one of the biggest category winners was skincare and, to a lesser but still significant degree, cosmetics. Prior to the pandemic, the beauty industry had been operating under the premise that its products were too “high touch” to lend themselves to discovery online. Obviously, this premise is outdated. The clean beauty trend embraced by Millennials has resulted in a massive increase in online skincare sales during the pandemic. Millennials and Gen Z combined accounted for 40% of cross border purchases in skincare, cosmetics, and fragrances. Just 10% of Baby Boomers shopped outside their home countries across each of these three categories. Clearly, the shopping paradigm has shifted.
Social media’s role in driving these trends cannot be underestimated. Millennial and Gen Z consumers have a massive appetite for discovery of new brands through social media. GlobalWebIndex recently reported that 96% of social media users between the ages of 16 and 34 research products online via social networks; 60% discover brands or products via social media advertising; and 52% discover brands or products through recommendations on social media. Our data indicates that more than half (55%) of Millennials and Gen Z purchased through a social media channel with 37% of this cohort relying on social media influencers for product recommendations.
Retailers with a well-articulated digital offering, like Sephora, performed exceedingly well during the pandemic because of their powerful social engagement pre-pandemic. Targeting and engaging with these younger consumers is one of the keys to building a robust cross-border clientele. Adding in home country currency pricing, multi-lingual content, reliable shipping, and generous return policies will help DTC brands realize higher conversion rates by their Millennial consumers who are eager to discover new and exciting product, regardless of location.
A recent eShopWorld (ESW) survey of almost 15,000 consumers worldwide found that more than half of the Millennials surveyed (52%) made purchases online from brands located outside of their home countries during the pandemic lockdowns. Millennials outshopped their Boomer counterparts 3 to 1 with global DTC brands, a trend that shows no sign of abating.
Surprisingly, one of the biggest category winners was skincare and, to a lesser but still significant degree, cosmetics. Prior to the pandemic, the beauty industry had been operating under the premise that its products were too “high touch” to lend themselves to discovery online. Obviously, this premise is outdated. The clean beauty trend embraced by Millennials has resulted in a massive increase in online skincare sales during the pandemic. Millennials and Gen Z combined accounted for 40% of cross border purchases in skincare, cosmetics, and fragrances. Just 10% of Baby Boomers shopped outside their home countries across each of these three categories. Clearly, the shopping paradigm has shifted.
Social media’s role in driving these trends cannot be underestimated. Millennial and Gen Z consumers have a massive appetite for discovery of new brands through social media. GlobalWebIndex recently reported that 96% of social media users between the ages of 16 and 34 research products online via social networks; 60% discover brands or products via social media advertising; and 52% discover brands or products through recommendations on social media. Our data indicates that more than half (55%) of Millennials and Gen Z purchased through a social media channel with 37% of this cohort relying on social media influencers for product recommendations.
Retailers with a well-articulated digital offering, like Sephora, performed exceedingly well during the pandemic because of their powerful social engagement pre-pandemic. Targeting and engaging with these younger consumers is one of the keys to building a robust cross-border clientele. Adding in home country currency pricing, multi-lingual content, reliable shipping, and generous return policies will help DTC brands realize higher conversion rates by their Millennial consumers who are eager to discover new and exciting product, regardless of location.
