Clarkston Partner Sarah Broyd Shares Insights for Beauty Retailers
July 15, 2024 | Clarkston partner and beauty industry expert Sarah Broyd spoke to Beauty Independent about how beauty retailers can stay ahead of competition and shares insights on Amazon’s rise in beauty sales. See Sarah’s feature from the article below, and read the full article here.
How Beauty Retailers Can Maintain Their Edge As Amazon Encroaches
“Amazon is poised to take over Walmart as the leader in beauty sales in 2025 and become the No. 1 beauty retailer. While Walmart’s “every day low price” pricing strategy is a far cry from luxury goods, this show’s Amazon’s growth in the space and something that luxury brands should keep an eye on. Prestige products, beauty and otherwise, have trailed the rest of the industry in direct-to-consumer sales strategies and third-party marketplaces like Amazon.
Historically, luxury goods sell with a high touch approach, which equated to in person shopping. This, combined with the beauty counter experience, has created a lag in prestige beauty selling online. The pandemic forced a lot of companies to innovate and build direct relationships with consumers through their websites, which has helped beauty companies expand their omnichannel strategies.
As Amazon grows, I think prestige products will need to figure out if they want to be a leader or a follower, especially as consumers become more comfortable shopping online. Protecting your brand integrity and securing the supply chain should be at the forefront of how prestige products sell online, but they also need to meet their consumers where they are. And, sometimes a consumer may just need mascara or lipstick within a 2 day shipping window.”