Amazon is planning a magnificence merchandise occasion for October to hook early vacation buyers

0
24

Amazon workers load containers with orders on the firm’s achievement middle forward of Cyber Monday in Tracy, Calif.

David Paul Morris | Bloomberg | Getty Photographs

Amazon plans to carry a magnificence merchandise occasion in October in an effort to lure early vacation buyers and increase the corporate’s place in a booming class, based on paperwork reviewed by CNBC.

A slide deck Amazon despatched to pick out magnificence manufacturers stated the corporate is presently planning the occasion for Oct. 4 by Oct. 25. The identical data was despatched to some consulting companies that assist handle companies on Amazon.

“We wish to draw clients again to Amazon throughout Black Friday week but in addition long run with further advertising levers,” Amazon wrote within the slide deck. “This can be a distinctive alternative for chosen manufacturers to succeed in each extra buyers and new clients.”

Catie Kroon, an Amazon spokesperson, confirmed the authenticity of the doc. She informed CNBC by e-mail that the occasion subsequent month can be referred to as “Vacation Magnificence Haul,” and added that the location will characteristic various product sorts, together with perfume, males’s grooming and winter skincare.

Amazon, the world’s largest on-line retailer, has lengthy been attempting to achieve a much bigger share of the worldwide magnificence market, which generates $500 billion in annual sales. The corporate began offering well being and wonder merchandise in 2000, however its choice was initially restricted principally to mass-market manufacturers.

The wonder market is of specific curiosity now, as customers have flocked to the web to purchase make-up and private care objects in the course of the pandemic. On-line make-up gross sales surged 40% in 2020 from a 12 months earlier, whereas gross sales of “self-care” objects like shampoo, face wash merchandise and lotions climbed 59%, based on market analysis agency 1010data.

Amazon hopes to make use of the occasion to drive visitors to approaching vacation promotions, stated one guide, who had discussions with Amazon and requested to stay nameless as a result of the talks have been personal. The corporate started reaching out to magnificence manufacturers and consulting companies in mid-August to gauge participation within the occasion, stated Jed Rawson, CEO of e-commerce consulting company Pirawna.

Whereas largely caught inside in the course of the 2020 vacation season, People spent a report amount of cash from their gadgets, based on Adobe Analytics. U.S. on-line purchases throughout November and December surged 32.2% from a 12 months earlier to $188.2 billion, Adobe stated

In recent times, Amazon has expanded its “premium beauty” subcategory to incorporate extra high-end merchandise and launched an indie beauty store to focus on new and rising manufacturers. It additionally rolled out specialized haircare sections and its own skincare brand.

Kroon stated magnificence is without doubt one of the fastest-growing classes on Amazon, and that it is “ripe for innovation” in terms of product discovery and presentation. Amazon is “uniquely positioned to reinvent” the expertise of shopping for magnificence merchandise on-line, she wrote.

The October occasion may additionally assist Amazon higher compete with retailers like Ulta Beauty and LVMH-owned Sephora, stated Elaine Kwon, who beforehand served as a vendor supervisor in Amazon’s trend class and now runs consulting agency Kwontified. Shops are more and more shedding share within the magnificence market to Ulta, Sephora and direct-to-consumer manufacturers like Glossier and ColourPop.

Kwon stated Amazon has tried to spice up its market share by that includes extra main manufacturers on its website and experimenting with options like a “clear magnificence” tag, which faucets into tendencies round pure and sustainable merchandise.

“Sephora and Ulta have very, very efficiently protected their buyer base,” Kwon stated. “That is Amazon’s approach of attempting to succeed in out to these clients and provides them a fantastic expertise that makes them suppose, ‘Perhaps I haven’t got to go to Sephora for all of these items, possibly I can go to Amazon for this or that.'”

WATCH: Amazon CEO Andy Jassy’s full interview with CNBC