HomeFEATURESHow the growing at-home beauty market is being supported by an evolving retail environment

How the growing at-home beauty market is being supported by an evolving retail environment

The beauty industry globally has a steady annual growth rate of 4.75 percent and total revenue is expected to top $661.3 billion by 2027. The New Zealand beauty industry is contributing to this upward trend. The beauty accessories category in New Zealand pharmacy alone is worth over $15.9 million and growing at 2.7 percent.

Innovation in the at-home beauty market is key to driving the growth both globally and in New Zealand and is redefining the industry. New products such as those from Manicare, SugarBaby and Glam by Manicare have emerged recently with mass market appeal, and consumers finding inspiration in innovation.

The growth is due to a number of factors including: salon closures due to lockdowns and less people now looking at home beauty hacks as well as the ease of accessibility from retailers and e-commerce channels.

Rachel McKendry, Marketing Manager at McPherson’s spoke to me about this growing beauty trend, and how her brands have been able to tap into a changing New Zealand retail market.

Amelia Fonotoe and Rachel McKendry (right).

Why do you think the beauty industry is growing in popularity?

Covid-19 and lockdowns have played a role in the beauty category growing, especially at-home DIY beauty. Access to beauty salons has been impacted and beauty priorities have shifted, so consumers have begun adapting their beauty routines accordingly while also spending more time caring for their skin.

According to an IRI State of the Industry Survey 2019 & 2020, 38 percent of household shoppers are going less often to hair/beauty salons/spas than they did pre-Covid.

Shoppers are also resonating with innovation and technology. With technology and beauty tools colliding, consumers are now able to be the master of their own skin over needing to rely on a beautician.

Beauty and wellness are becoming synonymous – it is becoming more evident that beauty is not just about beauty on the surface it is also about beauty from within. Consumers are wanting a more mindful and holistic approach to their beauty regime.

What are some factors you think customers take into account when purchasing from a beauty brand?

Digital driven beauty habits are influencing consumers – virtual try-ons, beauty systems to personalise skincare choices. The fact is that consumers are changing the way they shop with a significant rise in online shopping – only 10 percent of Kiwi women say they are NOT buying beauty products on line.

Covid lockdowns have demonstrated the importance on having products online. It’s become important that retailers not only a brand sold in-store but also available to buy online.

Shoppers are also becoming more savvy, 74 percent of consumers read beauty reviews prior to purchasing a product. And, over 85 percent agree that product reviews influence their decision to purchase.

Personalisation also plays a role – such as finding out what skin type you are.

What has the relationship with Farmers been like? How have they assisted with McPherson’s growth in NZ?

The relationship with Farmers has been a successful one as evident in the exclusivity deal with SugarBaby. On launch, SugarBaby was ranged in 26 Farmers stores. Following such a successful launch period, the range was rolled out to all 52 stores six months later. Farmers have assisted in this growth with support through its social media channels, catalogue work and beauty box send outs to key beauty influencers.

Why do you think more people are turning to at home beauty treatments/products? And how does McPherson’s brands meet these new trends?

Following relaxing of lockdown restrictions, consumers have stuck with their new at-home beauty routines due to ease, convenience, and affordability of these tools. McPherson’s and particularly the Manicare brand are continuing to innovate in this space to ensure new products are revolutionary, while also easily assessable and affordable for consumers.

SugarBaby Glow Your Own Way Reusable Cleansing Pads.

How have Manicare’s new innovative tools been received by customers?

These tools have been well received by consumers.  Of note, the Manicare Derma Roller has been recognised by The Beauty Review with a Top Rated beauty award, achieving a beauty rated score of 4.4/5.

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