Beauty Retail Trends of the Future

Many businesses strive to remain relevant and in tune with customer desires. In the beauty retail industry, relevance hinges on how well businesses can tailor their customers' digital interactions for a seamless experience, whether online or in-store. Here’s a closer look at the trends beauty retailers need to watch for:

Brand Positioning
Globally, beauty retail brands with physical stores are refurbishing their locations to feature a more modern and sleek aesthetic. This shift aims to position their brands as premium and encourage more customer visits. To cater to the modern consumer, these brands are also focusing on “clean” products—those free from sulfates, parabens, and other harmful ingredients. Additionally, vegan and halal products are gaining popularity, as consumers seek cruelty-free and environmentally friendly beauty options.

Merging Online with Offline Experiences
As we enter the third year of the pandemic, stores are increasingly eager to drive customers back to their physical locations. Achieving this requires seamless transitions between online and offline experiences. Beauty retail stores will incorporate more digital features, such as virtual try-ons that allow customers to see how makeup products look on them. Retailers will develop interactive software for in-store use, enhancing customer engagement.

A notable example is Sephora’s Pantone Color IQ, which scans customers' skin tones and suggests complementary products. This not only offers a personalized experience but also increases the likelihood of additional sales. As such software gains popularity, other beauty retailers will need to develop their versions of virtual experiences to engage customers effectively.

Value-Adding Services for Customers
To attract more customers, beauty stores will increasingly offer value-adding services, such as beauty treatments and tutorials. Consumers are looking for personalized experiences from the brands they support, so in-store services like facials, hand massages, and pedicures are likely to become the norm. This not only provides more value for customers but also creates opportunities for retailers to introduce additional products. For instance, a customer who originally planned to buy nail polish might leave with a hand scrub and cream after enjoying a hand massage.

E-Commerce Channels
The pandemic has accelerated the shift to e-commerce across various industries, making it essential for businesses to offer diverse online payment options. Evaluate your business and consider whether your payment methods are competitive enough. Beyond traditional card payments, explore options like PayPal, Apple Pay, and Buy Now Pay Later solutions like PayFlex.

For companies utilizing courier services, investing in fast and reliable delivery options with clear communication is crucial. Customers should never feel left in the dark about their orders, so providing real-time tracking will set you apart from competitors.

The Bottom Line
The technological acceleration driven by the pandemic means customers expect smooth digital experiences. Beauty retailers looking to stay ahead should invest in making their online experiences seamless while also enhancing their brick-and-mortar stores. Consider how to integrate technology—both online and offline—to create personalized digital experiences for your customers.