While many industries can benefit from eCommerce, others are positioned to help more. Among these are Consumer goods, Fashion and Apparel, and Beauty and Personal Care. This article will focus on these industries and how they can benefit from the growth of the internet.
Fashion and Apparel
The Fashion and Apparel industry is one of the sectors that eCommerce growth will most impact. While the fashion industry faces several challenges in this area, there are also several opportunities. The industry is expected to witness a significant increase in eCommerce revenue by 2027. It is projected to grow from a $365 billion market in 2021 to $530.3 billion by 2027, making it one of the largest industries to benefit from eCommerce.
Ecommerce can have several benefits for retailers, including an easy, convenient way for consumers to shop for their favorite brands. E-marketplaces are a popular alternative to traditional retail stores, reducing costs and inventory while building brand loyalty. Moreover, e-commerce can be implemented by small companies that lack the resources and experience of international brands. This way, they can leverage the benefits of e-commerce and differentiate themselves from their competitors.
The growth of eCommerce has accelerated in the Fashion and Apparel industry. According to BigCommerce, sales of fashion and apparel on e-commerce platforms will surpass $1 trillion by 2022. According to the report, the U.S.’s fashion and clothing e-commerce revenue will grow by 25 percent during the first quarter of 2022.
Many fashion brands have implemented omnichannel strategies to create a solid online brand presence on multiple platforms. These include direct-to-consumer models and click-and-collect concepts. In addition, many online fashion brands incorporate social media into their eCommerce marketing campaigns. With more than 15% of the global population logging on to social media daily, social media has become an integral part of a successful eCommerce strategy.
In addition to omnichannel commerce, fashion brands also experiment with metaverse commerce. According to a recent survey sponsored by BigCommerce, 46% of online shoppers would be willing to shop in a virtual world. Brands such as Gucci and Hermes have already invested in virtual storefronts where customers can buy apparel.
Beauty and Personal Care
Ecommerce is transforming the way consumers shop for beauty and personal care products. This industry is poised to grow at a staggering rate, reaching over $70 billion by 2024. Ecommerce platforms are introducing innovative marketing strategies to compete in this growing sector.
The Beauty and Personal Care industry is among the most competitive and sophisticated categories. Despite this, the barriers to entry are lower than ever. With millennial consumers driving the shift, brands have an increased opportunity to stay ahead of the competition. As a result, they are increasingly adopting customer-centric models that integrate physical and digital channels. These models include customizable subscription-based models that deliver periodic packages to consumers’ doorsteps.
Social media is also revolutionizing the marketing strategy of big beauty brands. With millennials driving the trend, visual-focused social media synergizes with the beauty industry. Young consumers are increasingly turning to these platforms for knowledge and advice. For example, the success of Kylie Jenner’s cosmetics line is directly related to the success of her social media accounts.
As a result, many consumers are now turning to eCommerce for the products they want. Despite a lack of local stores, eCommerce has the potential to drive sales growth in the Beauty and Personal Care industry. By 2021, McKinsey projects that e-commerce will account for 35 percent of the U.S. beauty industry, up from just 20 percent pre-crisis. Meanwhile, industry analyst IBISWorld forecasts 7.4% growth in the industry this year. This pandemic has given birth to new consumer shopping behaviors, many of which are likely to stick around.
The global beauty and personal care products market will be valued at USD 482.8 billion by 2021. It is projected to grow at 7.7% CAGR over the next eight years. Consumers’ increasing concern over appearance and the introduction of natural cosmetics drive this market’s growth.
Whether grocers want to get into private-label beauty or opt for the more traditional route, a critical first step is to evaluate how much your customers are willing to spend. While there are many ways to launch private-label beauty products, bringing new products to a store can be tricky. It may require substituting core grocery items to get new offerings into the store.
The Beauty and Personal Care industry has become increasingly tech-savvy thanks to influencers and content creators. Social media is a critical factor in consumers’ purchasing decisions. Social media influencers, especially millennials, are becoming influential in their field. Beauty brands can engage their audience by providing the right content and turning negative feedback into positive experiences.
Ecommerce also allows companies to try new ways of engaging with their customers. For example, Boie has seen its sales increase 100% in one year. The company’s focus is on eco-friendly and sustainable personal care. Another example of social selling is Soft Services, a company that sells skin care products, guides, and digital tools. It is committed to reducing waste and has grown by 100%.
Consumer goods
The consumer goods industry is on the cusp of a technological revolution that is fundamentally changing how people consume goods and services. Building consumer brands is becoming less of an art and more of a science. Technology is driving this shift, and organizations are becoming more data-driven. Four key factors are driving this transformation.
Ecommerce is changing supply chains and workforces around the world. The global health crisis has impacted shopping patterns and product launches. Companies are scrambling to adapt to the evolving regulations, increase production, and safeguard their people and customers. Inflation and financial uncertainty are global challenges, requiring companies to balance cost-effective products with consumer demands for convenience and value. GlobalData has developed two reports to help companies navigate this new environment: Ecommerce in Consumer Goods, 2022 Update, and GlobalData Thematic Research.
COVID-19 has been the catalyst for a burgeoning eCommerce industry. The report outlines the many benefits and challenges of eCommerce. The report highlights how businesses can overcome these challenges to stay competitive and ahead of the curve. It also highlights how the global economy is becoming increasingly digital.
Technology is critical to e-commerce success. Ecommerce marketplaces allow companies to offer their consumers a wide range of products with minimal inventory and warehouse costs. Furthermore, partnerships with other brands and retailers help businesses broaden their product offerings and generate alternative revenue streams. In fact, in 2019, Amazon alone derived $14 billion in advertising revenue. This represents eleven percent of their overall revenue.
As a result, the consumer goods industry is increasing. Online sales are increasingly profitable for clothing, food, and household goods brands. In the U.S., eCommerce sales are expected to reach $100 billion by 2021. It will hit $91.7 billion in 2020. It is estimated that online grocery will surpass health and beauty as the top online CPG category by 2021.
Ecommerce is transforming the way people buy goods and services. Everyone will benefit from the increasing availability of information and the ability to sell at scale. Many industries are gaining from eCommerce, including entertainment, white goods, and home accessories. Moreover, eCommerce has a significant impact on the economy.
As eCommerce becomes more popular, brands must innovate to stay competitive. Consumers make buying decisions differently than in stores, so focusing on value rather than price is imperative. Many brands are incorporating virtual reality, augmented reality, and gamification to attract consumers. However, they must overcome several hurdles to convert a virtual basket into an eCommerce sale. Also, payment processing must be simple and streamlined across industries.
