Amazon plans October beauty sale to hook early holiday shoppers

Robert Hundley

Amazon staff members load bins with orders at the company’s achievement heart ahead of Cyber Monday in Tracy, Calif.

David Paul Morris | Bloomberg | Getty Photographs

Amazon designs to maintain a magnificence solutions event in October in an work to entice early holiday customers and improve the firm’s posture in a booming category, in accordance to documents reviewed by CNBC.

A slide deck Amazon sent to decide on elegance brands reported the corporation is presently preparing the party for Oct. 4-25. The exact same information was sent to some consulting corporations that help control corporations on Amazon.

“We want to attract consumers back to Amazon all through Black Friday week but also long phrase with further marketing and advertising levers,” Amazon wrote in the slide deck. “This is a exclusive chance for selected brands to access both a lot more buyers and new customers.”

Catie Kroon, an Amazon spokesperson, verified the authenticity of the doc. She told CNBC by email that the occasion following month will be known as “Holiday getaway Splendor Haul” and additional that the web-site will feature a range of solution varieties, such as fragrance, men’s grooming and wintertime pores and skin treatment.

Amazon, the world’s most significant on the internet retailer, has long been making an attempt to attain a larger share of the global elegance industry, which generates $500 billion in once-a-year profits. The enterprise began supplying overall health and magnificence products in 2000, but its collection was to begin with restricted largely to mass-current market models.

The splendor sector is of unique interest now, as shoppers have flocked to the world-wide-web to obtain makeup and own care goods all through the pandemic. On the net make-up sales surged 40{5c5ba01e4f28b4dd64874166358f62106ea5bcda869a94e59d702fa1c9707720} in 2020 from a calendar year earlier, though product sales of “self-treatment” things these kinds of as shampoo, deal with wash items and lotions climbed 59{5c5ba01e4f28b4dd64874166358f62106ea5bcda869a94e59d702fa1c9707720}, according to marketplace investigation organization 1010knowledge.

Amazon hopes to use the celebration to travel targeted traffic to future holiday break promotions, explained one particular consultant, who had discussions with Amazon and requested to keep on being nameless since the talks have been non-public. The corporation commenced achieving out to magnificence models and consulting companies in mid-August to gauge participation in the event, said Jed Rawson, CEO of e-commerce consulting company Pirawna.

While largely trapped within all through the 2020 vacation season, Us residents expended a history total of revenue from their units, according to Adobe Analytics. U.S. on the web purchases during November and December surged 32.2{5c5ba01e4f28b4dd64874166358f62106ea5bcda869a94e59d702fa1c9707720} from a yr earlier to $188.2 billion, Adobe reported.

In latest a long time, Amazon has expanded its “high quality attractiveness” subcategory to include more superior-conclude products and introduced an indie splendor shop to emphasize new and emerging manufacturers. It also rolled out specialized hair treatment sections and its personal skin care brand name.

Kroon reported splendor is one particular of the fastest-increasing types on Amazon and that it is “ripe for innovation” when it arrives to solution discovery and presentation. Amazon is “uniquely positioned to reinvent” the experience of shopping for elegance products online, she wrote.

The October event could also assist Amazon much better compete with vendors such as Ulta Natural beauty and LVMH-owned Sephora, said Elaine Kwon, who beforehand served as a seller supervisor in Amazon’s manner category and now runs Kwontified, an e-commerce management and program company. Department stores are increasingly getting rid of share in the elegance market to Ulta, Sephora and immediate-to-purchaser models these as Glossier and ColourPop.

Kwon stated Amazon has tried using to boost its sector share by featuring additional major brand names on its site and experimenting with attributes such as a “clean up natural beauty” tag, which faucets into trends all around purely natural and sustainable products and solutions.

“Sephora and Ulta have extremely, extremely successfully safeguarded their purchaser base,” Kwon stated. “This is Amazon’s way of attempting to get to out to those people prospects and give them a good working experience that tends to make them think, ‘Maybe I don’t have to go to Sephora for all of these factors, maybe I can go to Amazon for this or that.'”

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