The fashion industries’ consumer behavior has changed drastically in the past year. The 2020 pandemic made people experience what they least expected, both in life and business. Breaking all norms and creating a new normal, 2021 has adjusted to recent changes in the makeup & skincare industry. Enterprises have started focusing on the survival of their business in the market rather than expanding it.
The fall of the fashion industry has vanished many businesses. Loss of jobs and heavy bankruptcy, and some have almost shut down their business in the past year. Predictions say the recovery of these industries will not be any time sooner.
The market conditions will go back to the previous ones only between the years 2022 to the year 2025. The spread of the virus shifted consumers’ behavior from luxury to life’s necessities over a year. The massive fall of these fashion industries has left them struggling to retain back into the market like before.
People have started saving and spending wisely only on what they need rather than what they want. Fashion is a luxury product, and these recent years portrayed how we can survive without it.
To overcome the critical stage in the market for these fashion industries, they have concentrated more on minimum sales for long-term benefit. For instance, US are lipstick sales dropped by 15% in April 2020. Japan’s population decreased by 70% compared to the previous year.
People stopped buying and wearing these lip products for months. Because whatever you wear on your lips will eventually get printed on your mask. Some brands incurred the highest sales in 2019, and due to an unexpected period of COVID, the same brands experienced huge losses the following year. To play a safe move in the distorted market, supplying the least amount and noting down consumers’ reactions has become the only way to get back into the market gradually.
These actions are due to turbulence in decision-making processes about the future. Uncertain changes in demand for luxury fashion products have made enterprises fear before investing heavily into the industry and losing it all over again.
Being stuck at home for months has cut down on physical socializing. Over the years, companies surviving in the market during the pandemic had to make a pivotal decision to avoid slipping off the market. Hence, they turned everything digital. Changing consumer expectations and values have brought in changes to the supply of beauty products.
Several brands have made advancements in the way of supplying products in digital form. AI-enabled skincare analysis and virtual try-on have enabled consumers to try makeup products while being home. To sell minimum with less risk, makeup companies have come up with personalized development of beauty products.
Studies proved that more than 70% of consumers had paid more and chosen the brand that provides customized products. In this way, brands that have incurred losses in 2020 can bounce back by supplying minimum amounts with higher prices. This will bring them back to their original positions faster.
For instance, L’Oréal has created a device for its users to have their skin conditions measured along with environmental conditions. Johnson and Johnson have created a customized skincare system that scans the user’s skin and creates 3D printed face masks through Neutrogena MaskID technology, according to users’ skin conditions.
Similarly, other beauty brands have been inventing different devices and systems to differentiate them from their competitors.
Men’s skincare and makeup entered in 2018, but in 2021, in countries like China, the production of cosmetics and skin care for men has grown. China has the fastest-growing market for men’s makeup. Following this, South Korea has also included men’s makeup products in their leading brands.
Gender-neutral makeup and beauty products breaking norms into the markets, providing products with high market sales. People have started believing in gender-neutral skin and makeup products so that no gender feels left out or ignored. Consumers who believe in such these are buying products without caring much about the price.
This will bring rising sales to companies providing such items. Products with good quality and performance are not everything in 2021. The ethical values of the company also play a massive part while supplying the users. Enterprises focusing more on environmental issues. And animal cruelty are also given attention by consumers while buying the product. Users have seen to be buying products with high prices that focus on environments and animals along with its product performance.
2020 has made industry suffer and decline; those who survived are still slowly retaining what they lost before 2021. The fashion and makeup industries must focus more on high sales growth and development in the same segment. 2021 might or might not bring the results that the companies expect.
Focusing on reliability and high quality should be the aim rather than discounts and lower prices to attract consumers faster. This can improve the stability of the business slowly and in the long term. Companies using their top part in digital media will help them gain enormous help if the world hits with another wave of COVID.
Future tactics are needed to be played carefully, keeping in mind the intense competition around the industry. Companies should become more flexible to adapt to any survival conditions. Fashion being a luxury product, will not be able to bounce back like other industries due to restricted spending power.
Making the consumers more comfortable using the online mode of shopping can cut set up costs offline. Moreover, many sunrise businesses selling trending clothes with lower prices have slowly started to rise in the industry digitally.
Through social media sites like Instagram, these infant enterprises might slowly steal domination of old ones from the market. So, using digital sources for marketing and selling can enhance the condition of the business too.
After the shockwaves of the pandemic, fashion businesses should take an overall look at what they have lost and swiftly make an effort to gain back everything in less time. Everything is not how it was in 2019; consumer behavior and market situation have changed. Overall, good market research about the industry can help avoid further failures.