I want to talk to you about the health and beauty industry.
While I have always been aware that this sector is often ahead of the curve, stats and insights from the IMRG Capgemini eRetail Sales Index confirmed my suspicions earlier this month.
During a time where consumers are closely guarding their purses and being very selective with what they spend their money on, health and beauty is stealing sales from other sectors.
During the month of May, which suffered the slowest online growth on record, health and beauty recorded a 22.6% increase in sales, whilst all other categories suffered, including accessories which reported its worst performance in ten years.
I know what many of you are thinking, “well that’s a completely different category to jewellery, with completely different price points”. Yes, that is true (although I must point out some beauty products do cost the earth, or at least the same price as a pair of 9ct gold studs), but does that mean the trade shouldn’t try and take pointers from a sector storming ahead of the rest?
The health and beauty sector is doing a number of things jewellery firms could easily follow. For example, many companies are responding to the call for natural ingredients and recyclable packaging. They understand that shoppers want to know where things come from and the impact on the environment, and they have adapted their offering and communications accordingly. Are you doing anything to improve your carbon footprint or reduce plastic waste in your business? If so, shout about it. Consumers consider this when making a purchase.
Which brings me on to my next point — health and beauty firms understand the power of social media and effectively use platforms to promote products. Moreover, they are quick to embrace new innovations and ways of shopping.
The health and beauty sector have got it right when it comes to influencer advertising and engaging followers on their social channels. If customers want to shop by one click on Instagram, that’s ok, they will evolve and meet this need. If millennials favour the opinion of a blogger over an A-list celebrity, they will work with the people they know connect with their target consumer.
And taking this into store, the health and beauty sector is king of creating customer experiences. Often brands will host events which encourage consumers to try on the products and find their favourite look.
Jewellers can do this too. The most fun I had at Baselworld was when a designer helped style my outfit with her products. She showed me different looks that worked with my dress, and I was sold – I wanted to buy every piece.
Are you helping your customers fall in love with your products in-store or online? Or are you just showcasing them and hoping they will sell themselves?