Beauty products

Next Woah Skincare and Boohoo Beauty are wisely jumping into the growing online beauty boom, according to GlobalData

In 2020, UK beauty and grooming e-commerce jumped 42%, largely driven by consumers’ desire for convenience, time savings and lower prices, according to GlobalData. By 2025, the data specialist said the UK’s online health and beauty market is set to grow further, reaching a net worth of €7.9bn (£6.6bn) and growing at a CAGR of 10.4% between 2019 and 2025 – an established trend to follow globally, according to Edge by Ascential which suggested that 50% of global growth in health, beauty and personal care up to in 2026 would be e-commerce.

And as innovation and expansion among major beauty players continued in e-commerce, other brands and sectors were also enjoying the growth.

Earlier this month, clothing and home goods retailer Next launched a vegan skincare range from its own online brand ‘Woah’, featuring a selection of 16 products, from serums to cleansers. and creams, all designed to suit most skin types. Online fashion brand Boohoo has also launched a vegan makeup range “Boohoo Beauty”, with 50 cruelty-free products, including bronzers, lipsticks, contour sticks and fake tan.

‘A step in the right direction’

GlobalData said the two apparel majors’ move to online beauty was a wise move for several reasons, one being the potential for growth. The well-established UK online clothing market was expected to grow more slowly than health and beauty, for example, at a CAGR of 7% between 2019 and 2025. Consumer demand for alternatives to beauty brands was also growing. rise.

“By branching out into own brand beauty, these two retailers are taking a step in the right direction as shoppers are ready to swap health and beauty products as they face a rising cost of living. in 2022″,said Juliet Cuell, retail analyst at GlobalData.

“While many are turning to discounters, including Savers, Aldi and B&M, the own brand health and beauty lines will appeal to those who want to spend less but still want to buy items with certain product references, including vegan, which discounters tend not to offer,”Cuell said.

Consumer demand for convenience also continued to rise, so the ability to buy clothes and beauty items in one place was also attractive, she said. “Boohoo might suggest makeup products that would go well with party clothes when shoppers browse clothes to encourage impulse purchases.”

Booming online beauty pageant

According to GlobalData, Next’s decision to price its Woah beauty range below Boots’ #7 range could work in its favor – “he has the potential to steal Boots’ spending”​ because 29% of Boots buyers have already bought clothes from Next.

For Boohoo, the company had clearly chosen to price its line for younger consumers who typically spent less on health and beauty products, GlobalData said, targeting those who wanted “recreate a fashionable makeup trend seen on social networks”​.

All of this, he said, was proof that these multi-channel apparel retailers were “become more agile”​ and become a competition not only for other multi-channel retailers, but also for pure online retailers, including those specializing in beauty.

“Online pure players including Feelunique and Lookfantastic – who currently do not have their own brand – must not become complacent or they risk falling behind,”Cuell said.

Feelunique was recently acquired by beauty retail leader Sephora, signaling the promise of deeper European expansion for beauty e-commerce site pureplay. Lookfantastic was owned by The Hut Group – a major company currently on a “meteoric rise” after numerous acquisitions and expansions in recent years – however, GlobalData retail analyst Mahya Agorlou previously said the group should invest in the own-brand beauty innovation to deepen its customer base and stay ahead of the competition.

Cuel said: “To differentiate themselves from apparel retailers’ own-brand beauty, online pureplays should develop ingredient-driven ingredients, such as vitamin C, organic skincare and affordable makeup.”