Aliababa, Amazon, JD.com and Pinduoduo will account for 65% of global online beauty sales over the next 5 years
Alibaba, Amazon, JD.com and Pinduoduo will account for over half of the world’s online health an beauty sales between 2020 and 2025.
Online health and beauty sales are set to rise by 16.5 per cent this year, increasing to 23.3 per cent by 2025, according to new data from Retail Insight.
A whopping 65 per cent of all sales in the category will be made via Amazon and the three Chinese ecommerce giants Alibaba, JD.com and Pinduoduo.
This year Alibaba is expected to achieve sales in the sector of $43.2 billion, significantly more than its nearest rival Amazon’s $28.8 billion in sales and more than double Pinduoduo’s $16.8 billion.
“With COVID-19 driving increased demand for health and beauty products, many retailers are planning further inroads into the category via enhanced online services and product lines,” Edge by Ascential’s senior retail analyst Florence Wright said.
“However, as department stores experience a -10.9% fall in growth in 2020, more beauty brands will be forced to diversify and focus on investing in online to expand reach and boost growth.
“The rapidly developing digital outlook, coupled with the growing dominance of online players like Amazon and Alibaba, highlights how crucial it is to enhance omnichannel offerings and online capabilities.
“This includes strong search optimisation, as well as powerful online visual merchandising as a means to recreate the in-store experience and to better engage with shoppers.”
Here in the UK health and beauty sales are due to rise by five per cent this year, well above the global average of 1.8 per cent.