Over 30% of Affluent Personal Care & Beauty Shoppers Dismiss Price in Favor of Premium Experiences

New Report by 2 Visions Reveals Shift Towards Quality and Service in Personal Care and Beauty Ecommerce

CHARLESTON, S.C., April 29, 2024 /PRNewswire/ — The latest insights from the 2024 Personal Care & Beauty Products Ecommerce Market Research Report conducted by 2 Visions in collaboration with Nosto have unveiled that over 30% of high-income shoppers are not swayed by price when purchasing personal care and beauty products, a larger proportion than previously expected. Instead, they favor convenience and same-day availability, signaling a growing shift in ecommerce strategies targeting affluent consumers in this space.

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View the full 2024 Personal Care & Beauty Ecommerce Market Research Report.

The study, conducted from February to April 2024, surveyed 2,259 American consumers, uncovering insights that highlight the evolving dynamics between traditional shopping behaviors and emerging digital preferences. Despite a notable trend toward online shopping, a significant portion of consumers still appreciates the in-store experience, emphasizing the need for a balanced omnichannel retail strategy.

Key Highlights from the Report:

• Only 33.33% of high-income shoppers are motivated by sales for these items, suggesting a preference for value-added services.
• Subscription services are underutilized by affluent consumers, signaling opportunities for targeted marketing strategies.
• Among in-store-first shoppers, 23.58% still prioritize the ability to research and compare products online, emphasizing the need for easily accessible product information across shopping platforms.

Researchers delved into a breadth of insights critical for ecommerce leaders, including:

• Hybrid Shopping Preferences: The report delves into the growing preference for hybrid shopping experiences, where consumers integrate online and in-store interactions. It discusses how various demographics, especially Gen Z and high-income earners, balance the immediacy of in-store purchases with the convenience of online shopping, providing strategies for ecommerce brands to cater to this evolving shopper behavior.
• Impact of Warranty and Return Policies on Consumer Trust: An in-depth analysis shows how warranty and return policies significantly impact consumer purchasing decisions across different demographics. The findings reveal a strong consumer appreciation for transparent and favorable policies, offering opportunities for brands to enhance trust and loyalty.
• Consumer Discovery Channels: This section explores the primary channels through which consumers discover new personal care and beauty products, from online platforms to social media. The importance of a robust digital presence and effective search engine optimization (SEO) is emphasized, along with the potential of social media marketing to capture the attention of younger consumers.
• The Role of Pricing in Online Versus In-Store Shopping: The report examines consumer perceptions of pricing, challenging the notion that online always offers better deals. It provides insights into how ecommerce platforms can fine-tune their pricing strategies to be more competitive with physical retail outlets.
• Emotional Connections and Brand Loyalty: The report investigates how emotional connections, cultivated through personalized shopping experiences, exceptional customer service, and community involvement, are crucial for fostering brand loyalty among online shoppers, going beyond traditional factors like price and promotions.

Yates Jarvis, Principal at 2 Visions, commented on the findings: “The landscape of ecommerce is rapidly evolving, driven by a new generation of consumers who demand efficiency and speed. Our latest report sheds light on these changes, highlighting the critical need for brands to adapt to these faster service expectations without compromising on quality or experience.”

Mallory Tartaglione, Marketing Manager – North America at Nosto, added: “The findings of this study emphasize how important it is for ecommerce brands within this sector to leverage on-site personalization in adapting to new customer demands. This vertical has experienced significant growth in recent years, and it is unsurprising to see many consumers now reporting concern over product variety, for instance. Fortunately, this is something personalization software can help remedy—enabling online brands to finetune shoppers’ product discovery journeys by surfacing relevant items based on their affinities, past purchases, and more. This report provides fresh, industry-specific insight that personal care & beauty brands should acknowledge to ensure they stay abreast of new consumer pain points and demands.”

This report is part of a broader initiative by 2 Visions to release a series of industry-specific market research reports throughout the year, covering sectors such as Electronics, Home Decor, Wine, Jewelry, Clothing & Accessories, Toys, Supplements & Specialty Foods, and Music & Sound Equipment.

About 2 Visions

2 Visions is an award-winning consulting and market research firm specializing in helping direct-to-consumer (DTC) ecommerce brands grow by developing their in-house capabilities for long-term success. Founded by Yates Jarvis, who has worked with notable companies such as TGW, Ancient Nutrition, Kay, DIFF Eyewear, Jeep, and Spanx, 2 Visions focuses on high-touch teaching and side-by-side collaboration to empower brands to avoid costly missteps and build profitable ecommerce strategies.

The firm’s unique consulting approach involves working directly with senior leadership and key employees to pursue high-leverage opportunities, enabling brands to scale faster and more efficiently. On the research side, 2 Visions offers in-depth, granular market research, which serves as a secret sauce for clients aiming to improve personalization, AI, and targeted journeys in ecommerce customer experiences. Their research enables clients to uncover powerful data-driven insights and develop more effective marketing and CX strategies tailored to their target audiences. For more information, visit 2visions.org.

About Nosto 

Nosto is the intelligent Commerce Experience Platform (CXP) that gives brands and retailers intuitively designed tools to increase online revenue through end-to-end commerce experience management.

With experience.AI, Nosto helps brands enrich and activate customer, product and content data in real-time across personalization, product discovery, and user-generated content to deliver high-performing commerce experiences at scale.

Nosto supports intelligent commerce experiences for more than 1,500 brands in over 100 countries, including Kylie Cosmetics, Dermalogica, Belstaff, The Travel Corporation, BYLT Basics, Douglas, MUJI, Flight Center, Lord and Taylor, Vuori, FIGS and more.

SOURCE 2 Visions