Today, we are going to focus on the cosmetics industry, which we all know has suffered during the pandemic. I believe that this topic is essential for many people because many use the products of this brand and want to know how they are doing with their sales and the general climate of the company.
Global Beauty Industry
The industry is responding favorably to the issue, with firms shifting production to manufacture hand sanitizers and cleaning agents and giving free beauty treatments to front-response workers. At the same time, industry representatives must do all possible to safeguard the survival of their firms. Beauty may be open to interpretation, but there is no doubt about the beauty and wellness firm’s long-term desirability (Gardner, 2021). It has developed gradually, but it has also produced decades of devoted customers.
Before COVID-19, in-store retail accounted for up to most of the sales of cosmetics companies in most of the leading cosmetics markets, with some differences by category. American millennials and Gen Z have spent more than half of their money in stores, even those available online (Venkatesh, 2020). With the closure of luxury beauty retail outlets due to COVID-19, about a quarter of the cosmetics industry has closed. Some of these businesses will never reopen, and new ones will most certainly be postponed for at least a year.
COVID-19 has transformed the landscape of several sectors worldwide, including the cosmetics business, bringing new problems and potential for firms. While the once-thriving cosmetics sector has fared much better than some other industries and sectors, 2020 is likely to be one of the most challenging years it has ever faced. The expansion of COVID-19 and the accompanying store closures and social distancing measures implemented by governments have had a substantial influence on consumption and sales, forcing businesses to create new ways to broaden their consumer base and generate money.
Trends before COVID-19 are projected to increase, with mail servers, such as websites, online shopping networks, and markets, becoming increasingly important. Consumers throughout the world say they plan to boost their online participation and spending (Gerstell et al., 2020). To grab and convert the interest of existing and new customers, beauty industry operators will need to prioritise digital platforms. However, occasionally, supply is unable to keep up with demand. Before the pandemic, businesses were under pressure to rework their merchandise processes, motivated by the capability of specific electronic brands to get from idea to cabinet in less than a month (Pikoos et al., 2020). A need for quickness has never been more substantial. To do this, contract manufacturers may play a more significant role in terms of diversification and as thinking partners in product creation. Through sharing data and inventory pooling, there is also the possibility of greater collaboration, notably between brands and merchants.
Large corporations have already started to use Augmented Reality (A.R.) in their corporate strategy prior to the epidemic as a method of engaging younger consumers and increasing consumer interaction. The use of A.R. will only grow as firms try to fill the gap between online shopping and cinder block locations (Borromeo, 2021). M.A.C. the latest cosmetic behemoth to join the trend, offering a virtual try-on option in collaboration with the app YouCam (Borromeo, 2021). Users may virtually test on decorative goods before buying them. It reflects the company’s view that A.R. will play an essential role in the industry’s future. Brands are more likely to benefit from A.R. (Borromeo, 2021). Simultaneously, shutdowns stay in place, and hygiene precautions are more strict, especially for most cautious customers in safeguarding themselves against coronavirus infection.
Digital Marketing Strategies to Successfully Pivot the Company
When it relates to customer and business requirements, the epidemic has altered things in some manner, whether minor or significant, for every company out there. Since the beginning of the COVID-19 epidemic, life has changed dramatically. Nowadays, it appears that almost anyone can accomplish nearly anything from the comfort of their own home (Manolova et al., 2020). More individuals live online, from Zoom meetings to midnight munchies via door-to-door delivery applications.
While more individuals have stayed at home to restrict the propagation of the coronavirus, there has been an increase in internet purchasing, browsing, and social media usage. Before the epidemic intensified the digital tendency, online shopping grew extremely popular (Kang et al., 2020). Therefore, even if we develop an effective vaccination, it is doubtful that everyone will revert to their former buying habits. A company can make it simpler for individuals to identify it, buy its products and services, and become loyal customers with a comprehensive digital marketing strategy (Bharwani and Mathews, 2021). If no one can locate its site, it will undoubtedly influence revenue.
Email marketing is still regarded as among the most effective digital advertising mediums. The reality is that if a company can master email marketing, it can completely change its destiny. Relationship and value are the elements of an effective email marketing strategy. Email is a beautiful medium for developing customer relationships and consumers by providing free studies, policy documents, helpful advice, and publications, among other things. Marketing automation can be very successful and satisfying, but it is essential to take the time to establish solid lists in order to make the most of your time working.
Challenges and Opportunities
M.A.C. Cosmetics, like many other beauty companies, relies not only on offline trading but also online. During the pandemic, many people thought that brands like M.A.C. would suffer huge losses, but the reality was not so bad. No one could have predicted such consequences. However, since M.A.C. is an international brand, delivery around the world has always been working, but now it will become the brand’s main focus during the pandemic period. Considering all the possible troubles, such as closing stores and the loss of customers in physical stores, M.A.C. also received many opportunities in digital development. Marketing campaigns promoting their products fill the internet, and website developers get attractive development opportunities such as implementing A.R. and 3D shopping tours with the possibility of ordering.
While independent businesses have depended on their e-commerce sites to serve as communication and sales centers since Covid-19, legacy brands such as M.A.C. have expanded their retail operations far and broad. M.A.C. unveiled a one-of-a-kind partnership with Q.V.C., introducing 14 packaged kits on-air, online, and through group buying channels such as Instagram Shop (Benoit, 2019). This latest deal completes M.A.C.’s recent expansions; earlier this year, the company announced ties with Boots and Asos in the United Kingdom. Such collaborations will allow the brand to significantly expand its customer reach and raise brand awareness. It is also important that cooperation with such large retail players can open access to new market segments.
Online sales have not only increased dramatically, but they have also changed. Sales staff were stopped in their tracks due to shop closures, which forced them to rely on remote consultations, particularly in the cosmetics industry. Thus, authentic voices and personalised counsel are added to online transactions. According to Gartner, a quarter of organizations have converted their sales personnel into remote sales jobs and want to keep this structure in place even after the epidemic. Indeed, according to Salesforce, the number of applications for this new type of salesman is increasing. According to Sabrina Herlory, Managing Director of M.A.C. Cosmetics, who was featured here, companies’ future will invariably entail the characterisation of digital.
M.A.C. Cosmetics is the newest beauty firm to assist with the worldwide coronavirus epidemic, leveraging its current Viva Glam campaign to assist those who are most susceptible (Benoit, 2019). The cult-status beauty brand has agreed to provide $10 million from the campaign, funded by sales of limited-edition Viva Glam lipsticks (Benoit, 2019). It will distribute substantial money to 250 organizations worldwide, ranging from those giving emergency food supplies to those assisting in the testing and treatment of detected cases. In light of the coronavirus, the brand has decided to focus on organisations supporting those at higher risk during the COVID-19 pandemic, including those living with H.I.V. (Benoit, 2019). Additional funding will offer emergency aid funding to M.A.C.’s current partners to provide essential services such as food delivery, pharmaceutical support, and diagnosing and treatment confirmed COVID-19 cases, particularly among the impaired. While this broadens the Viva Glam aim, it does not mean that its concentration has altered totally.
M.A.C. is taking its augmented reality online product into shops, including Brown Thomas, with its Virtual Try-On, which allows customers to submit images and “try on” over 800 items. Products may be tested under regulated conditions and in pre-booked virtual consultation with a M.A.C. cosmetic artist. Furthermore, while these digital alternatives, which still allow customers to connect with a live assistant, demonstrate a high degree of skill and commitment, it is difficult to predict how successful they will fill the void until COVID-19 limits are entirely abolished. They should at least do something to entice consumers to return to the counters.
The brand is usually focused on Generation X and Y, where Generation X is young adults and working people, and generation Y is students and teenagers who use technology every day. The company’s target audience is people of all ages, genders, and ethnicities. Moreover, for more efficient operations, the M.A.C. uses the principle of market segmentation. Hence, from the point of view of geography, the largest markets for the company are the United Kingdom, India, the Middle East, South Africa, and more coverage of the largest target audience. Interacting with beauty bloggers through social networks such as YouTube or Instagram is a successful way to spread awareness about the market. Moreover, various collaborations on new cosmetic products and their advertising through the same influencers and their social networks have a beneficial effect on its profits. Furthermore, creation of solid promotional calendar launching various campaign videos on YouTube that could be found on their website are examples of the effective marketing strategy of M.A.C.
Targeting in the digital marketing world is one of the priority areas of development for the company at the present time. In particular, along with the integration of social media and active collaboration with the influencers M.A.C. you should pay attention to the use of hashtags. In today’s media space, this tool plays a key role in creating and maintaining brand awareness. Hashtags can go a long way towards helping a brand’s social media audience grow by spreading the word to new customers. It is also important that hashtags can be used to reach a specific audience previously inaccessible to a brand. This aspect also emphasizes that M.A.C., with proper use of this tool, it can expand its influence on the market, as well as discover new segments.
Digital marketing plays a vital role in the modern world of technology development. One of the problems associated with this area is the use of cookies for targeted advertising. Cookies are a powerful tool for assessing the performance and effectiveness of a digital advertising campaign. Sometimes, the data obtained during this analysis are erroneous and lead to financial and time resources. The company solved this challenge with the help of people-oriented marketing through social networks in order to increase the return on investment. In the modern world, fewer and fewer people use the Internet directly or brand sites to get to know them. For a company in the current marketplace, it is imperative to focus on developing social media as the primary resource for attracting customers, as well as for interacting with them.
M.A.C. Cosmetics thus cooperates with the digital agency NetBooster. With the help of this company, M.A.C. can effectively attract attention to the launch of new cosmetics. Therefore, the necessary data about the target audience is collected through mass media and cookies. Moreover, the company uses the Facebook Atlas tool for digital marketing. This program helps to check the effectiveness of the channel. Thus, the possibility of using people-oriented marketing enables M.A.C. to understand the reach and effectiveness of campaigns better. In addition, a good way is to arrange various make-up webinars and seminars, which also attract the audience’s attention to the brand.
M.A.C. Cosmetics has implemented a “no-touch” policy in all of its U.K. locations and canceled all makeover reservations as part of the flavivirus blitz. An email chain was issued to employees informing them that their U.K. professional make-up is no longer permitted to test goods on customers using their own brushes and that all makeovers have been canceled. Consumers can still try in-store utilizing throwaway disposables that must be discarded promptly. As a substitute for human demonstration, make-up professionals are provided face charts on which to prescribe goods. These changes involve additional costs and efforts, which are a potential threat to the brand.
The industry has responded positively to the problem, with companies moving manufacturing to make hand sanitizers and cleaning chemicals and providing free beauty treatments to front-line workers. At the same time, industry officials have a responsibility to do all necessary to ensure the future of their companies. Before the COVID-19 problem, in-store retail accounted for up to 85 percent of cosmetics firm sales in most significant beauty markets, with considerable variation by category. COVID-19 has changed the face of various industries worldwide, such as the cosmetics industry, by introducing new challenges and opportunities for businesses.
Because of the realities of working from home, physical distance, and balaclava, applying make-up and smells has become significantly less important. Prior to COVID-19, trends are expected to accelerate, with email systems, such as sites, online commerce networks, and marketplaces, becoming more essential. Customers worldwide indicate they intend to increase their online involvement and spending. In January, M.A.C. Cosmetics, like many other beauty companies, relied on revamped standalone locations to offer one-of-a-kind experiences for its target clientele. By delivering one-of-a-kind items, activities, and events, these boutiques helped to strengthen that one-on-one relationship with clients.
Modern opportunities allow big brands to work with smaller companies or people while maintaining brand growth. Such examples can be a collaboration with influencers, webinars with famous make-up artists, and podcasts. Virtual 3D shopping will allow enjoying at least a minimum of going to the store during a pandemic during a pandemic. Mentioning the creation of a robust advertising calendar launching various campaign videos on YouTube will allow luring fans of multiple events and announcing future collections to a broad audience with minimal cost. Salespeople were halted in their track as a consequence of shop closures, forcing them to depend on remote consults. As a result, genuine voices and personalized advice are added to online purchases.
References
Bharwani, S., & Mathews, D. (2021). Post-pandemic pressures to pivot: tech transformations in luxury hotels. Worldwide Hospitality and Tourism Themes.
Benoit, A. (2019). Viva M.A.C.: AIDS, Fashion, and the Philanthropic Practices of M.A.C. Cosmetics. University of Toronto Press.
Borromeo, E., Delos Santos, A. S., & Tomas, S. M. C. (2021). A.R. virtual try-on application of M.A.C. Cosmetics and purchase intention mediated by A.R. experience among Gen Y beauty consumers.
Edited. (2020). U.S. and U.K. beauty sell-outs pre VS during Lockdown. [Graph]. Edited.Com. Web.
Gardner, K. (2021). Beauty During a Pandemic: The Impact of COVID-19 on the Cosmetic Industry (Doctoral dissertation, University Honors College Middle Tennessee State University).
Gerstell, E., Marchessou, S., Schmidt, J., & Spagnuolo, E. (2020). How COVID-19 is changing the world of beauty.
Kang, J., Diao, Z., & Zanini, M. T. (2020). Business-to-business marketing responses to COVID-19 crisis: a business process perspective. Marketing Intelligence & Planning.
Manolova, T. S., Brush, C. G., Edelman, L. F., & Elam, A. (2020). Pivoting to stay the course: How women entrepreneurs take advantage of opportunities created by the COVID-19 pandemic. International Small Business Journal, 38(6), 481-491.
Pikoos, T. D., Buzwell, S., Sharp, G., & Rossell, S. L. (2020). The COVID‐19 pandemic: Psychological and behavioural responses to the shutdown of the beauty industry. International Journal of Eating Disorders, 53(12), 1993-2002.
Venkatesh, B. P. (2020). Impact of Covid-19 on consumer behaviour: Fashion and beauty industry.
Appendix
Customer Profile
RACE Model
Research: This step helps raise awareness about the brand, its products, and services on other social media websites. It is necessary to analyze the audience and what it uses more often for greater efficiency.
Act: Further, the company must ensure interaction and engagement with future buyers. This also includes activities on developing advertising companies and collaborations with famous personalities and influencers of the beauty sphere. Moreover, it is essential to target the target audience and segmentation. Additionally, it is necessary to exchange content through social networks or customer reviews.
Convert: This step includes conversion to sales, turning the audience into paying customers. To do this, you need to create a user-friendly sales website interface and create effective payment methods through online e-commerce transactions or offline channels.
Engage: Ensuring long-term relationships with customers in order to increase loyalty.