It’s clear that consumers have noticeably pulled back on their discretionary spending this year, yet the beauty category has continued to grow despite the poor economic outlook. For beauty brands looking to take advantage of big shopping days – specifically, Prime Day, Black Friday, and other holiday shopping, now is the time to prepare.
So let’s take a look at why the Prime Day opportunity for beauty brands is particularly exciting, as well as ways in which beauty marketers can make the most of it.
While a date hasn’t been announced for Amazon Prime Day, industry insiders predict a mid-July date (specifically July 11-12). Regardless, it’s never too early (or late) to start preparing.
What Is Prime Day?
Prime Day is an annual two-day sales event hosted by Amazon.com. The event is exclusive to Amazon Prime members, who receive access to exclusive deals and discounts on a wide variety of products, including electronics, home goods, apparel, and more.
The first Prime Day took place in July 2015, and since then, it’s become a major anticipated shopping event. Today, the 200 million Amazon Prime members look forward to the event as a way to save money on the products they want and need.
Digital Commerce 360 estimates Amazon’s sales on its July Prime Day hit $12.09 billion globally in 2022. Like last year, Amazon is also expected to host a second big sales event in October. (While technically referred to as the Prime Early Access Sale, intended to give shoppers a jump on the holiday season, it’s basically a second Prime Day.)
When is Prime Day 2023?
While a date hasn’t been announced for Amazon Prime Day 2023, industry insiders predict a mid-July date (specifically July 11-12). Regardless, it’s never too early (or late) to start preparing.
Why Is Prime Day Important for Beauty Brands?
Globally, the beauty market generated an astounding $430 billion in revenue in 2022, a figure that is expected to hit $580 billion by 2027. In the U.S. alone, cosmetic and beauty retail sales are expected to grow 7.6 percent this year to $86.4 billion. This data is only proof that consumers are and will continue to invest in beauty products.
E-commerce spending on beauty products nearly quadrupled between 2015 and 2022, but still only about $1 of every $5 in this category is currently being spent online. That’s quite low compared to other categories like apparel and toys, but that’s expected to change. E-commerce represents the fastest-growing channel for beauty products, expected to climb 12 percent per year between 2022 and 2027.
Amazon, and specifically Prime Day, are notable contributing factors in this trend. Even before Prime Day dates were announced, publications like Allure were rolling out their lists of “Amazon Prime Day Beauty Deals We’re Marking Our Calendars for.”
This buzz makes sense. During last year’s Prime Day, popular categories like electronics saw a decline in sales. Meanwhile, growth in the beauty and health category hit 26 percent, second only to home and garden.
Beauty brands and retailers have a big opportunity to capitalize on consumers’ desire for self-care this Prime Day. So how do you take advantage?
How Can Beauty Brands Take Advantage of Prime Day?
Amazon Prime Day is now one of the biggest shopping events of the year, particularly for health and beauty, and brands need to start planning early in order to make the most of it. Marketers should consider including the following steps on their preparation checklists:
1. Choose your deals carefully
A little research will go a long way in terms of identifying the categories that are popping to the top of consumers’ wish lists. Higher-end purchases in the beauty category are the ones that people are most likely to specifically hold out on until Prime Day, so consider how you can attract shoppers with aspirational items while still bundling in other products to boost overall sales.
2. Develop your marketing strategy and promotional materials
Don’t expect people to just stumble over your deals on Amazon come Prime Day. Brands need to plan to actively promote their forthcoming deals to ensure shoppers are hovering over their “add to cart” buttons when the big day rolls around.
3. Enlist influencer voices
Influencer voices within the beauty space carry tremendous sway. From discussing their favorite products to persuading consumers NOT to purchase others, buyers trust beauty influencers. Consider aligning with a targeted roster of beauty influencers who would be willing to authentically discuss their excitement over your forthcoming Prime Day deals.
4. Ensure your inventory is ready to go
Don’t leave your customers disappointed. Plan for the sales boom you’re hoping for and ensure your promoted products are stocked and ready to ship.
These strategies, of course, are applicable beyond Prime Day. With even bigger shopping days around the corner – Black Friday and other holiday shopping – planning ahead will go a long way. At Anagram, we’re always tracking the trajectory of important shopper marketing opportunities to ensure our clients are prepared to take advantage of the biggest opportunities of the year. Is your brand looking to make the most of mega shopping events like Amazon Prime Day? We can help. Let’s talk!