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Digital Shopping Moves to Epicenter Brand Distribution Strategies

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The beauty retailing landscape is constantly in flux, Kline recently posted in a blog. The consumer’s path to purchase is not always clear, as offline and online shopping are more intertwined than ever before.

Alternate shopping channels and sub-channels, once touted by many in the beauty industry as being “negligible” or “insignificant,” have emerged as “essential” for the growth of brands. Digital shopping has moved from the peripheral to the epicenter of a brand’s distribution strategy. The formula for a winning marketing approach can be created based on the awareness of the beauty retailing mix and what is appropriate for a particular product or category.

Follow your customers wherever they are, Kline states. Technology is a driving force that is changing the face of beauty retailing, and retailers are no longer bound by a particular channel. Instead, most view themselves omni-channel in order to reach out to the largest possible audience made up of smaller sub-demographics.

Specialty stores are an important critical space to purchase beauty products for many consumers. Many of these venues are havens for new product launches. This channel now demonstrates the second highest growth at 5.4% in 2013, boosted by growth coming from apparel specialty stores, which have posted an 18% CAGR since 2007.

TV shopping has established itself as a credible outlet, with infomercials growing at a CAGR of +11% since 2007 and home shopping networks growing by over 18%, increasing its market share from 5% to almost 9% since 2007. Mobile and online shopping have become even more important. The growth of purchasing via smartphones, personal computers and tablets helps grow the e-commerce area, and Internet sales have posted a 26% CAGR since 2007.

Grasping these fast-paced changes in beauty retailing trends and understanding each channel defines the winners.

Kline offers three detailed reports that explore these ideas further: Beauty Retailing USA: Chanel Analysis and Opportunities, Beauty Retailing USA: Alternate Channel Monitor and Shop Scout: A Mobile View of U.S. Beauty Shopper Behavior.

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