E-commerce is the fastest growing retail channel in the U.S. beauty market, according to a new analysis by Kline & Company, posting an annual growth rate of 24% since 2009. Despite this, "virtual channels account for only 8% of total U.S. beauty and personal care sales while physical stores account for the vast majority."
As a result, the omni-channel has become a two-way street, allowing traditional brands to harness e-commerce growth, while "pure online plays" such as Amazon, Google, Violet Grey and Birchbox are expanding into physical stores to reach offline consumers.
This blend of online and offline has manifested in new technological upgrades, such as Sephora's Color IQ, augmented reality mirrors like ModiFace and online tutorials.
Simultaneously, infomercial brands such as Guthy-Renker’s Meaningful Beauty and WEN are now also found in Sephora, while Ulta Miracle Skin Transformer and Hydroxatone are available in Kohl’s.
