Ecommerce and social media have had a huge impact on the way consumers shop the beauty category. With platforms like Amazon and TikTok Shop making it easier that ever for shoppers to discover and purchase products -- particularly niche beauty products -- the share on online sales continues to grow. Add to this the challenges of theft protection devices in brick and mortar stores and it's no surprise that online sales of beauty products went from 1/3 to 43 percent since 2020. 

Not all is lost, however. There are many things brick and mortar retailers can do to win back some of these sales, particularly an enhanced focus on the in-store experience, with careful curation of products and a focus on delivering outstanding services. 

These are some of the topics covered by NIQ VP of Beauty Anna Mayo during her presentation at ECRM's recent Everyday and Holiday Cosmetics, Skin, Fragrance & Bath Session held in Chicago. Below are three video interviews I filmed on location at the Session with Anna, and you can find here presentation slides here: NIQ Jan 2025 ECRM Beauty Presentation.pdf

Online vs In-Store Sales in the Beauty Category

The beauty category has seen an increasing shift in sales from in-store to online. Two chief reasons are Amazon and TikTok Shop, which have reshaped the way consumers discover and purchase new products, enabling them to search for very niche beauty segments like rice water shampoo or algae skin care.

So what can traditional brick and mortar retailers do to win back some of these sales? For one thing, they can address the challenge of theft control measures and provide an enhanced focus on the customer experience with great curation and specialized services. 

The Impact of Theft-Protection Devices on Beauty Product Sales

We've all seen the theft-protection devices limiting access to products at major retail chains. According to NIQ, 20 percent of beauty category sales have been lost to these devices as shoppers refuse to wait for a store associate to help them -- shifting those purchases to online or other retailers without these measures in place.

Shoppers will wait from 2 to 3 minutes max for help with these products in the beauty aisle before leaving. What's more, 43 percent of these shoppers will be less likely to return to that store in the future. Fortunately, retailers have been getting better with response times and are exploring app-based technologies to help address these challenges. 

TikTok Shop & Social Commerce in the Beauty Category

While everyone is speculating on what will happen with TikTok next week, one thing is certain -- the social media giant's TikTok Shop platform has changed the way consumers find and purchase beauty products. 

In this interview, NielsenIQ's Anna Mayo discusses TikTok Shop's meteoric rise in the beauty category, what drove it, and how other social media platforms are following suit with social commerce options of their own.