Next generation thinking for the ‘new normal’

According to the British Beauty Council in its 2019 Value of Beauty Report, £10.4 billion was spent on personal care and maintenance, while £8.7 billion was dedicated to personal enhancement products and a further £8 billion in beauty services. 1 On a global scale, the beauty industry generates $500 billion in sales per year 2 and accounts for millions of jobs, both directly and indirectly. So, when COVID19 (coronavirus) was declared a global pandemic by the World Health Organisation (‘WHO’) in March, the impact to the economy was huge.

Prior to this unprecedented event, between personalised experiences and try-before-you buy products, in-store shopping accounted for up to 85% of beauty product purchases. But with a worldwide lockdown in place, approximately 30% of the market closed down. 3 Brands and their retailers reduced ranges to ensure they could supply via more complex online retail channels and consumers ceased buying as they were now not going out. Fashion and beauty were simply going to have to take a back seat for a while, as consumers were more worried about their health and wellbeing than how they looked.

Collateral damage was felt across the board – premium beauty outlets, manufacturers and formulators were furloughing staff in new product development, while simultaneously transitioning manufacturing lines to produce handwash, soaps and sanitisers. As demand for skin care products continued to soar, the personal care sector was under pressure to not only meet those volumes but ensure the efficacy and quality of formulations were also unaffected.