Beauty and Skincare in 2020

Jun 4, 2020

Lots of businesses and brands have been greatly affected by the Coronavirus pandemic in the first half of the year. Although the pandemic has highlighted brands pitfalls and areas of improvement, it has also unearthed their strengths. The skincare industry is a good example of where most brands have seen strong and increasing demand. Since the pandemic began everyone’s priorities shifted, we moved away from group activities like sporting matches and began to focus on ourselves. For the Beauty and Skincare industries this was a shift but on the whole a positive change. New focus on health and well being has raised awareness to brand values and additionally helped brands more easily get cut through when promoting their products.

At the beginning of the pandemic everyone was worried that they would see massive market shifts, and no one could predict what would happen next. Although interest in luxury goods decreased a new focus surfaced, attention to health and well being. Articles flooded news outlets and feeds about self-care and how to look after yourself and de-stress during this uneasy time. A main focus of self care has always been beauty and skincare. 

How did Coronavirus affect the beauty and skincare industries? 

Coronavirus harshly impacted all brick and mortar businesses. However, those businesses who embraced the move to digital ultimately saw encouraging results with e-commerce sales skyrocketing. Statista reports that Australian revenue in the Beauty and Personal Care market amounts to AUD $7,417 million in 2020. The markets largest segment is Personal Care with a market volume of AU$3,103 million. They also predicted that in the Beauty & Personal Care market, 20% of total revenue will be generated through online sales by 2020.

Promoting beauty and wellness has also been a strong marketing point during the past few months. CEO of Endota Spa Melanie Gleeson has been marketing wellness from home as a solution to health and wellness needs during this quarantine period. By selling wellness packs on their website their online business has grown “exponentially”.

“People are putting a high priority on their own wellbeing.”

– Melanie Gleeson CEO Endota Spa

Gleeson believes that this pandemic will help  “move wellness from being a trend to being something that is non-negotiable”.

Other personal care companies also fared well this quarter:

These companies all factored in their abilities to stay on top of consumer needs as one of the reasons for their success. Understanding what their customers want and need from them and adapting to provide it is incremental in a successful business strategy.

Google has offered us with some great statistics for those in the E-commerce industry

  • With 81% of Aussies shopping online, having a clear website that’s easy to navigate will gain you more customers.
  • 30% of Australians are spending more time shopping online since the COVID-19 outbreak. Therefore, it’s more important than ever to have good online advertising to drive leads to your site.

32% of Aussies will increase their online shopping in the future. It is important to keep your customers interested and coming back to you with good remarketing campaigns.

Source: Google Agency Insights Forum #3 – COVID-19 AUNZ

What does this mean for the Beauty and Skincare Industries post COVID-19?

The pandemic has forced the whole world to embrace a new normal. One where digital is the answer. The convenience of the internet has become a saviour to us all, protecting us from the dangers of the outside world and allowing us to continue our lives even though we are confined to our houses. Since the boom of e-commerce it is safe to say things will never return to the way they used to be. Google predicts that:

For beauty and skincare companies this means business as usual, well the new ‘usual’. Continue to promote your products on your online channels and continue selling online. Although stores are beginning to open it is far simpler to purchase online and now that e-commerce has become relatively normal it will never become obsolete.

Next Level’s Advice:

  • Continue to embrace the new changes brought about by the pandemic. New interest in personal care is extremely profitable for your brand.
  • Continue promoting your products online and offer up lots of educational resources like blogs to explain the benefits of your items. To ensure your customer base is constantly informed.


Statista: Personal Care Australia -May 2020

Cosmetics Design Asia: CEO of Endota hopeful that COVID-19 pandemic will make prioritising wellness non-negotiable -May 2020

Google Insights and Perspectives: Personal Care Industry Trends -May 2020

Google Agency Insights Forum 3: Supporting AUNZ Agencies Though COVID-19 -May 2020

Cosmetics Design Asia: Highs and Lows Beauty Giants Report Mixed Economic Impact Amid COVID-19 -May 2020