COVID-19 is altering consumer behaviors, and many of these shifts could be permanent. The pandemic has had a profound and enduring impact on consumers. Recent Accenture research shows that the majority (95%) of consumers are making significant and lasting changes to how they live, work and shop. COVID-19 has also triggered an economic recession that is amplifying some of the consumer trends already happening prior to the pandemic.

Audrey Depraeter-Montacel

Some people still hold hope that life — and consumer behavior — will soon go back to the way it was. However, while various current trends will diminish a bit, there won’t be a full return to what used to be prior to the pandemic. Consumers’ sentiments, spending and behavior will remain changed. To survive and compete in the future, many beauty brands will have to adapt to a new world.

New opportunities emerge to generate value

Online ordering and home delivery may have been growing in popularity before the coronavirus pandemic began, but they weren’t yet the norm. They soon could be, because once people realize the benefits of digital commerce, they are unlikely to abandon it altogether.

These developments present a double-edged sword for beauty brands: There is a clear opportunity here to grow the business through digital commerce, but this opportunity brings with it a higher operating cost structure, which can impact margin.

Beauty companies will need to account for this reality. It is a dramatic change in the beauty occasions, as many people continue to work from home and a plethora of social and cultural events have been cancelled. It means working with retailers, wholesalers, hairdressers and beauty salons, as well as delivery partners to plug any gaps in direct-to-consumer channels. Longer term, careful analysis will be needed to anticipate how many of these new consumer behaviors will stick and then adapting the portfolio and financial models accordingly.

Brands are finding new ways to engage the consumer

While brick-and-mortar will always be a part of the buying process, the pandemic has changed how consumers think about shopping.

With continued focus on limiting in-person interaction, consumers migrated to online channels to find new ways to buy products and services from the comfort of their home.

As well as dramatically increasing their buying online, consumers are switching to omnichannel services like digital chat, and virtual consultations. Successful beauty companies will be those who get creative, experimenting with new ways of engaging online and developing marketing strategies that promote products and activities that will continue to appeal, even after the pandemic passes.

Charlotte Tilbury is one example of a beauty brand that successfully pivoted to a virtual solution with the launch of a live chat service, 1-2-1 virtual consultations, and a makeup magic online try-on service where consumers can virtually try on makeup icons and play around with different shades.

And recognizing that “the power of the human touch is more precious than ever” Dermalogica has introduced an online course to help skin care professionals support their clients emotionally. The move towards holistic service is a smart one. Deeper, more resonant customer support is critical at a time when mental health has deteriorated for many over the past year.

Consumers are going pro

Global lockdowns caused many consumers to become hairdressers and beauticians, as access to many professional services was restricted. Even when restrictions ease, there’s significant opportunity to maintain momentum by creating new premium experiences for the home, as consumers are seeking alternatives to expensive services.

Just look at hair brand Bleach London. It is a good example of a brand that has successfully pivoted to a virtual solution, with the launch of its Bleach Hair Party platform. The Hair Party essentially acts as a digital salon; live conversations with guest speakers enable consumers to buy and apply hair color correctly.

This focus on informative and education content was part of Bleach London’s strategy prior to the pandemic, too, with how-to content on YouTube as well as comprehensive step-by-step guides on its website.

As a high-engagement category, beauty is suited to digital advances

Innovations in artificial intelligence, augmented reality and smart tools are set to revolutionize our relationship with beauty and appearance.

With consumers likely to adopt a cautious mindset around touch, augmented reality (AR) technology that allows us to virtually try on makeup and at-home devices that provide personalized cosmetics is just one of the ways in which the worlds of technology and beauty have collided at an accelerating pace.

In the wake of the pandemic, lockdown and safety concerns over human contact have meant that this kind of disruptive tech has become the norm.

By using integrated technologies with embedded security, artificial intelligence and machine learning principles, consumer buying patterns can be detected, demand can be quickly identified and then plans can be adjusted. This is central to continuous innovation and the ability to drive deeper consumer engagement.

We are already seeing examples of this play out. Look at how Proctor & Gamble Co. developed Opté, a handheld inkjet (which acts like a printer for the skin), which flawlessly color corrects blemishes and dark spots. Or Korean company Amorepacific’s customizable 3D sheet-mask printer. Or L’Oréal’s Perso, which gathers environmental data and skin diagnostics to blend on-the-spot cosmetics.

Brands continue to invest in tech to reach more consumers wherever they are. A good example is Beautycounter. The beauty brand created a livestream, shoppable content studio that was integrated into its new store in Los Angeles. It is a clever way to bridge the gap between traditional physical retail and virtual livestream shopping to build community and a closer, one-to-one relationship with consumers.

Looking to the future

In many ways, this pandemic has created an even greater opportunity for beauty brands to attract and engage with consumers in innovative new ways. In the space of a few months, the landscape has changed remarkably, and we will likely face continued changes and adaptations in the years to come.

For the beauty industry, this is the time to focus on the possibilities the future holds in a newly carved out digital consumer world.

Audrey Depraeter-Montacel is beauty lead for Accenture’s Consumer Goods & Services industry group. She can be contacted at [email protected].