27 Nov 2020
Posted in Consumer
Premium beauty to see Black Friday boost, but brands must ensure virtual safety as online fraud increases
With lockdown measures in flux globally the Black Friday event will take place almost entirely online this year. Consumer risk-aversion is further driving this shift, as *177% of global consumers are concerned about visiting stores and shopping outlets, with those who are not restricted by lockdown measures still likely to avoid venturing outside as far as possible, says GlobalData, a leading data and analytics company
Lia Neophytou, Consumer Analyst at GlobalData, comments: “High value beauty categories, such as fragrances and make-up, will likely benefit most from large discounts, as these were the first categories to be dismissed as consumers tightened budgets once personal finances began to feel the impact of the COVID-19 pandemic.”
Nearly a third (*230%) of global consumers claim they will purchase beauty and grooming items at the lower end of the price range, or stop purchasing these items altogether, because of the pandemic. These consumers could thus reward themselves with higher value beauty items at a discount.
Virtual promotions and sales on a mass scale, however, increase the chances of fraudulent activity, highlighting the crucial role that brands play in ensuring the safety and security of consumers’ transactions, as well as fairness in the online marketplace.
Neophytou adds: “Lockdown measures and tempting Black Friday deals combined may compel infrequent e-commerce users who are potentially less tech-savvy to make beauty purchases via this channel. Just *316% of consumers aged 55+ are buying more personal care products online compared with the global average of (*332%), and they are arguably more vulnerable to fraudulent activity during the Black Friday period.”
Brands must ensure that they are prepared for the large traffic sent to online stores, particularly within countries currently imposing strict lockdown measures, while ensuring precautions against potential counterfeit products are in place. Such precautions will likely appeal to over half (4*57%) of global consumers who are always/often influenced by how familiar, trustworthy, or risk-free a product or service feels when making a purchase.
Consumer risk-aversion is evidently strong and persistent, which could weaken the ‘see now, buy now’ mentality typically adopted when shopping online. This supports that brands and retailers should prolong Black Friday sales across a longer period to align with this, enabling time for consumers to deliberate and make purchases they deem safe and trustworthy.
Neophytou concludes: “Prolonging the Black Friday period will enable brands and retailers to shift unsold stock – particularly in the most impacted high-value beauty categories – that firms have struggled to shift in recent months. It will further cater to consumers who continue to retreat within the home irrespective of lockdown measures. If enacted, this would strengthen the case for brands to reassure consumers of the safety, security, and fairness of its online promotional activities.”
* Data is based on GlobalData’s Coronavirus (COVID-19) Recovery Tracker
Consumer Survey – Week 10 (November 10) – Global
*1 Combined responses: “Extremely concerned”, “Quite concerned” and “Slightly concerned”
*2 Combined responses: “I am buying products at the lower end of the price range” and “I have stopped buying this because it is beyond my shopping budget”
*3 Combined responses “I am buying significantly more than before of this product at this location” and “I am buying slightly more than before of this product at this location” and “I am stockpiling this product i.e. buying this in bulk or multiple times at this location” and I have never bought this product at this location, but have started doing so now”
*4 Combined responses: “Always influences my product choice” and “Often influences my product choice”