The COVID-19 pandemic has adversely affected the beauty and cosmetic industry which tends to play a multi-billion dollar game in the market, rendering many workers unemployed.
This year has been like no other for the beauty Industry with massive decline in the economy. The economic and societal impacts of COVID-19 are going massive even in the end of the year, with beauty experiencing rapid shifts in buying patterns, channel activity, consumer needs and decline in demand.
With the threat of a high communicable virus like the coronavirus, business owners wanted to err on the side of caution while re-opening their beauty salons to the public. The COVID-19 pandemic has changed the course of the world, irrespective of what area of the world you are at or what industry you work in, it left nobody untouched of its effects. It struck the Beauty and makeup industry too. COVID-19 has severely hampered the import and export aspect of this industry. Moreover, with nowhere to go all dressed and glammed up, people are going all basic, which means a drastic decline in the demand of cosmetics. All this came as a big shocker to the industry given the minor impact and quick recovery from the 2008 recession. The beauty industry has always been a strong segment for investment and great ROI due to the recurring purchase patterns, high margins, and great general resistance to macroeconomic events such as recessions.
The beauty industry fell up to 80 percent in March sales compared with 2019 and kept degrading simultaneously. This implies that the industry might be relatively resilient this time. Even before these businesses could start reopening stores, they were faced with the challenge of maintaining brand salience. From a perception point of view, a haircut, waxing, threading, eyelash extensions, nail extensions, microblading, henna tint, lash lift or other beauty treatments are seen as non-essential, especially when compared to other services. Without a doubt, eye makeup and sanitizer is the new lipstick!
Even after complete lift-off of the lockdown restrictions, people are not stepping out of their homes completely. This has accelerated the dependence on e-commerce sites for their purchase needs and has thereby pushed their growth. Brands in India and even worldwide are already ahead in the game with their live-streaming of product launches and campaigns for the customers in remote areas or stuck at home.
The Covid-19 outbreak has driven significant loss in value for the beauty market in 2020 as the lockdown period has not only limited retail sales, but has also affected usage habits and caused a shift in purchase behaviours. But thanks to highlighting of sanitation and cleanliness in the wake of COVID-19 for tips and tricks to cleanse cosmetic products and also the stores and beauty studios with the market unlocking.