Table of Contents
1. Introduction
2. Rising Beauty and Cosmetics Industry Trends in Philippines
– Emergence of Social Commerce
– Personalization and Rise of Organic Brands
– All-in-one Multichannel Shopping
– Convenient Payments, Your Ways
3. E-commerce Scope with Beauty and Cosmetics Industry Trends in Philippines
– Meeting Multi-channel Demands
– Managing Expiry and Shelf-Life Challenges
– Strengthen Customer Experience with Omnichannel Retail
– Streamline Payments with Advanced Reconciliation Tools
4. Stay Ahead of the Trends and Leverage With the Right Tools
Isn’t there something captivating about that glass-like, dewy skin? In the Philippines, beauty is more than just a trend—a thriving culture, and the e-commerce beauty industry is at the heart of it all. One unofficial fact about the Philippines is that the P stands for pageants. The country has the most beauty pageants, concluding Filipinos’ self-care preference.
The influence of K-beauty and J-beauty, along with the surge in mobile commerce among younger generations, has nurtured the vibrant skincare and cosmetics culture. This supports the fact that the skincare industry is meant to discover new heights of growth in the coming years.
However, one thing about the beauty and cosmetics industry is that trends are always a significant driving force. For instance, if you want to launch something new, you must decide if it will be an investment in traditional lipsticks or trendy tints. This decision will impact your business significantly.
Hence, let’s discover some trends that blend with the ever-changing e-commerce landscape. And how you can strategize your business game to capitalize and flourish in the industry.
Rising Beauty and Cosmetic Industry Trends in Philippines
1. Emergence of Social Commerce
Social commerce is emerging as a dominant trend in the Philippine beauty and cosmetics industry, with platforms like TikTok Shop leading the way and followed by Instagram and Facebook. This shift is fueled by the convenience of discovering and purchasing trendy products directly within the same platform, eliminating the need to search across multiple marketplaces.
Driven by the younger generation, social commerce is on a rapid rise. Domestic cosmetics brands like Courette Cosmetics and Happy Skin and international picks like Cera Ve, Kylie, and ELF Cosmetics are always in the top trends. Factors behind this surge include increased internet penetration and affordability, making it easier for consumers to access and shop for beauty products online.
2. Personalization and Rise of Organic Brands
Like tech gadgets, the beauty industry evolves with new trends that are quickly becoming the norm. Brands often follow these trends, adapting their products to fit. For example, if gel-based formulas gain popularity, many brands offer variations on the same lines.
One key trend is product personalization based on individual skin or hair types, with brands focusing on a tailored approach. This connects the brand more with its customers and boosts the loyalty programs and community building. Additionally, a growing demand for organic, vegan, cruelty-free, and natural products reflects consumers’ increasing concern for health and the environment.
3. All-in-one Multichannel Shopping
The industry is not only about using beauty or cosmetics products. It has its own experience! The omnichannel shopping experience is crucial. When you enter an offline store like Sephora or a brand store, you want to feel important, gather what is best for you, learn how it will enhance your beauty, go with your aura, and offer you economic benefits.
Despite the multitude of online selling touchpoints. Due to its experience, offline shopping is still prevalent in the Philippines, from trials to coupons and walking through the aisle filled with beauty products. It’s a never-fading thing in the industry.
[Read – Top Marketplaces in the Philippines for Businesses]
4. Convenient Payments, Your Ways
The brand positioning connects a lot to the consumer in the beauty industry. The quest to buy luxury cosmetics like Charlotte Tilbury, Bobbi Brown, Chanel Beauty, and Estée Lauder is real. The selling touchpoints in the Philippines provide flexible payment options. For instance, COD (Cash on delivery) is still a popular payment method despite the digitalization of online shopping.
In addition, new payment models, like BNPL (buy now, pay later), are widespread in the country. Sellers let people buy the brands they want, and they can pay weekly or monthly. This allows the target audience to have a bigger umbrella, and many consumers feel included comparatively.
[Read – How Ellana Cosmetics achieved 99.99% order fulfillment rates]
E-commerce Scope with Beauty and Cosmetic Industry Trends in Philippines
1. Meeting Multi-Channel Demands
Social commerce, driven by platforms like TikTok Shop, quickly transforms e-commerce. To stay ahead, businesses must embrace new selling channels and seize the opportunity to reach audiences directly through social media. The demand for multi-channel selling grows as more consumers engage with products on these platforms. Adapting to this shift and managing the unique inventory demands of each channel is essential for success.
2. Managing Expiry and Shelf Life Challenges
Regarding organic products and their rising demands, we must recognize their challenges. Most organic beauty products constitute formulations with natural or non-chemical preservatives. This allows them to give a better quality but a drawback of limited shelf life. Hence, the journey from start to consumption must be covered within a specific time limit to avoid inventory loss.
To practice this, your expiry management like FIFO becomes a requirement. To have a solution in your warehouse that lets you rotate your inventory to avoid inventory loss is essential. Some of the choices in the market also allow you to set a tolerance so that you only process the good inventory for sale, ensuring a good customer experience.
4. Strengthen Customer Experience with Omnichannel Retail
As discussed above, the beauty and cosmetics industry heavily relies on the consumer experience, which is why stores are so significant, whether you sell on a multinational retail platform or your stores. It’s essential to unify the quality of your user experience. Issues like the unavailability of a particular product in stores or some marketplaces sometimes cause people to prefer to order online but pick up their product offline or vice versa.
An omnichannel strategy effectively meets diverse customer needs. By offering an “endless aisle,” you can fulfill orders from alternate locations if a product isn’t available at a particular store. With centralized access to inventory and order data across all touchpoints, you ensure smooth operations and a unified customer experience.
5. Streamline Payments with Advanced Reconciliation Tools
With the vast array of payment options comes the broad challenges of tracking them. The popularity of Cash on delivery might leave the possibility of discrepancies. With the multiple options comes the difficulty of tracking. For instance, if the order is placed online, the shipping charge and platform fee will be applicable, but it will not be charged for websites and stores.
The advanced reconciliation tools in the market handle it all for you from head to tip, and you can compare the expected and received payment amounts. All the information you need is bifurcated so that you can track all the discrepancies at your fingertips. You and your tool’s automated system can take the required action!
Stay Ahead of the Trends and Leverage With the Right Tools
In a country renowned for its beauty pageants, beauty trends are ever-evolving, and the e-commerce industry must be prepared to meet these changing demands. However, constantly adapting your backend operations to keep up with trends can lead to continuous investments and frequent operational changes, disrupting workflow and efficiency.
To stay ahead, it’s essential to have a robust warehouse and inventory management system that seamlessly accommodates demand shifts without compromising the supply chain’s flow. The more streamlined your operations, the smoother your business will run. So, take the next step—invest in the right solutions today and set your e-commerce business up for lasting success!
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