Table of Content
- Introduction
- Key Challenges of the Cosmetic Industry in UAE
- Need for Streamlined Order and Inventory
- Extreme Weather Conditions
- Shelf-Life Challenge
- Frequent Returns
- Need of Omnichannel
- Overcome the Challenges of the Cosmetic Industry in UAE
- Batching and Order Management
- Warehouse and Logistics
- Stock Rotation and Inventory Control
- Returns Management
- Omnichannel Model of Selling
- Glam up Your E-commerce Selling
Marhaban! The cosmetic industry in the UAE caters to a diverse audience with its vibrant range of products. Even though the products sound colorful, like sweet pink blush or a pleasant oud fragrance, the management of these products is a different story. Let’s explore why.
The cosmetic industry is one of the fastest-growing industries, driven by international and local brands. People in the region like to spend on premium products, and this high consumer spending creates significant demand in the market. The ever-evolving consumer preferences, such as the inclination towards organic cosmetics, introduce new industry challenges that must be addressed.
There are creams suitable for particular skin types, products for specific skin tones, and innumerable shades of pink and red for make-up products. Then, there is the aisle for different fragrances in these products. Considering these endless choices, the number of SKUs creates a significant challenge, burdening operational leakages.
You don’t need to worry about it; what we cannot do is what tech can do! Let’s explore these challenges in more detail and discover their solutions!
5 Key Challenges of the Cosmetic Industry in UAE
Whether offline or online, the cosmetic industry is vulnerable to many concerns. Hence, let’s dive into the challenges specific to the UAE cosmetic e-commerce industry.
- Logistics and Unavoidable Circumstances
- The Puzzle of Shelf-Life
- The Loop of Returns
- Omnichannel Calling
- Crack the Operational Code
#1 Logistics and Unavoidable Circumstances
We are all aware of the weather conditions in the UAE. When cosmetic products are exposed to heat, their chemical bonds might break off, causing them to be wasted or unsellable, sometimes when transported from one place to another.
The heat of the transport increases the chances of the product getting damaged. This directly affects the number of returns and creates a bad customer experience.
#2 The Puzzle of Shelf-Life
In the cosmetic industry, especially in the UAE, the shift is growing towards organic products. Although the preference is increasing, a constraint comes with them: the limited shelf life. The organic approach supports the non-use of preservatives.
The heat conditions make the products prone to damage. Hence, expiry management becomes a task! The product must reach the market at the right time to be consumable.
#3 The Loop of Returns
Returns are not an unusual thing when it comes to cosmetics. Sometimes, people don’t like the shade of the color, or it doesn’t go with their skin tone. Sometimes, they simply don’t like the product. But the returns are frequent and unavoidable.
However, the process can be streamlined. The easier the return process becomes for the customer, the more they prefer to exchange the product rather than return it. Hence, a smooth process that saves time and money is crucial to the landscape.
#4 Omnichannel Calling
Tourism influences a large chunk of buying behavior in the middle. When people shop from tourism, they shop offline. However, brands with a good presence in the sector also have an online presence. Hence, connecting the stores with marketplaces and websites is a new, emerging requirement.
For example, someone bought an attar from a store on their trip to Dubai. Now, they want to purchase again and order online from a marketplace. With the omnichannel model, order data and inventory visibility can all become real-time.
#5 Crack the Operational Code
The order management system is a primary need in the e-commerce scenario now. The cosmetic industry is one of the most dynamic, so you need a solution that caters to your geographical needs and business requirements. The number of SKUs is always confusing and keeps increasing. For example, different SKUs are used for eyeliner shades and mascara in the eye category. For the lipsticks, the same type of shades are available in three categories: matte, creme, and liquid.
Hence, you need a complete order management system that compactly suits your audience of cosmetic enthusiasts and overcomes territorial challenges. It has to be open-ended so that you can customize the way you manage your orders.
Overcome the Challenges of the Cosmetic Industry in UAE
#1 Batching and Order Management
In the cosmetic industry, order management must be highly customizable. For example, if your brand offers seasonal schemes like BOGO (buy one, get one) promotion, your system’s limitations might result in separate orders for each item, confusing customers. The system should be capable of managing all the multiple SKUs synced with your orders and inventory across all platforms.
It should have a window to sort and manage multiple SKUs with techniques like batching. To address these issues, seek a system that adapts to your brand’s dynamic needs, ensuring seamless order and inventory management.
#2 Warehouse and Logistics
The longer the product is exposed to transportation, the more it will likely be affected, whether by the breakage of chemical bonds caused by heat or the fragility of luxury premium products. Hence, you can manage the logistics with the right solutions so your product travels the least.
This can be done by adapting the system that functions on the proximity list. The order will automatically be processed from the nearest storage possible, and you can set the priority list for your logistics partners.
#3 Stock Rotation and Inventory Control
Central visibility is important to address issues like limited shelf life or controlling the expiry of organic products. Once everything is visible on one platform, you can set tolerances to manage the shelf life or expiry of the products.
With the smart solution for your inventory, you can have everything under control! Applying techniques like FIFO (first in, first out), FEFO (first expiry, first out), or LIFO (last in, first out) becomes simpler.
#4 Returns Management
Returns are unavoidable in this industry, but the field requires seamless management. Additionally, if handheld devices check the accuracy of the products delivered, no wonder the returns can be reduced as well.
Automating processes from quality checks to precise tracking and payment flow ensures smoother management of returned products. You don’t need to rely on manual functioning anymore. It would integrate top-tier logistics and robust tracking systems to enhance efficiency.
#5 Omnichannel Model of Selling
Finally, a good omnichannel management system can manage offline buying and the need for an online presence to cater to tourism sales. Imagine your stores, all the selling channels, and website can be managed from one platform.
This will allow you to integrate sales and your inventory. The reports and data will help you expand more, whether the product was sold from a store in Abu Dhabi or someone ordered it from your neighboring country.
Glam Up Your E-commerce Selling!
The dynamics of the cosmetic industry require innovative solutions to cater to its demands. Customer satisfaction is the central driving force of this niche. Hence, everything has to be streamlined and perfect!
Order and inventory management, ensuring optimal warehouse and logistics practices, and adopting an omnichannel model are key to overcoming these hurdles. Just like its products, the industry is filled with vibrant opportunities. So, are you ready to make your mark? Dive in and glam up!
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