Commerce Catalysts

Prestige Beauty Brands Embrace Amazon's Growth Engine

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Marketplace partnershipPress

For years, prestige beauty brands held out on Amazon, fearing a dilution of their brand image. But the tide is turning. Driven by data and a shift in consumer behavior, luxury labels are flocking to the e-commerce giant.

Kiehl's, a brand with a loyal following, recently announced its debut on Amazon Premium Beauty. This follows similar moves by L'Oreal's other labels like Lancôme and It Cosmetics. Amazon's dominance in beauty is undeniable - it's projected to become the biggest beauty retailer in the US by 2025.

Why the Shift?

Previously, concerns about brand control and competition from unauthorized sellers kept prestige brands away from Amazon. However, the platform has matured, offering features like detailed product pages and targeted advertising. Additionally, beauty discovery is changing. Consumers are increasingly using social media, particularly TikTok, for product recommendations and then turning to Amazon for purchase.

Data Shows Growth Potential

Data from Front Row Group's Catapult platform reveals a surge in luxury beauty searches on Amazon, exceeding Google searches. This demonstrates a clear demand for high-end products on the platform. Moreover, the pandemic proved that Amazon attracts a distinct set of beauty shoppers who may not frequent Sephora or Ulta Beauty.

The Future of Prestige Beauty on Amazon

While some luxury holdouts remain, like Chanel, most prestige brands are likely to embrace Amazon eventually. The platform offers a powerful discoverability tool and a chance to tap into a new customer base. Integrating Amazon into an omnichannel strategy allows brands to meet consumers where they are and capitalize on the platform's immense growth potential.

Read the Full Article on Business of Fashion: Why Prestige Beauty Can No Longer Ignore Amazon