O2O In The Beauty Industry

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O2O in Beauty Industry (837 words):
Over the past decades, the global beauty market has witnessed a steady growth and is anticipated to register a CAGR of 3.7% during the forecast period. Rising consciousness about external appearance among individuals coupled with the rise in disposable income is leading to the increased demand of beauty products . This exactly drives the development and expansion of beauty industry worldwide, giving the industry endless and malleable opportunities to innovate. Beauty industry is progressed and subdivided into several categories, such as cosmetic product categories , and personal service. Another movement in beauty industry nowadays, according to a general research conducted by A.T.Kearney, 47% of surveyed
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That’s because, as time passed, consumers are more likely to find that there are really some unignorable pain-points in online purchase experience – it’s hard to access “experiential products” such as fragrance and color cosmetics, also unstable delivery which is vulnerable to weather-related or artificial elements is another concern. Of course, offline channels have huge problems concerning accessibility, variety and convenience (this was the reason why online channels have grown drastically since its appearance). In an effort to improve consumption experience without unnecessary worry during consumption, marketers try hard to devise a new business concept – O2O (online-to-offline). In O2O, connection of channels eliminates the boundaries between online and offline and provides customers with seamless consumption experience. For further explanation about O2O, here are examples of online, offline and O2O consumption process. For online, when consumers come up with need recognition about “wanting to buy cosmetics products”, they will search online, make an evaluation of brand / features / price / reviews from others between…show more content…
China is the largest and most activated O2O market in Beauty industry around the world. Because of growing concern regarding fake items, majority of consumers prefer to experience products in person before purchase. With prosperity of online payment service (China National Bureau of Statistics shows online market was seen a 33.3% increase, reached 562 billion dollars in 2015), such as “Weixinzhifu” and “Zhifubao”, Chinese beauty consumers have more accessibility to O2O than any other countries. O2O beauty is also a hot topic in Korea, one of the innovative leaders in the world. Amorepacific, the largest cosmetics companies in Korea, has been eager to introducing O2O in its business. In its Aritaum Omni-store, smart screen detects movement, catches skin tone of customers and shows relevant advertisement via online or suggests fit cosmetics. Customers can also read some reviews while shopping and access QR code to purchase on mobile phone. If there is no extra stock at store, they can order one on screen or mobile application and choose to pick it up at another nearest store or make it delivered wherever they

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