Health & Beauty | Digital Commerce 360 https://www.digitalcommerce360.com/industry/health-beauty/ Your source for ecommerce news, analysis and research Mon, 05 Jun 2023 19:28:27 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Health & Beauty | Digital Commerce 360 https://www.digitalcommerce360.com/industry/health-beauty/ 32 32 Earnings recap: What you missed from Kohl’s, Foot Locker and more https://www.digitalcommerce360.com/2023/05/26/earnings-recap-what-you-missed-from-kohls-foot-locker-and-more/ Fri, 26 May 2023 17:03:58 +0000 https://www.digitalcommerce360.com/?p=1045547 More than a dozen businesses in Digital Commerce 360’s Top 1000 list of ecommerce retailers in North America reported earnings this week. These are the highlights you need to know. Read more earnings coverage here. Abercrombie & Fitch Co. (No. 60) Abercrombie net sales were up 3% year over year to $836 million. The retailer […]

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More than a dozen businesses in Digital Commerce 360’s Top 1000 list of ecommerce retailers in North America reported earnings this week. These are the highlights you need to know. Read more earnings coverage here.

Abercrombie & Fitch Co. (No. 60)

Abercrombie net sales were up 3% year over year to $836 million. The retailer did not break out ecommerce sales. 

“On digital engagement, our team has leveraged social media platforms to showcase our lifestyle offering, where we are able to highlight key must-win products for us in an authentic way. Social has proven to be a great channel for our target millennial customer,” CEO Fran Horowitz told investors.

American Eagle Outfitters Inc. (No. 55)

American Eagle ecommerce revenue was down 4% year over year in the first quarter, while in store revenue was up 5%. Overall revenue grew 2%, the retailer reported.

“Customers returned to in-person shopping and demand continued to normalize from elevated builds during the pandemic,” chief operating officer Michael Rempel told investors in a call. Leaders at American Eagle are working on strategies to use analytics to increase engagement, traffic, and conversion, Rempel said.

Bath & Body Works Inc. (No. 57)

The health and beauty retailer finished expanding its BOPIS rollout across the U.S. in Q1, CEO and director Gina Boswell told investors on May 18. Bath & Body Works plans to increasingly connect its digital and in-store offerings, Boswell said, because customers who shop through both channels spend three times more than customers who only use one. As of May 18, just 15% of customers shop through both channels, she said.

Boot Barn Holdings, Inc. (No. 328)

Ecommerce sales were down 18.4% in Boot Barn’s fourth quarter. “We believe these declines are a result of competitors having a stronger in-stock position compared to last year and expect this softness will be transitory,” CEO and president Jim Conroy told investors.

“While our online business declined, that business is cycling two very strong years of 39% and 24% comp growth in fiscal 2022 and fiscal 2021, respectively. Given the extraordinary revenue increase last year, we are quite pleased with these results,” Conroy said. Retail same store sales declined just 3.3% over the same period.

BJ’s Wholesale (No. 69)

BJ’s Wholesale said that digitally enabled comparable sales were up 19% year over year for the quarter ended April 29 ,2023. Online sales made up 10% of total sales in the quarter, CEO and president Bob Eddy told investors. Members of the warehouse club who shop online spend 70% more than members who only shop in stores, Eddy said.

Canada Goose (No. 135)

The winter wear retailer grew revenue 31.4% year over year in its fiscal Q4, but growth was partially offset by lower ecommerce results, per CEO and chairman Dani Reiss. Canada Goose didn’t share specific ecommerce figures.

The retailer shared plans to “further enhance store productivity and e-commerce performance in the not-so-distant future,” without stating details.

The Children’s Place (No. 124)

Digital sales growth at The Children’s Place “significantly outperformed” in-store sales for the first quarter, CEO and president Jane Elfers said in a statement. 

Online purchases made up 46% of sales in the quarter, compared to 45% in the previous year’s Q1 and just 33% in 2019. Elfers said ecommerce is projected to be 30% of sales by 2025, representing over $1 billion. 

Web traffic was “up double digits,” and 56% of new customer acquisition came through ecommerce, the retailer said. 

“Our millennial moms’ clear preference for the ease and convenience of shopping for her kids online is here to stay,” Elfers told investors.

Dick’s Sporting Goods (No. 32)

The sports retailer didn’t share specific ecommerce figures, but president and CEO Lauren Hobart told investors that “our digital experience remains an integral part of our success,” in a Q1 earnings call. 

Dick’s acquired outdoor retailer Moosejaw in March. Moosejaw primarily operates online, averaging 3 million visitors per month.

“For just over 10 months in 2023, we expect Moosejaw will add approximately $100 million in net sales,” chief financial officer Navdeep Gupta told investors.

e.l.f. Cosmetics Inc. (No. 953)

Beauty retailer e.l.f. grew net sales by 78% in its fiscal fourth quarter, “primarily driven by strength across our retailer and e-commerce channels,” it said in a statement.

E.l.f. began as an exclusively online brand before expanding into stores. Consumption of the brand’s digital content was up 75% in fiscal 2023, CEO Tarang Amin told investors. The retailer’s beauty squad loyalty program grew to 3.7 million members in the quarter, up 25% year over year. Loyalty members were behind nearly 80% of ecommerce sales, along with higher AOV and more frequent purchases than non-members, Amin assid.

Foot Locker, Inc. (No. 52)

Foot Locker reported that comparable digital sales in Q1 were down 16.8% year over year. The footwear retailer also discontinued an ecommerce line called East Bay, and online sales were down 9.5% excluding the brand. That’s still a larger decrease than in store comparable sales, which were down 7.4%. 

Online sales made up 16.3% of sales in the quarter, down from 18% in Q1 2022. Ecommerce sales are starting to pick up, with April sales up year over year, CEO Mary Dillon said. The retailer is on track to reach its goal of 25% online sales by 2026, Dillon said.

Guess Inc. (No. 177)

Online sales at Guess grew in Q1, although more slowly than in store sales, CEO Carlos Alberini said. 

Total revenue was down 4% in the quarter to $570 million, with U.S. revenue declines offsetting growth in Asia and Europe.

Kohl’s Corp. (No. 23)

Digital sales were down 19.6% year over year in Q1, Kohl’s reported. Net sales were down just 3.3%. 

“Our customers continue to shift back towards stores, and we reduced online-only promotions as we work to simplify our value strategies,” CEO Tom Kingsbury told investors.

Online sales made up just over one-quarter of sales for the quarter at 26%.

Ralph Lauren Corp. (No. 75)

Ralph Lauren’s digital sales were up in fiscal 2023, the retailer said. ”Sales in our owned Ralph Lauren digital sites grew mid-single digits on top of 20% growth last year,” chief financial officer and chief operating officer Jane Nielsen told investors in a Q4 earnings call.

“We plan to enhance the user experience with rich digital content and even greater customer personalization in fiscal ’24,” Nielsen said. That includes using generative AI for copy editing, computer programming, and graphics in addition to inventory optimization and forecasting.

Urban Outfitters (No. 30)

Apparel retailer Urban Outfitters reported comparable sales grew by double digits both in stores and online for its Anthropologie, Free People, and FP Movement brands. The Urban Outfitters brand’s comparable sales were down, and overall comparable sales were up 5%, the retailer said. 

“The growth in Retail segment comp sales was driven by a high single-digit digital comp and a low single-digit positive store comp,” co-president and chief operating officer Frank Conforti told investors. 

Online rental and resale marketplace Nuuly revenue grew 125% year over year, ending the quarter with 167,000 subscribers. 

Williams Sonoma Inc. (No. 22)

Revenue decreased 6% year over year in Q1, but was up 3.5% over 2021. The retailer did not specify ecommerce revenue. 

Williams Sonoma plans to “optimize our digital spend and customer connections,” per CEO Laura Albner.

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EnvisionB2B Speaker Spotlight: Essity’s Denise Vivas on finding the B2B ecommerce North Star https://www.digitalcommerce360.com/2023/05/22/envisionb2b-speaker-spotlight-essitys-denise-vivas-on-finding-the-b2b-ecommerce-north-star/ Mon, 22 May 2023 17:21:30 +0000 https://www.digitalcommerce360.com/?p=1045191 As the vice president of ecommerce at Essity Professional Hygiene, a global hygiene and health products manufacturer, Denise Vivas plays a critical role in Essity’s focus on growth through digital commerce. Here she addresses how Essity is engaging a new generation of online buyers of such products as Essity’s Tork brand line of workplace cleaners, […]

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Denise Vivas Thumbnail

Denise Vivas, vice president of ecommerce, Essity Professional Hygiene

As the vice president of ecommerce at Essity Professional Hygiene, a global hygiene and health products manufacturer, Denise Vivas plays a critical role in Essity’s focus on growth through digital commerce. Here she addresses how Essity is engaging a new generation of online buyers of such products as Essity’s Tork brand line of workplace cleaners, dispensers, and related products.

Vivas is a panelist on the “Ecommerce Business Strategy: Creating a Blueprint for Digital Commerce Excellence” session June 21 at 2023’s EnvisionB2B Conference & Exhibition in Chicago.

DC 360: What is driving B2B companies like Essity Professional Hygiene to expand online?

Vivas: At Essity, our “North Star” is to deliver superb customer experiences in everything we do. We are always thinking ahead and always researching to ensure we provide the best service to our customers where they are. And where they are is online. In fact, research shows that close to 70% of our customers are millennials, and for them digital is the norm, not the exception.

Our digital transformation efforts are directed toward executing a customer-centric strategy across every inch of our business — from the way we manufacture products all the way to reaching and engaging current customers and seeking new business and profit opportunities. Digital is how we can bring Tork products and solutions to customers with speed and convenience.

Our online services seek to accomplish three important objectives at Essity:

  • Build brand equity and trust.
  • Defend our share as end customers shift from offline to online practices.
  • Drive growth by unlocking new buckets of opportunities.

DC 360: What are your biggest internal and external barriers?

Vivas: There’s no greater satisfaction than when Essity and our partners — distributors, wholesalers, service providers and such — find we are on this digitalization path together. When our visions align, we are able to amplify and accelerate growth and customer satisfaction.

But in reality, resistance to change continues to be a barrier to that forward trajectory. Legacy systems and lack of resources can all weigh down and slow down progress. We strive to be leaders and help our partners embark on the digitalization journey with us.

Think about buying a car 15 years ago versus buying a car now. The transformation of how a car operates, all its safety features, and even how you can now purchase a car online, is mind-boggling. But people still operate the vehicles and must be willing to accept this new technology and drive that car off the lot. That is what we hope to continue to do with our partners — to show them how much faster, safer and more efficient we can be when we are firing on all cylinders together.

DC 360: What are the chief gains you’re realizing?

Vivas: Our online business — both through distribution partners and direct — is growing faster and more profitably than any other channel. And what we have learned along the way is that we can not only understand and acknowledge our customers’ needs but also help address and solve them.

Back to that Essity North Star, we are committed to strengthening our distributor partnerships, which includes the work we do to support their online business. How can we do that? Our approach involves developing ecommerce, digital marketing activation, and digital selling capabilities that we extend to our distributor partners as value-add services. These services complement the great work we do offline. As we master the art of supplementing online levers with offline ones, we advance further toward our destination, which is to differentiate Essity as a leader in omnichannel partnerships.

DC 360: What is the most valuable piece of advice you have on how to launch online B2B sales or increase them?

Vivas: As basic as this sounds — and it can’t be stressed enough — understand your customers’ pain points and devote the time and resources to solving them. And do it better and faster than anyone else. This is how you build brand equity and trust, and it’s how we reach our North Star and the growth that naturally follows.

I would also add: Be bold. The cost of technology continues to go down. Going back to my car analogy, think about the cost of cars today with all that technology now included even in base models. Take advantage of these lowered costs and start small. Pilot a service where you can prove to scale or dump quickly. But don’t be afraid to fail! Just fail fast and move forward.

DC 360: Regarding COVID-19 and supply-chain disruption, what is the biggest adaptation your company has made?

Vivas: We quickly and efficiently implemented highly responsive networks that stabilized our value-creation chain end to end. This was a collaboration across our organization. We even set up remotely to avoid face-to-face interaction during the “lockdown” period.

Some examples include:

  • Streamlining our portfolio in order to boost output.
  • Deliberately increasing target inventories of articles with a more complex supply chain (such as dispensers).
  • Creating task forces to identify alternative suppliers.
  • Developing an employee-retention program to create stability within our operations.
  • Developing and sharing a successful health and hygiene website that educates our customers on how to avoid infection at the workplace. This site was recognized by experts and adopted by unions.

DC 360: Looking back over the past few years, is there anything you wish you had done differently in ecommerce?

Vivas: As we have seen with technology advancements, things move quickly. And at Essity, we have worked hard to keep up with and ahead of those advances. But what we’ve learned is that success in ecommerce is 10% technology and 90% an effective operating model.

In other words, success truly depends on an organization’s ability to effectively manage change. To do that, you must engage your people so that they trust the process. Invest as much time and as many resources as necessary to get employees involved right from the planning and development phase. As our approaches changed, having everyone on board helped them remain aligned and agile.

DC 360: What excites you the most in new digital commerce technology?

Vivas: While artificial intelligence is just emerging, and we must proceed with caution, I am excited about the potential AI has to power predictive personalization engines. This will allow us to truly connect with customers in a very intimate way, at scale and with immediacy.

To achieve this, we are actively working on the next wave of digital capabilities. We hope to further simplify the way we do business while still delivering exceptional customer service, driving us right toward our North StB2ar and ultimately translating into rapid, profitable growth for Essity Professional Hygiene and our partners and customers.

DC 360: Going forward, what do you see as the most significant commerce challenges and opportunities?

Vivas:  Our biggest opportunities lie in the ability to deliver value to our customers with simplicity and speed. And in the B2B world, how that  comes across is all in the eye of the beholder. In other words, digitally savvy customers have much different needs for simplicity and speed than do more traditional customers. But we must make the process seamless for both. The key is to be effective at servicing a wide range of customers, offering our digital tools to those ready to utilize them, and bringing customers with us as we maneuver this digital highway together.

Finally, I will say that as fast as technology moves, we must always pause to be sure our internet and customer information-management systems are secure. This is a trust we never want to breach.

Jim Daly is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy.

Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week, covering technology and business trends in the growing B2B ecommerce industry. Contact editor Paul Demery at paul@digitalcommerce360.com and follow him on Twitter @pdemery.

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Beauty brand helps consumers find what they need, then automate replenishment https://www.digitalcommerce360.com/2023/05/12/beauty-brand-helps-consumers-find-what-they-need-then-automate-replenishment/ Fri, 12 May 2023 13:45:24 +0000 https://www.digitalcommerce360.com/?p=1044139 When ecommerce beauty brand Furtuna Skin launched in 2019, it had just one product: its face and eye serum. The rest of the collection was supposed to launch in March 2020, said Chrissie Jemison, vice president of digital. As with much of the world, the pandemic changed that. With a full product assortment available, Furtuna […]

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When ecommerce beauty brand Furtuna Skin launched in 2019, it had just one product: its face and eye serum.

The rest of the collection was supposed to launch in March 2020, said Chrissie Jemison, vice president of digital. As with much of the world, the pandemic changed that.

With a full product assortment available, Furtuna Skin had to cover its ecommerce bases and make sure it had a strong enough conversion rate and average order value. It launched a skin care quiz to help with that.

Guiding the shopper

Jemison said Furtuna Skin has a 9% conversion rate among users who complete the skin care quiz and make a purchase. It helps grow AOV, too, she said.

“After taking a number of these myself, it got to the point I would see results and think, ‘well, you’re just trying to sell me on everything,’” Jemison said. “Our goal is to really get the right products in our customers’ hands.”

So the brand uses its quiz to offer a “hyper-curated” assortment that’s typically two or three products, Jemison said.

“We want to guide users to the items that will help them with their skin concerns,” Jemison said.

Moreover, rather than trying to sell a full-size product, Jemison said Furtuna Skin offers shoppers a “custom sample set.” Shoppers can pick any four items, which the product recommendations from the quiz help them select, and buy sample-sized versions of them to test.

We’re giving them two to three recommendations and saying test them out; see for yourself. Buy a discovery set,” Jemison said. “It is a lower-priced item because it’s a sample set, but that’s where we’re seeing greater success rather than just in lifting AOV.”

Learning the basics about loyalty and ecommerce subscriptions

By February 2021, it was time to focus on retention, Jemison said. That’s when Furtuna Skin simultaneously launched its loyalty program and auto-replenishment. Furtuna Skin’s full collection had launched in June 2020, but items had only been available for one-time purchases.

“Skin care is one of those categories that lends itself so beautifully to a subscription program,” Jemison said. “So we knew there was opportunity there.”

Furtuna Skin uses retention marketing platform Yotpo for its loyalty program. But the platform Furtuna Skin used to power its subscriptions wasn’t the best fit, Jemison said.

The subscription provider at the time, Recharge, required Furtuna Skin to duplicate its product catalog to identify which products were selling for one-time purchase and which sold for subscriptions. This was especially a problem for Furtuna Skin, Jemison said, because all its products are produced from ingredients in the retailer’s private estate in Sicily, Italy. The 800-acre estate —with a farm and wild terrain where its employees forage for ingredients it uses in its products — is also where sister brand Bona Fortuna’s products come from.

“That means we do small batches of products,” Jemison said.

She added that from an operations perspective, that means producing a new SKU for every new batch. Swapping out SKUs constantly, and having to create duplicates for each one in the online product catalog, was too much for Jemison’s “very lean” team, she said.

Moreover, shoppers would check out with a subscription product on Furtuna Skin’s website and get “kicked over” into a different checkout experience. Jemison referred to this as “hijacking” the cart in the checkout page.

This was a problem because, for example, when consumers were going through the checkout process while Furtuna Skin offered a promotion of a special gift with purchase, Jemison would have to set up the promotion on two separate platforms for the shopper to redeem it: Shopify (which hosts the brand’s ecommerce website) and Recharge.

Subscription switch

Furtuna Skin replatformed from Recharge to Ordergroove in summer 2022. Since then, its subscription orders more than doubled, to more than 7% of sales now from 3% before making the switch. Jemison said she projects subscriptions to account for 10% of total sales by the end of the year. She said the long-term goal is to get that up to 15% to 20% of total sales.

Furtuna Skin shares how its checkout page looks before and after replatforming to a different subscription vendor.

Furtuna Skin shares examples of how its checkout page looks before and after replatforming to a different subscription vendor.

Moreover, since making the switch, Furtuna Skin boosted its subscriber count 103%, and 50% fewer subscribers abandon their subscriptions. Furtuna Skin retains more than 30% of its customers too, and she said that number is still growing.

“A significant reason for our success with Ordergroove is that they were more flexible with their UX and UI options for us to present on our product detail page to make it very, very clear that you can make a one-time purchase or do auto-replen, and here’s your offer for doing auto-replenishment,” Jemison said.

She said Ordergroove’s platform integrates with Yotpo without issue. It doesn’t “hijack” checkout, and Jemison doesn’t have to duplicate her product catalog.

Ordergroove also allows Furtuna Skin to offer different incentives for one-time and subscription purchases, she said. Furtuna Skin currently offers 10% off the first order of a subscription product. It offers 15% off for every recurring order thereafter. Those recurring orders also build up loyalty points, which consumers can later use toward subscriptions as well.

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As orders mount, online men’s skin care brand outsources fulfillment, sells on Amazon https://www.digitalcommerce360.com/2023/05/09/black-wolf-skincare-fulfillment-amazon/ Tue, 09 May 2023 13:18:45 +0000 https://www.digitalcommerce360.com/?p=1044141 Black Wolf Skincare started off handling its own fulfillment processing. As sales grew, co-founder Alex Lewkowict said the brand needed to outsource its shipping services to keep up with demand. In 2019, Black Wolf Skincare invested in fulfillment software from ecommerce fulfillment services vendor ShipHero. At the time, Black Wolf processed about 1,000 orders per […]

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Black Wolf Skincare started off handling its own fulfillment processing. As sales grew, co-founder Alex Lewkowict said the brand needed to outsource its shipping services to keep up with demand.

In 2019, Black Wolf Skincare invested in fulfillment software from ecommerce fulfillment services vendor ShipHero. At the time, Black Wolf processed about 1,000 orders per month.

As orders mount, online men's skincare brand outsources fulfillment

Alex Lewkowict, co-founder, Black Wolf Skincare

“By my calculation, even at our volume of 1,000 orders a month, we saved more than $2 in shipping costs [per order] using their ecommerce tool,” he says. The tool helped Black Wolf Skincare find the cheapest available shipping carrier, he says.

“The plan started around $1,800 a month,” he says.

Using ShipHero’s software tool “was a no-brainer for us that paid for itself right away,” he says.

Shipping price fluctuations

Another pain point was price fluctuations, Lewkowict says. The men’s skincare brand could no longer ship from its one warehouse. Transit times were too slow or too expensive to ship to anywhere in the U.S., he says.

By the end of 2020, demand grew to more than 17,000 orders a month, Lewkowict says. And by the end of 2021, orders averaged about 25,000 a month. This prompted the retailer to outsource its entire shipping and fulfillment processes to ShipHero, he says.

By December 2022, Black Wolf Skincare averaged more than 40,000 orders a month.

With ShipHero, Black Wolf Skincare could inbound ship directly into any of its warehouses. Black Wolf Skincare manufactures its products in Florida.

Black Wolf sends its products to ShipHero’s West Palm Beach, Florida, facility. ShipHero then distributes shipments across its network of warehouses and carriers to ensure the fastest delivery times. As a result, Black Wolf was able to reduce the time it takes to ship orders to customers.

“Our average shipping time to customers went from five plus days to under three days for the same cost,” Lewkowict says.

That includes next-day shipping to anywhere in Texas, Florida, Georgia, New York and New Jersey, he says.

ShipHero ships Black Wolf’s orders using local carriers, Lewkowict says. “Customer satisfaction goes up as wait times decrease,” he says.

“I think a lot of brands are relying on 3PLs to bring in expertise that isn’t their expertise,” says Maggie Barnett, chief operating officer at ShipHero.

“It’s really tough to run a 3PL,” she adds. Third-party logistics services (3PLs) are the outsourcing of ecommerce logistics processes to a third-party company like ShipHero. 3PLs handle inventory management, warehousing and fulfillment operations.

“Companies want to concentrate on making the best product possible, not know what a routing guide is or worry about just-in-time delivery or that UPS is limiting your pickups, et cetera,” Barnett says.

Selling on Amazon makes a difference

Black Wolf Skincare began as a direct-to-consumer brand. But in mid-2020, Lewkowict says it realized that the brand was losing sales by not selling on Amazon.com Inc.

“We were very against going on Amazon because we wanted to have value in owning the customer relationship,” Lewkowict says.

That viewpoint changed. A consultant told Black Wolf Skincare that consumers were searching for the brand on Amazon directly or clicking on Google ads and Facebook ads and then going to search for the brand on Amazon.com. But since Black Wolf wasn’t selling on Amazon, consumers opted for products by other Amazon sellers/competitors.

“Instead of finding our product on Amazon, they’d see competitor options that were also advertising using the same keywords,” Lewkowict says.

Black Wolf Skincare launched on Amazon in 2020. Amazon sales accounted for about 10% of Black Wolf Skincare’s overall sales, he says. Since then, that percentage has grown. Selling on Amazon has “added a tremendous amount of volume and revenue,” he says, without revealing more. The average order value for Black Wolf Skincare’s DTC website and Amazon store is about $65, he says.

Lewkowict says the men’s skin care brand has capitalized off Amazon traffic. Some customers only want to buy off Amazon, he says.

“So, whether they’re seeing our TV ads or a Facebook ad, they’ll always go to Amazon to comparison shop,” Lewkowict says. “Our strategy here is to encourage those Amazon shoppers to go and buy on Amazon. Traffic that comes off of Amazon helps our ranking [on the marketplace search results]. The more shoppers search for our products, the better our ranking.”

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Top 5 online retailers in Health and Beauty https://www.digitalcommerce360.com/2023/05/03/top-5-online-retailers-in-health-and-beauty/ Wed, 03 May 2023 14:56:10 +0000 https://www.digitalcommerce360.com/?p=1043878 Top 5 health and beauty retailers ranked by annual ecommerce sales: Walgreens – 2022 Ecommerce Sales – $6.57 billion iHerb – 2022 Ecommerce Sales – $3.12 billion Amway – 2022 Ecommerce Sales – $2.32 billion The Estee Lauder – 2022 Ecommerce Sales – $2.06 billion Ulta Beauty – 2022 Ecommerce Sales – $1.95 billion   […]

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Goat milk skin care retailer is on a mission to be the GOAT of beauty brands https://www.digitalcommerce360.com/2023/04/28/beekman-1802-my-skin-biome-tool/ Fri, 28 Apr 2023 13:50:48 +0000 https://www.digitalcommerce360.com/?p=1043449 Consumers who use Beekman 1802’s My Skin Biome tool are more likely to remain customers than those who shop with the retailer but don’t use the app, said David Baker, chief digital officer at the goat milk-based skin care company. Moreover, app users dwelled 50% longer on the Beekman 1802 site. The app also led to […]

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Consumers who use Beekman 1802’s My Skin Biome tool are more likely to remain customers than those who shop with the retailer but don’t use the app, said David Baker, chief digital officer at the goat milk-based skin care company.

Moreover, app users dwelled 50% longer on the Beekman 1802 site. The app also led to a double-digit boost in cart size. Beekman 1802 credits this to My Skin Biome being a “fun and educational tool to help consumers decide on the best skin care products.”

The tool, launched in summer 2022, “assesses skin attributes and then offers a custom skin care routine based on skin’s redness, wrinkles, dark spots, hydration, texture and skin microbiome scores, while teaching users all about the microbiome and why it is important to overall skin health,” Beekman 1802 said.

Consumers can access the My Skin Biome tool, which is a mobile web app, through Beekman1802.com and submit a selfie taken in the app using the mobile phone’s camera. It provides scores based on six different attributes:

  • Skin biome
  • Texture
  • Dark spots
  • Wrinkles
  • Hydration
  • Redness

Users then review their scores on the attributes and select the skin concern they would like to focus on. The app then generates products tailored toward the user’s needs and skin care goals, offering users the ability to add products to their carts.

Beekman 1802 provides a QR code on its desktop website that shoppers can scan to access the My Skin Biome tool on their phones.

Beekman 1802 provides a QR code on its desktop website that shoppers can scan to access the My Skin Biome tool on their phones.

My Skin Biome tool empowers Beekman 1802 web traffic, sales

Consumers who use the My Skin Biome tool convert 35% more than those who don’t, Baker said. Furthermore, the average order volume for consumers who use the app is 13% larger than those who don’t. Beekman 1802 saw a 150% increase in pages per session among shoppers who use the My Skin Biome tool, and a 15% reduction in bounce rate.

“We were looking to have a diagnostic tool that would allow our neighbors — that’s what we call our consumers — to more actively take control over what is best for their skin care regimen and for us to provide them with personalized results,” Baker said. “The My Skin Biome app itself allows us to do that because it allows our neighbors to — really quickly with the use of the QR code — scan their face and deliver product recommendations based off of their particular needs.”

The My Skin Biome tool from Beekman 1802 and Perfect Corp. works directly from the website on a user's mobile phone.

The My Skin Biome tool from Beekman 1802 and Perfect Corp. works directly from the website on a user’s mobile phone.

AR/AI in health and beauty

Augmented reality and artificial intelligence are becoming table stakes in the beauty industry, said Wayne Liu, chief growth officer at Perfect Corp., which creates augmented reality and artificial intelligence technology. Perfect Corp. developed the My Skin Biome tool with Beekman 1802.

“Skin care is less AR; it’s more AI because it’s machine learning,” Liu said. “It’s a diagnostics tool. Basically, we have the user scan their face, and then we’ll identify the ‘concern,’ which is the skin care problem from their photo. That’s a machine learning process.”

Extending to makeup, Liu said virtual try-on tools benefit beauty retailers because they save shoppers time and help them make decisions faster. Augmented reality helps shoppers decide what shades and products they like on themselves.

“The more you try, the more you purchase,” Liu said. “Traditionally, you probably can only try one or two colors and it will take probably 20 minutes. Right now, you can try 30 colors within like 30 seconds.”

Beekman 1802 has a physical store with its farm in Sharon Springs, New York, as well as in LaGuardia Airport. It’s also available via Ulta Beauty stores. Ulta is No. 51 in the Digital Commerce 360 Top 1000 database ranking North American online retailers by web sales.

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Health & Beauty online retailers category snapshot [Next 1000] https://www.digitalcommerce360.com/article/health-beauty-online-retailers-category-snapshot-next-1000/ Tue, 25 Apr 2023 18:10:35 +0000 https://www.digitalcommerce360.com/?post_type=article&p=1043196 Trends and Facts from the Next 1000 Health & Beauty online retailers: Next 1000 Health & Beauty online retailers grew 6.4% in 2022 Next 1000 Health & Beauty online retailers sold over $1 billion in goods in 2022 Total retail sales for Health & Beauty in the U.S. grew 3.7% in 2022 Total retail sales […]

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Will alternate package pickup points take off? https://www.digitalcommerce360.com/2023/03/30/will-alternate-package-pickup-points-take-off/ Thu, 30 Mar 2023 18:49:33 +0000 https://www.digitalcommerce360.com/?p=1041200 Less than six months after implementing alternate package pickup points, more than 16% of PerryEllis.com’s orders are fulfilled with this option, says Jay Nigrelli, senior vice president of ecommerce at fashion brand Perry Ellis International. This is a win for the brand, Nigrelli says, as shoppers can choose a fulfillment option that’s convenient to them, […]

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Glossier targets new growth after direct-to-consumer sales stalled https://www.digitalcommerce360.com/2023/03/15/glossier-targets-new-growth-after-direct-to-consumer-sales-stalled/ Wed, 15 Mar 2023 20:39:34 +0000 https://www.digitalcommerce360.com/?p=1040191 Glossier is trying to rebound from a tumultuous period. The Gen Z-focused beauty brand revamped its executive ranks and is moving further beyond its direct-to-consumer roots. The New York-based company is making several pushes to strengthen its business. Glossier is announcing product launches every four to six weeks, expanding its brick-and-mortar footprint to 600 Sephora […]

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Glossier is trying to rebound from a tumultuous period. The Gen Z-focused beauty brand revamped its executive ranks and is moving further beyond its direct-to-consumer roots.

The New York-based company is making several pushes to strengthen its business. Glossier is announcing product launches every four to six weeks, expanding its brick-and-mortar footprint to 600 Sephora stores. These moves are part of a plan for global expansion.

The beauty brand expects retail sales to reach $275 million in 2023, a person familiar with the matter told Bloomberg.

Glossier ranks No. 570 in the Digital Commerce 360 Top 1000. The database ranks North America’s largest online retailers by web sales.

Glossier’s growth slowed

The company experienced a shaky 2022. It cut more than a third of its workforce and founder Emily Weiss stepped down as chief executive officer. Online and in-store sales slowed down, according to Bloomberg Second Measure, which tracks anonymized U.S. consumer transactions.

To reignite growth, Kyle Leahy expanded Glossier’s distribution beyond exclusively online channels since taking the helm as CEO. Leahy is a veteran of Nike Inc., American Express and Cole Haan.

Glossier was valued at $1.8 billion in July 2021, the last time the business raised money from investors, per PitchBook.

Chitra Balireddi will be Glossier’s chief commercial officer, taking over Leahy’s previous job. With leadership experience at Chanel and the Boston Consulting Group, she is expected to help bolster in-store and wholesale operations.

“We’re bringing in Chitra to help scale and grow the brand for its next level of growth,” Leahy said in an interview with Bloomberg. She pledged expansion, not just on different platforms, “but across the globe.”

Kleo Mack, the new chief marketing officer, will extend Glossier’s reach beyond its existing consumers as it completes the roll-out of its Sephora partnership. She already expanded the brand’s awareness among U.S. women in the 18-to-34-year-old age range, an important demographic for the business, according to a company spokesperson.

Glossier is also promoting Marie Suter to chief creative director. Suter was behind the brand’s efforts to open its flagship store in SoHo and spent six years at Condé Nast as a creative director for Teen Vogue.

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Ulta says overhaul of digital experiences paid off with increased sales https://www.digitalcommerce360.com/2023/03/10/ulta-digital-tools-grew-sales/ Fri, 10 Mar 2023 21:17:37 +0000 https://www.digitalcommerce360.com/?p=1039738 Ulta Beauty announced sales were up in the fourth quarter and the year in part due to a successful digital transformation. Sales for the quarter ended Jan. 28 totaled $3.2 billion, an 18.2% increase year over year. Full year sales were up 18.3% to $10.2 billion. The beauty company did not break out ecommerce sales […]

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Ulta Beauty announced sales were up in the fourth quarter and the year in part due to a successful digital transformation. Sales for the quarter ended Jan. 28 totaled $3.2 billion, an 18.2% increase year over year. Full year sales were up 18.3% to $10.2 billion. The beauty company did not break out ecommerce sales data.

Ulta is No. 51 in the 2022 Digital Commerce 360 Top 1000 database ranking North American web merchants by sales.

Omnichannel grows

Though Ulta didn’t share what percentage of sales were made online, it did say the number of those orders fulfilled by stores increased. 31% of online orders were fulfilled through buy online, pick up in store (BOPIS) and ship from store in 2022. This was a slight increase from 28% of online orders fulfilled this way in 2021.

Ulta plans to open 25 to 30 new stores in fiscal 2023 and remodel or relocate 30 stores throughout the year, CEO Dave Kimbell said.

New digital experiences

Kimbell credited a “phased refresh” of the company’s online store with some of the increased sales from the year and quarter in a call with investors.

Ulta added several virtual try-on tools in 2022, including the GLAMlab Skin Advisor 2.0 for trying on makeup, and the hair try-on tool.

Focusing on loyalty and data in 2023

Ulta added 3 million loyalty members in 2022, reaching a membership of 40.2 million. These rewards members shop at Ulta more frequently, and spend more on average, than non-members, Kimbell said.

In 2023, the beauty chain plans to continue improving its digital offerings, which will further increase membership, Kimbell told investors.

Ulta will also use analytics and customer data to bring back lapsed customers and increase retention, he said.

For the fourth quarter ending Jan. 28, 2023, Ulta reported:

  • Net sales increased to $3.2 billion, an 18.2% increase over $2.7 billion the year prior.
  • Net income reached $340.8 million, a 17.8% increase from $289.4 million in 2021.
  • Ulta opened 12 new stores, relocated one store, and remodeled another 12.

For the year ending Jan. 28, 2023, Ulta reported:

  • Net sales increased 18.3% to $10.2 billion, an increase from $8.6 billion in 2021.
  • Net income grew 26% to $1.2 billion, up from $958.5 million in 2021.
  • Ulta opened 47 new stores, relocated 12 stores, and remodeled 20 stores.

Percentage changes may not align exactly with dollar figures due to rounding.

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