The beauty and personal care retailing sector has been adversely affected by the impact of the COVID-19 pandemic during 2020, although not as seriously as some other non-food sectors. We expect the spectre of COVID to continue suppressing demand throughout much of 2021 as consumers are likely to remain reticent to venture out to shops in large numbers until the mass vaccination programme has been completed. Additionally, many consumers are living on reduced incomes, either through having been placed on furlough-type programmes or losing their jobs and this will suppress demand further.
As a result of many beauty specialists’ stores being closed during lockdown, there has been a shift within the market, with online sales growing by an estimated 25% during 2020 and many consumers buying beauty and personal care items online for the first time. Nevertheless, the vast bulk of sales still go through shops and the major retailers will continue to invest in their multi-channel models. In time, we expect retailers to reduce the number of shops they operate as their online share of sales grows but in Italy online retailing is generally quite poorly developed so this will only happen over a relatively long period of time.
Our consumer research for this report identifies a number of opportunities for retailers to innovate both in terms of their in-store and online offers, ranging from more hygienic ways to try out products, to the use of smart mirrors, augmented reality technology and online video consultations. Looking to the future, we only expect the market to return to more normal levels by 2022 and even then there will still be a greater focus on price and value than before the pandemic due to the number of people whose living standards have been adversely affected by the impact of COVID and it will take time for their finances to recover.
Key issues covered in this Report
The impact of COVID-19 on the beauty and personal care retailing sector.
How people shop for beauty and personal care products and which retailers they use.
The winners and losers in the beauty and personal care retailing sector since the start of the COVID-19 outbreak.
How behaviours of beauty and personal care shoppers have changed since the start of the COVID-19 outbreak.
The growth of the online channel within the beauty and personal care category and the boost given to it by the COVID-19 outbreak.
Areas covered in this Report
This report examines the beauty and personal care retailing market in Italy. The report combines analysis of the market in Italy, including market sizes and forecasts for consumer spending on beauty and personal care and beauty retailers’ sales, along with our in-depth consumer data which analyses shoppers’ behaviours in Italy. It covers:
Beauty – including makeup and colour cosmetics, nail care, fragrances and skincare
Personal care – including haircare, body care, hair removal and everyday toiletries such as oral hygiene, bathing and deodorants
BPC accessories and electricals – including hair and make-up brushes, hair styling tools, beauty and dental tools.
For our consumer research this year we asked questions about the following topics:
Beauty and personal care products purchased in the last year
Participation in online and in-store shopping for beauty and personal care products in the last year
Which retailers have been used for beauty and personal care shopping in the last year
Interest in a range of statements relating to innovations in shopping for beauty and personal care products.
For the purpose of this report, Mintel has used the following definitions:
Consumer spending: The total amount spent by Italian households (including sales tax) on food, drink and tobacco. This is for retail purchases only, and excludes foodservice spending, such as through bars, hotels and restaurants. Tobacco is the exception to this rule.
Retail sales: Total sales of all types of goods and services (excluding sales tax) by beauty and personal care retailers. It includes online sales of these retailers where the majority of sales are in bricks and mortar outlets.
