Internet growing channel for buying beauty products.

Sales over the Internet now make up four percent of all sales or about $1.7 billion in the more than $42 billion dollar beauty industry. Even though it’s only about four percent of sales- it’s one of the fastest growing channels for shopping, according to The NPD Group.

In its recent report, Emerging Channels: Beauty Care Products Over the Internet, one in ten women across all age groups tell NPD they shop for beauty products, such as makeup, skincare, and fragrances, on the Web. Forty-three percent of women who shop for beauty on the Internet say they spent more online in 2006 than they did in 2005. The number one reason they use the Internet is convenience. More than seven out of ten (74%) of those women say it “saves time” and about 70 percent say “it’s easier/quicker to shop online than a store.”

“Consumers have become more wired and so they are more likely to research, choose and replenish beauty brands online. We find that women are less accepting of buying new brands over the Internet, but they are spending their money on brands they know and trust,” said Karen Grant, senior beauty industry analyst for The NPD Group.

Baby Boomer women are just as likely to shop on the Internet for beauty products as their younger counterparts. Women ages 45-64 make up a large segment of the Internet shopper base, and this age group will become increasingly more important as it’s the fastest growing segment of the population. In fact, among the women who shop the Web for beauty products over four in 10 (41%) are 45 to 64 years old compared to 36 percent of women who are 18-34 years old.

“Buying beauty products has traditionally been a touch and feel experience, but we are seeing women utilizing the Internet more and more to buy beauty products, particularly the brands they are familiar with. Age is not an issue; we find shopping online crosses all age groups,” said Grant.

The higher the income, the greater the likelihood women will shop for beauty products via the Internet. Fifteen percent of women in the $75,000 and above category shop the Web for beauty products, versus 10 percent of women with household incomes of $35,000-44,000 and seven percent of women with household incomes of$35,000.

Top 5 Websites Women Report Buying From:

Drugstore.com
Sephora.com
Avon.com
Clinique.com
Bathandbodyworks.com

“As a channel, the growing importance of the Internet for beauty is undeniable. However, like every other channel, it also has inherent challenges that must be better understood to fully leverage its power as it relates to beauty shopping,” said Grant. “For example, women love the Internet for its convenience, but they also love the in store experience. In fact, nine out of 10 females ages 18-64 tell us that the number one reason they will shop in-store is the experience of touching and feeling the products – something the Internet does not provide. So, it’s important to get a deeper understanding of what drives consumer choice on the Internet. Where and how beauty is purchased is not an either-or scenario. It is the marriage of the in-store experience with the Internet that will secure the success for brands, manufacturers and retailers in the future,” said Grant.

For more information at http://www.npd.com