GXO Logistics Inc.
10/31/2024 | Press release | Distributed by Public on 10/31/2024 05:06
GXO Releases 2024 Global Beauty Report
Survey of thousands of consumers in the U.S., UK, France and Germany reveals significant evolution of consumer priorities
GXO Logistics, Inc. (NYSE: GXO), the world's largest pure-play contract logistics provider, today released a comprehensive report on key trends shaping the fast-growing global beauty industry, which is expected to double in revenue to $758 billion over the next decade.
In a rapidly evolving consumer landscape, GXO's research analyzed current consumer behavior in the beauty industry and the forces driving it. The report, "Beauty Industry Insights 2024: A Consumer Spending Pulse Check," highlights a significant shift in consumer preferences compared to just five years ago. Today's consumers are savvier and more intentional in their choices, and nearly half are choosing to shop online. As such, ensuring a seamless customer experience, both online and offline, is of paramount importance to building and maintaining brand loyalty and to meeting quickly shifting customer demands.
GXO Commerce Strategist Kamran Iqbal, noted, "To thrive in this dynamic retail environment, beauty brands increasingly must prioritize a customer experience that fortifies brand and product loyalty. Of course, retailers must have the right product in the right place at the right time. But to cement the brand experience, they must also ensure a seamless buying experience from beginning to end, including more effectively leveraging online channels and enhancing product personalization."
Key findings from the report include:
- Beauty products play an increasingly important role in people's lives, with 66% of respondents saying that beauty and related products were essential or very important to them.
- The importance of loyalty and trust is growing… yet is still largely untapped. Brand loyalty currently sits at 38% yet a majority of consumers consider brand reputation and previous experience an important factor in their buying decisions.
- The 'less is more', #nomakeup, and clean beauty trends present an opportunity to deepen product loyalty, as customers turn towards minimalistic and clean beauty items. 41% of beauty consumers are already loyal to specific products and most are opting to wear minimal makeup that fits the "no makeup" look and slim skincare trends - cementing certain products as essentials in their beauty routines.
- There's still a lot of room for growth in the online channel. Almost half of consumers prefer purchasing beauty products online. Furthermore, over seven in ten consumers use one or more digitals channels as sources for the latest beauty trends and products. This represents an opportunity to grow online shopping through digital platforms such as YouTube, TikTok and Instagram.
- The personalization of beauty products is growing. 58% of the respondents expect personalized skincare recommendations/regimens and/or customization of products or subscription boxes when buying beauty products.
- The online shopping and delivery experience can be elevated. 64% of respondents would rather wait for all items to be delivered in one package instead of separately, and 55% would wait longer for an environmentally friendly delivery option.
Iqbal concluded, "No matter the current or next big trend in retail, getting product to the consumer on time and at the best price will always be mission critical. This reliability fosters trust and loyalty. A well-optimized supply chain enables brands to respond swiftly to ever-changing shifting consumer tastes and demands, ensuring they remain relevant and competitive."
GXO's sophisticated logistics solutions for the beauty industry combine global warehousing and distribution scale, industry leading technology, and specialized capabilities, to ensure superior customer experience. This includes returns, kitting, engraving, branded gift wrap and high-touch pack out, from initial influences, through to personalization, fulfillment, delivery and post-purchase phase.
Survey Methodology
GXO commissioned Arlington Research to survey 4,000 consumers in the United States, United Kingdom and Ireland, France, and Germany, about their influences and expectations when it comes to beauty purchases. Respondents were asked about the role of beauty products in their lives, key influences and trends, purchasing preferences and expectations from brands now and in the future. Interviews were carried out with consumers aged 16+ who are interested in or passionate about beauty (defined as skincare, makeup and haircare).
About GXO Logistics
GXO Logistics, Inc. (NYSE: GXO) is the world's largest pure-play contract logistics provider and is benefiting from the rapid growth of ecommerce, automation and outsourcing. GXO is committed to providing a diverse, world-class workplace for more than 130,000 team members across more than 970 facilities totaling approximately 200 million square feet. The company partners with the world's leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube.