While online sales in the beauty category continue to rise, consumer loyalty is elusive, according to AT Kearney's 2016/17 report, Beauty and the E-Commerce Beast. The results of the 2016 study are based on an online survey of 800 women who indicated they had shopped for beauty products online at least once in the past 12 months. In 2015, the beauty industry saw $6.2 billion, or almost 8%, of its sales take place online. This is a full 1% higher than in 2013. As one might suspect, Amazon is most commonly used website (69% of the sample), followed by Sephora (41%), Ulta (37%), and Walmart (36%). Online shoppers want good prices, free shipping, and secure sites, according to AT Kearney.


Other findings from the study:

• 67% of the respondents reported using four or more websites to fulfill their beauty and personal care browsing and shopping needs. Some use as many as 20 sites.
• Three categories in the sector have reached double-digit penetration: beauty sets and kits (17%), skin care (15%), and color cosmetics (10%).
• Men’s grooming subcategory rose from 5 to 7%.
• Hair care, and deodorants and depilatories, had the lowest penetration rate at about 2%.
• E-commerce penetration levels are estimated at 7% for mass and 14% for prestige, a significant jump for prestige from its 11% penetration in 2013.


According to AT Kearney, most online beauty shoppers fall into one of three groups: Online Enthusiasts (55% of respondents) comfortable shopping for their beauty needs online but also shop in store, Information Seekers (36% of respondents) research beauty and personal care products online, but they generally prefer shopping in a store, Showroomers (9% of respondents) prefer to browse in a store but shop online.