Brushes and makeup

The State of
E-commerce in the Beauty Industry

The Rise of Social Media Marketing and the Importance of Influencers.

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Brushes and makeup

Executive Summary

Over the past decade, social media has become an increasingly popular method of communication. Today, around 70% of Americans use social media giants such as Facebook, Instagram, Twitter, and Youtube, to name a few, to entertain themselves and connect with others. In turn, marketers employ social media as a way to advertise to and connect with customers. However, living in a digital world, consumers of all ages have become increasingly adept at finding the pitch of a traditional social media advertisement. Consequently, companies, particularly those in the beauty industry, are hiring social media influencers to shape consumer attitudes towards their brands. What’s the benefit in companies leveraging these social media influencers? This paper goes into depth about the importance and role of developing intimate connections with consumers, namely via influencers, using the state of ecommerce in the beauty industry as an assessment.

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The Current State of
in Beauty

As of 2016, the beauty industry is worth $445 billion across the world and 17 billion in the US alone. Despite a declining market, the beauty industry has experienced a relatively consistent growth rate of $1 billion for the past three consecutive years and has expanded at a rate of 3% each year, increasing by 6% in 2016 alone.

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“By 2018, companies are projected to spend around $15 billion on social media advertising” Wall Street Journal


The Rise of Social Media Channels and Influencers

Since 2016, roughly 8% of Americans utilize online e-commerce shopping, with beauty and health services accounting for $8.1 billion of yearly spending. Given the influencer’s direct impact on purchases, social recommendations are not surprisingly documented to account for an impressive 26% of all purchases. Such purchase influence has companies taking notice. By 2018, companies are projected to spend around $15 billion on social media advertising alone with direct correlation to the generation of ROI by eleven-fold.

% of U.S. adults who shop online


Case Studies and

This paper shares the different trends we’ve observed between brick-and-mortars and digital stores in the beauty industry in regards to social media footprint and influencer impact.

The company’s goal is not simply to sell product, but to also create a memorable space for consumers to document, save, and share their visit Vogue

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