Dive Summary:
- After almost sparking the consumer trend of “show rooming” single-handedly and sparking some retailers to re-invent themselves to compete, Amazon has its sights set on breaking into the market of upscale cosmetics, according to reports.
- Amazon plans to re-launch its beauty offerings later this year and many industry experts are expecting the move to have industry-wide impact if the online merchant provides discounts on “prestige cosmetics” such as Chanel and Clinique on a mass scale.
- According to NPD Group research, the market on upscale beauty products reported $10.6 billion in sales for the 12 months prior to April 2013.
From the article:
Unlike other consumer products where prices vary, in the world of beauty products, “what you pay in Macy’s is what you pay in Sephora,” Grant said …“Now with Amazon in the equation, it’s unsure how that’s going to play out. They’re huge enough to command other pricing,” she said.