How beauty brands can win the holiday season with speed, unboxing, and personalization

06-Nov-2024 - Last updated on 06-Nov-2024 at 15:01 GMT

As the holiday season approaches, beauty and personal care brands are seeing heightened demand and unique challenges in meeting consumer expectations. Outerspace, a third-party logistics company specializing in beauty brands, recently conducted a survey in partnership with Pollfish to gain more significant insights into holiday beauty consumer trends.

The survey asked 1,000 online shoppers in the US between the ages of 18 and 64 a series of 11 questions regarding their shipping, unboxing, and return preferences.

We spoke to Ricky Choi, CEO and co-founder of Outerspace, for his insights into the survey's findings regarding important shifts in consumer preferences and critical strategies for brands aiming to optimize fulfillment, enhance customer experience, and build brand loyalty.

One of the main insights from Outerspace's survey is the high demand for fast shipping, particularly for gift sets and sample kits, as consumers seek convenient options for holiday gifting. Choi highlighted that these items see a "clear increase from Black Friday onward."

"No matter which brand we're fulfilling product for, there's always a clear increase in demand for low-emotion, turn-key items that make for easy gifting," Choi said, adding that gift sets, in particular, are expected to be popular as they allow recipients to explore multiple products without committing to a single item. As a logistics company, Outerspace is leveraging these findings and addressing this trend by pre-building sample sets for their partner beauty brands, ensuring these popular items can be packaged and shipped within a single business day, a critical service for brands looking to meet peak demand promptly.

This expectation for speed, however, is not universal. Choi noted that consumers are more flexible with shipping times for non-essential products like home decor and jewelry, showing a willingness to wait for certain beauty products. "My hunch is that when purchasing a beauty product they're trying for the first time or gifting to someone, shoppers will be more patient with shipping times—especially if the brand has a distinct unboxing experience or a free sample with purchase," he explained.

In a competitive market, many beauty brands invest in an elevated unboxing experience, particularly for younger consumers who value premium packaging. The Outerspace survey determined that "nearly three in five (57%) shoppers expect a premium unboxing experience when purchasing directly from a brand — and younger generations are more likely to expect it."

As a result, according to Choi, the unboxing experience is an integral part of a brand's identity. "The unboxing experience should hold as much weight as a brand's website, because every step of the purchasing experience contributes to a customer's perception of the brand," he stated.

Outerspace's approach to unboxing involves carefully curated packaging, samples, and informational materials that reflect the brand's image and messaging, and Choi advised that brands looking to cater to younger generations should view premium unboxing as an investment, one that has the potential to build customer loyalty and distinguish a brand from competitors on third-party marketplaces.

Personalization is another significant trend, especially as more consumers seek unique, meaningful gifts. Choi highlighted that "offering personalization and customization options is a savvy way for brands to make products feel higher-value and more giftable during the holidays."

Outerspace's survey supports this notion, showing that two-thirds of consumers are willing to wait longer than six days to receive personalized products. This willingness to wait can be a strategic advantage for brands, especially as customized orders are frequently final sale, reducing the volume of returns that typically surges after the holiday season.

For beauty and personal care brands, a smooth returns process is essential for maintaining customer loyalty. Outerspace's survey found that ease of returns was a significant consideration for over half of respondents when deciding whether to make a repeat purchase and, perhaps even more significantly, that "93% [of respondents] say easy returns are important when they purchase directly from a brand."

"Any adjustments brands can make to their returns policies to ensure a frictionless experience for customers are essential," Choi advised, noting the increased likelihood of repeat purchases when returns are convenient.

Within the beauty sector, specific categories are expected to perform exceedingly well. Outerspace's data concluded that skin care and fragrance products are forecasted to be top sellers due to their relatively low emotional investment for buyers compared to cosmetics or hair care products, where consumers may already have strong brand preferences.

As a result, Choi recommended that brands take advantage of this trend by offering sample kits for skincare and fragrance products, as these kits can foster long-term customer loyalty. "While this may result in a lower average order value in the short term, it's more likely to cultivate a relationship with a customer and result in them returning for a repeat purchase of the items they enjoyed from their sampling," Choi concluded.

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