Retail e-commerce sales have risen steadily, with the proportion of online sales rising from 2.4% in 2016 to 4.0% in 2019. The month of April highlights the peak of the COVID-19 impact, with the proportion of retail e-commerce sales jumping from 3.8% in April 2019 to a record high of 11.4% in April 2020.Jul. 24, 2020
Most Popular Purchases – Fashion and Beauty
Most Popular Store is Amazon – Over 2 Billion a Year.
The Bay is the most popular for Fashion.
In person sales decrease and E-commerece increases
Will this continue post covid-19?
Impact of border closure – More local shopping
Trend - Eyebrow/Lash Tints from RefectoCil
Trend - Beauty Bar the Esthemax
Salon Suite Concept
A salon suite is an upscale mini salon that allows individual beauty professionals to own their own salon without all the risks, expense, and overhead related to traditional salons. You have the luxury of working when you want and to use and sell the products of choice keeping all profits.
Salon suite concepts MY SALON Suite, Sola Salon Studios, Salons by JC, Phenix Salon Suites and Image Studios.
Wellness
Cosmetic as a mental health aid - In any given year, 1 in 5 people in Canada will personally experience a mental health problem or illness.
Mental illness affects people of all ages, education, income levels, and cultures.
Approximately 8% of adults will experience major depression at some time in their lives.
Self Care Rituals - self massage, baths, healthy skin not perfect skin.
Escape
Key Words; Escape to Childhood, Travel Fun Colours, Unicorn/Mermaid Beauty
The travel restriction for individuals around the world has been very difficult. Attract potential customers by offering them products that can help them escape. These products will take their customers away to a new destination in the comfort and safety of their homes. This can be achieved through color, imagery, scent and texture. Consumers can go back to a time when they are on a warm beach enjoying the sun or exploring the street of an ancient city.
Consumers want to try fun new things like new hair colour in non traditional shades or bold eyeshadows to be seen while wearing a mask.
Natural Products
Canada has one of the largest markets for natural & organic personal care products in the world. These products are gaining popularity as Canadian consumers look to avoid contentious chemicals in cosmetics & toiletries.
Natural skin care products comprise most revenues, since products like lotions, moisturisers, masks and oils are typically the entry point for consumers seeking natural & organic personal care products. Natural hair care products have the highest market share however, because of the popularity of such products in retail and non-retail outlets.
When considering a purchase, Canadians believe in supporting brands that provide environmentally-friendly packaging (77 per cent); don't test on animals (72 per cent); include all-natural ingredients (72 per cent); and share their values (62 per cent). Surprisingly, the trend toward buying gluten-free may be on the decline as less in 1 in 4 (23 per cent) cite it as an important consideration.
Work/Life Balance
• Cosmetic Product can be an important factor to lift moods and enhance well being. Brands can bring products to their customers that help them connect to their emotions and help them through difficult pandemic quarantines.
• During the pandemic, many employees are working from home. This new circumstance of home/work-life balance can be achieved with a various products. Products can set the mood for work time and for home time. One example is with fragrance. The work fragrance will be sharp and invigorating to promote concentration and the home fragrance will be comforting and sweet.
Home Care
Due to lockdown restrictions, more individuals are at home. More products for the home are being used. There is a focus on the environment. This makes sustainable packaging an important buying factor for Canadian consumers.
Products that are selling well are the following;
- Laundry Detergent (Cold Washing)
- All Purpose Cleaner (Natural Formulas)
- Candles
- Home/Linen Fragrance Sprays
The Good Face Project
The Cosmetics and Personal Care industry, there is a common need for better visibility of regulations and ingredient restrictions in the product design process. The multiple handoffs, the long delays, the added costs, and the risk of having to reformulate are common pain points. To alleviate this problem, Good Face Project has created the GF Formulator.
The Good Face Formulator leverages the largest cosmetic ingredients ontology of 100k+ individual ingredients graded across 15 dimensions of safety and efficacy to provide visibility of compliance with the following:
Country and State Regulations: California, EU, Canada, UK, and later China, Australia and many more
Clean Retail Category Restrictions: Clean at Sephora, Ulta Conscious Beauty, Credo Beauty, The Detox Market, Whole Foods, QVC Clean Beauty, Follain, Target Clean, Bloomingdales, Neiman Marcus, and others
Consumer Certifications: IFRA, Good Face Index, and later EWG Verified, COSMOS
What is more, GF Formulator enables product and compound design professionals to maximize the number of cosmetic benefit claims their formulas can carry.
Finally, powerful custom features of the Good Face Formulator include the following:
- Private Ingredient Blacklists
- Contract Manufacturer/Brand Private Collaboration Sandbox
- Private Compound Ingredients Inventory
The Good Face Formulator is already being used by beauty retailers to develop their Owned Brand (Private Label) portfolios in collaboration with contract manufacturers, as well as by the largest fragrance house globally, for the purposes of designing fragrance compounds that meet the evolving regulatory restrictions.
KaiosID
Protect Your Brand and Connect to Consumers with KaiosID
The Canadian Cosmetic Cluster had the pleasure of meeting Swiss company, KaiosID at the Innovation Days Barcelona show. This is a great example of virtual trade shows providing connection in days when travel is non-existent. KaiosID is a company to provides excellent solutions for brand protection and consumer engagement. KaiosID was created by Johan Wüthrich and Raphaël Hunziker. This talented dynamic duo worked together at a global packaging machinery company. At the company, they gained the experience and industry insight to create their new venture.
What is Grey Market?
The grey market or dark market refers to the trade of a commodity through distribution channels that are not authorized by the original manufacturer. Grey market products are products traded outside the authorized manufacturer's channel. A great example is products being sold on Instagram or YouTube without the authorization of the original manufacturer. The cosmetic products sold could be real, or they could be fake. It is difficult to know for sure. However, as the distributor has not been authorized by the manufacturer the authenticity of the product cannot be guaranteed. This is potential, where the problems arise for cosmetic brands[1].
Counterfeit Problem in the Cosmetic Industry?
There are dangerous consequences of counterfeit cosmetic use. Counterfeit cosmetics can be harmful and even deadly. Researchers have found fake cosmetics containing known carcinogens such as arsenic, beryllium, and cadmium; others have exhibited high levels of toxic heavy metals like lead and mercury[2]. The has become a growing problem, even in the USA. Last year, the Los Angeles Police Department (LAPD) impounded counterfeit beauty products worth $700,000[3]. In January 2020, the LAPD seized more than $300,000 in counterfeit makeup products impersonating Kylie Jenner’s company Kylie Cosmetics[4].
Founder Johan Wüthrich commented during our interview of how in the USA, products are often bought online and replaced with fake products when they are returned. Then the original brand has counterfeit goods in their stock. Cosmetics and pharmaceutical products made up 6.5% of all counterfeit good seizures in the U.S. in 2017, estimated to be worth $69 million[5].
KaiosID has the perfect solution - a unique invisible pattern for the product packaging. Once the pattern is created you can take it to your packaging supplier and it will be incorporated into your current packaging process. No extra step or added hassle. The packaging gets printed just as it always has but provides extra protection. Unlike the sticker product codes that can be covered or detached from the packaging unit, the pattern is the original packaging unit. The brands can decide who scans the item and give access to different levels of information both in the app and on the platform. After all the information is gathered from the scans during the different steps, the platform summarizes globally all the data of the items.
Not Just Protection - Connect and Engage with Your Brand Audience
As the world turns increasingly to the digital side, companies are desperate to connect and engage with their customers. The brands establish a closer relationship with the final consumer, who scans the product. This allows to track customer responses to advertising campaigns in real-time and thus increases loyalty and trust.
The consumer can scan the item during or post-purchase and gets information that allows them to learn more about the brand, enabling the possibility for targeted marketing campaigns.
Transparency is a huge value for consumers as they can scan and find out additional information on the ingredients, the product's origins, and instructions about how to use it.
For more information on all KaiosID products and services visit their website here.