21 Jul Top 10 Retail Trends 2022: Part 1
Our team recently went to the IECSC in Las Vegas and attended a class on the top 10 retail trends of 2022. Led by Patti Biro and Associates, a boutique consulting firm specializing in brand enrichment through special events, retail consulting and education in the personal products, spa and wellness industry, they posed the question: have you taken a hard look at your retail offerings? Because you should.
And what we realized was: now is better than later, as the beauty industry is changing as fast as you can say “Botox”. Fortunately, small businesses and independent retailers are building momentum this year, with automation tools and other technology that’s proving extremely advantageous. As we gear up for the holiday shopping season, you don’t want to miss out on these top retail trends for 2022. Before we dive in, let this quote sink in for a moment:
“The service is not over until the service provider has made a home care recommendation”
– Patti Biro of Patti Biro and Associates
Ok now, let’s take a look at the top retail trends for 2022: #1-5. And stay tuned for #6-10!
Retail Trend #1 | Convenience is Key
“Retail, what’s old is new again. Derived from lockdowns and social distancing, the COVID-19 pandemic changed consumer behavior, accelerating the adoption of online shopping. Over 18% of U.S. goods were purchased online in 2021, up 10 percentage points since 2012. Forced into rethinking their strategies quickly, brands are blending their online and offline presences leveraging an established approach — omnichannel. Adopting an omnichannel strategy requires creating a coordinated, seamless shopping experience across multiple channels, re-envisioning the role of physical stores in the process. “– Alicia Fuller, Silicon Valley Bank
- Social commerce is one of the biggest digital trends happening right now in the retail industry — and it’s booming. According to a survey conducted by Square and Wakefield Research, “this new omnichannel landscape is thrilling, with 75% of retailers surveyed now selling on social media. 43% of retailers who sell on social platforms say half or more of their revenue comes from social media sales.”
- Even though retailers are going digital, it’s not an all-or-nothing situation. Retailers are focused on the right combination of digital and physical customer experiences. “Consumers clearly value and use flexible omnichannel experiences, like buying online and picking up or returning in store,” says Roshan Jhunja, GM at Square for Retail.
- The retail marketplace is more dynamic than ever before. Consider how you reach and engage with your clients and prospective clients. Are you effectively using social commerce, text messages, live commerce, digital marketing, blogs, email, YouTube, and social media in addition to your website to drive your business?
- Curbside pickup and delivery are still in demand. Beauty businesses are even looking to Door Dash to make things convenient for their customers.
Retail Trend #2 | Sustainability and Green Retail
Consumers now are looking to support brands that prioritize reusability, sustainable or recycled materials, non-toxic or chemical-free products, and use less packaging. Environmental and social responsibility and sustainability are key and are here to stay. In fact, according to Businesswire, one third of consumers are willing to pay a premium for sustainable products, and companies should prepare for sustainability to become the expectation and not the exception in the future.
Although the beauty industry is no stranger to waste, sustainable practices have long been a part of Ultraceuticals’ value proposition, and the brand is as green as can be for a medical cosmeceutical skincare line.
Ultraceuticals Sustainability Statement
Our cleansers, moisturizers, masks and sample tubes are recyclable, and manufactured using solar energy, The carton is also recyclable using a matte finish which is biodegradable and produced locally. Ultraceuticals is committed to reducing our carbon footprint and we participate in an agroforestry of Pinus radiate (Remarkable Pine) plantation of 20,000 trees and native Australian trees. We are devoted to pursuing a cleaner, greener future with you.
Retail Trend #3 | Personalization
Bespoke offerings are no longer a luxury in today’s retail environment. The digital revolution has created a new breed of consumers who not only expect a personalized experience but demand it. Take a look at some of these stats:
- 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them. (Accenture)
- 63% of consumers will stop buying from brands that use poor personalization tactics. (Smart Insights)
- Shoppers are willing to pay up to 16% for personalized shopping experiences. (PWC)
- 68% of shoppers are unlikely to return to a website or store that doesn’t provide a satisfactory customer experience. (Forrester)
- In the U.S., even when people love a company or product, 59% will walk away after several bad experiences, 17% after just one.
The ultimate goal of personalization is to make consumers, clients, customers feel unique, heard, and emotionally connected. And, when it comes to the shopping experience, nearly 80% of American consumers say that speed, convenience, knowledgeable help and friendly service are the most important elements of a positive customer experience. When these boxes are ticked, the customer is far more likely to remain loyal. Contrarily, if brands aren’t investing in technologies or systems that prioritize these benefits, they are losing out. This is because when customers’ expectations are met or exceeded, companies gain measurable business benefits—including the chance to win more of their customers’ spending dollars. (PWC)
Other ways personalization comes into play
- Explore skin analysis and facial imaging systems such as Observ 320 or Observ 520X. These skin diagnostic tools allow you to take your clients on a skin tour and show them what goes on beneath the skin surface. The highly interactive view of their skin (concerns) leads to much more engaging and convincing treatment advice. Used as a powerful tool to underline the trusted value and quality of your treatments, the images turn consultations into engaged customer experiences. Notably, studies have shown the Observ devices can help increase retail and service sales by 40%. Contact us for more information.
- Stand out from the rest and partner with brands that aren’t available in every other skin clinic in your zip code.
- Consider partnering with beauty brands that do not sell on Amazon, other third-party retail sites such as dermstore.com or those that offer territory exclusivity.
Retail Trend #4 | Wellness
COVID-19 impacted and altered many facets of our lives, including our definition of wellness. Pre-pandemic, wellness was already emerging as one of the biggest consumer spending sectors in the market, mostly in the form of physical health and fitness. Then COVID-19 pandemic came along and turned the world upside down. It wasn’t until then that our collective notions about self-preservation, wellness, and well-being really began to shift. The pandemic revealed that taking care and control of our mind, body, and health is even more critical than before. As behaviors continue to evolve in response to the pandemic, social and political environment, and climate change, consumers are seeking out approaches and self-pampering products that prioritize mental health and improve our balance and peace of mind. Self-care has really taken center stage and brands that join consumers in this journey and engage with them accordingly will earn their business.
The biggest trends in wellness include:
The importance of sleep and how to sleep better is certainly not new to 2022. But after a tumultuous couple of years, the days of sacrificing sleep to achieve career goals are long gone. High-quality sleep is essential for our brain, immunity, and cardiovascular, metabolic, and gut health. We want to sleep better, optimize our productivity, and feel healthier. Products like lavender pillow sprays, sleep diffuser blends, incense cones, night-time teas, relaxing bath salts are all excellent additions to your retail mix, especially for the holiday season.
Consumers today are much more aware of the links between gut health, hormone balance and wellbeing and the impact these have on skin health, There is a growing trend for efficacy-backed beauty edibles and tandem products that work both internally and topically. These wearable wellness patches offer both plant-based and hemp-based solutions to “life’s common ailments” such as tiredness, lack of focus, trouble sleeping, aches and pains and more. Only $12 for a pack of four, these are an excellent upsell opportunity.
Intimacy products from massage oils to personal massagers have gone mainstream and become part of the wellness and self-care sphere. Brands are striving to normalize women’s sexuality by reframing it as part of their overall wellbeing. There is a way to do this in a tasteful manner and can definitely liven up your retail area
Retail Trend #5 | Male Groom Boom
Male-marketed beauty and grooming is on the rise, and is a sector expected to generate global sales of $81.2 billion by 2024. Partly instigated by the lockdowns – when men were noticing their appearance more when forced to stare at themselves on Zoom calls – heterosexual male attitudes toward cosmetic products have really started to shift. Wendy Wallner, Ipsos SVP and Senior Client Officer, said, “There is considerable openness to males of all ages using cosmetic products than we’ve observed historically. This has been fueled by the anonymity of the ecommerce buying environment, the recent surge in zoom calls as well as concern about social media appearance.” On top of that, traditional values of modern masculinity are beginning to evolve as well. Views on gender roles and stereotypes are evolving, wellness, self-care, confidence, and looking and feel good are part of everyone’s consciousness, regardless of gender.
Those coming out on top post-pandemic also all have something in common: they invested in expanding their marketing and advertising efforts as well as customer loyalty programs. We hope these trends will help you think and possibly restrategize your retail offerings for the second half of 2022. Come back for the top retail trends #6-10!