A majority of online beauty shoppers will wait for lower prices and risk items going out of stock, a new study from D2C ecommerce company ESW finds. But there is also a sizeable number of “super shoppers” who will pay full price to get exclusive items.
Why we care. D2C brands are only a click away from their competitors making it easy for online shoppers to compare prices and products. To connect with customers, brands must identify and address the very different motivations that drive sales. Messages that land with one cohort will be wasted on other groups.
Seeking lower prices. The majority of online beauty shoppers are looking for bargains, the study found. This applied to younger consumers as well as older generations.
Sixty-seven percent of Gen Z and millennial digital shoppers said that they preferred to wait in order to pay a lower price on beauty products. And they accepted the risk that items would become unavailable.
Power shoppers. The study also identified a segment of “power shoppers” — those who spent at least $2,500 on beauty products annually.
Among “power shoppers,” 40% are bargain hunters. They spend more overall, but they resist paying full price on individual items.
Super fans. Against these trends, there is a cohort of “super fans” who are, indeed, willing to pay full price for exclusive or rare items.
Twenty-one percent of shoppers said they’d pay full price if they were one of the first customers to purchase the product. And 25% said they would pay full price if it was a limited-edition product.
These shoppers are receptive to brand events that emphasize the scarcity of a product. However, price-conscious customers would likely be discouraged by such an event.
Dig deeper: What is ecommerce and which trends are shaping its future?
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