The COVID-19 pandemic is calling all of our former notions of what is normal into question. And one area that is particularly impacted are the health and beauty industry. Long reliant upon brick-and-mortar locations and person-to-person interaction, e-commerce in the health and beauty industry is more a matter of changing attitudes than it is anything else.
Now, with social distancing measures and all kinds of new approaches to old industries, it seems like the time has come for a new assessment of health and beauty as it relates to e-commerce platforms and the future.
The management consulting company McKinsey released a report that not only emphasized the changes coming to the health and beauty industry but also how it will become a real vehicle of growth for investors and businesses moving forward in that market space. Many analysts expect that consumers will not only place a greater emphasis on their health and wellness moving forward but that these services will also have to cater to an increasing niche clientele predominantly operating through the digital economy norms.
Without stating as much, McKinsey equates the emerging health consciousness following COVID-19 as being akin to the luxury boom of the 2000s and the 2010s. During that period, luxury goods went from being the preserve of the rich and urban dwelling to middle America itself. Though there are fundamental differences between a “luxury” good and health and wellness, investors and analysts expect the market dynamics that will drive that segment’s growth as being similar to those that took Gucci from the high street to the main street.
Explosion of growth
What was one of the biggest reasons behind that explosion of growth? Online sales and giving customers access to platforms outside of the brands where they could perhaps shop around for that Gucci or Louis Vuitton bag at a better price than they might get at a store. In much the same way, health and beauty will become more nuanced, more bespoke, and much more consumer-friendly.
The one-size-fits-all approach that has governed much of the industry before will give way to a new era of house calls, telemedicine, exercise, and training equipment at home, and others. We’re already seeing ample evidence of this during the pandemic as telemedicine, specifically, has become a necessity during an era when doctors and patients need to limit their exposure to the general public. Beyond that, exercise equipment has seen record sales as more and more people ditch the gym and begin again in their homes.
The only question that weighs on the business and industry on a broader point is whether or not these trends have resilience as the economy begins to open back up. Evidence in favor of resilience points to the infrastructure being built out to support telemedicine and, on a consumer level, bringing health and wellness into the home with exercise equipment. Seeing these as capital intensive expenditures that will dissuade businesses and individuals from going back to the “old ways,” analysts feel confident that we will see some hybrid approach dominate in the near term with that giving way to a new consumer paradigm as attitudes shift and comfort levels increase with this new era in which we all find ourselves.
Digital Banking Solutions
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