As the hordes of Black Friday shoppers descended on the mall, one group, in particular, was causing a stir. The health and beauty section was seeing more activity than ever before, with people loading up on cosmetics, skincare products, and luxury items.
For many millennials, interest rates and the housing market had put home purchases out of reach, so they were using their Black Friday budgets to indulge in some self-care instead. The health and beauty category was seeing especially high numbers thanks to Millennial "revenge-spending." This is when people spend money on high-ticket items like luxury beauty that they can afford since their other expenses have been taken away from them. So even though most people are buying less this Black Friday compared to previous years, the ones who are spending are spending more overall.
In this issue, we will cover:
Peak Season Surcharges & the Global Supply Chain
Peak Season Surcharges
Peak surcharges are currently in the range of $2.50 per package for FedEx Ground Economy, the SmartPost replacement, $0.90 and $0.34 at DHL eComm for over and under a pound, respectively, $0.25 to $0.80 for Priority Mail. OSM Worldwide surcharges remain very low, at $0.20 and $0.10 for over and under a pound, delivering great value to OceanX clients.
Global Supply Chain
In what has been a continuous cycle, Shanghai, home to one of the largest export ports in the world, is grappling with COVID restrictions which may impact the global supply chain. This time, however, protests over the COVID policies and the resultant government response fuel the fire.
As a global provider of essential internet infrastructure for commerce, Shopify announced a record-setting Black Friday with sales of $3.36* billion from the start of Black Friday in New Zealand through the end of Black Friday in California. This marks a 17% increase in sales over Black Friday in 2021 (19% on a constant currency basis).
At its peak, merchants on Shopify saw sales of $3.5 million per minute at 12:01 PM EST on Black Friday, collectively.
During the weeks leading up to Black Friday, shoppers viewed an average of 6 products 12 times each before purchasing on the day of Black Friday. But in the Health & Beauty category, shoppers viewed a product 14 times before buying it on Black Friday.
Black Friday beauty recap: Sales up 14%, site traffic up 26%
The data is in for Black Friday, and the beauty category saw double-digit sales growth with shoppers who did their research. According to data from Salesforce, Black Friday weekend sales in the health and beauty category grew 14% year-over-year, making it the third most popular vertical after electronics and activewear. Beauty retailers’ site traffic on Black Friday, meanwhile, was up 26% year-over-year and 97% higher than an average day in 2022, based on data from retail technology company Bluecore.
How brands are incorporating the metaverse into their holiday marketing
To filter out the noise this holiday season, retailers are solidifying their presence in the metaverse this holiday in an attempt to provide a unique experience for shoppers. As shoppers continue to shop at a range of channels this holiday season, brands are holding onto the possibility of the metaverse playing a bigger role in shopping in the near future. However, experts warn that it might be too soon for the metaverse to offer a return on investment.
Can Black Friday solve fashion’s stock problem?
Over-ordering and delays to the shipment of seasonal products have left some fashion retailers with excess inventory to shift this Black Friday. But the controversial discounting event may not be the hoped-for panacea.
Too Faced offers ‘Pink Glove’ holiday service via SMS text messaging
SMS text communications from brands usually feature a version of the same thing: an announcement of a limited-time sale or a new product, or an incentive to purchase with a special discount code. But Too Faced wanted more interaction with consumers and sought out the opportunity to engage in two-way conversations. Billed as a concierge service, Too Faced tapped SMS marketing company Community to provide one-to-one texting capabilities. Community works with companies like McDonald’s and celebrities and other public figures like Michelle Obama.
Inside the growing backlash against celebrity skincare brands
From Brad Pitt to Travis Barker, famous names are cashing in on the boom in prestige skincare. Critics question if they are squeezing other brands out of an increasingly competitive industry.
Sephora names Guillaume Motte its next CEO
Sephora’s next CEO is an insider, having spent nearly five years at Sephora and its parent company LVMH. Motte has already worked as CEO of one of Sephora’s regions, and now has experience as a deputy CEO at one of LVMH’s other operating divisions. That stands in stark contrast to Brok, who took over Sephora’s top spot in 2020 with experience at Nike, along with food and beverage companies Starbucks, Burger King and Coca-Cola
Brain care is a rising wellness category
There’s a new wellness trend in town. Self-care gained new meaning in 2020, when many people were stuck at home, some in solitude. Even after emerging from lockdown, many have retained their new outlooks and understanding on issues like work-life balance. In the case of wellness, the focus has been on mental health, giving way to a new term called “brain care.”
Brands operating in China are paying an increasing amount of attention to user-generated content on Xiaohongshu, which can offer genuine feedback that reflects the real needs of Chinese consumers, in turn helping brands to identify growth opportunities.
The beauty industry is worth billions of dollars, and it's no secret that insiders hold all the cards when it comes to cashing in.
Because of brand safety concerns resulting from Musk’s statements and behavior, major advertising companies including Interpublic Group and