Next and Boohoo "wisely investing" in UK online health & beauty market, says GlobalData
Next and Boohoo’s decision to launch their own health & beauty ranges is a "wise investment", according to GlobalData.
The UK online health and beauty market is forecast to grow at a compound annual growth rate (CAGR) of 10.4% between 2019 and 2025, equivalent to £6.6 billion in 2025.
The data and analytics company noted that Next and Boohoo will now be able to meet the increasing demand for convenience as shoppers will be able to buy clothing and beauty items in one place, while appealing to those looking to cut back on costs.
Next has developed Woah, its own brand of vegan skincare, featuring 16 products suited to the majority of skin types. Boohoo has launched its own vegan range of makeup comprising of 50 products that are cruelty free.
Juliet Cuell, Retail Analyst at GlobalData, commented: “By branching out into own brand beauty, these two retailers are taking a step in the right direction as shoppers are set to trade down on health & beauty products as they face increased living costs in 2022. While many may turn to discounters, including Savers, Aldi and B&M, own brand health & beauty ranges will appeal to those who want to spend less, but still want to purchase items with certain product credentials including vegan friendly, which discounters tend not to offer.”
Boohoo has priced its products to cater to its young consumers, who typically spend less on health & beauty. Cuell added: “Boohoo could suggest make-up products that would go well with partywear pieces when shoppers are browsing clothes to encourage impulse purchases.”
Next has priced its Woah skincare range below Boots’ No.7 range even though Woah products have an additional benefit of being vegan friendly. If Next expands its new skincare range, GlobalData predicts it will have the potential to steal spend from Boots.
Cuell concluded: “Online pureplays including Feelunique and Lookfantastic – which do not currently have their own brand – must not become complacent or they risk falling behind. To differentiate from clothing retailers’ own brand beauty, online pureplays should develop ingredient-focused (such as vitamin C), organic skincare and makeup that is affordable.”