Business
OFM Business Hour: Health, beauty industry rebounds─── OLEBOGENG MOTSE 19:13 Thu, 02 Feb 2023
The health, personal care and beauty industries rebounded in the last 12 to 18 months to pre-Covid levels.
FNB retail industry specialist Warren Pratt tells the OFM Business Hour that some businesses have reported turnovers exceeding what they earned prior to 2020. The industry was one of the hardest hit by the pandemic and accompanying stringent lockdown restrictions. The good news is that things are on the mend and Pratt shared the strategies that businesses in this space have introduced to recover.
E-commerce ‘has become quite big’
In September 2021, Julia Ahlfeldt, a customer experience professional, told the OFM Business Hour that the e-commerce market in South Africa matured as a result of Covid-19, with 82% of respondents shopping online and 73% of them coming from households with a monthly income of R10 000 or less. This is echoed by Pratt, who says e-commerce has become a popular option for the personal care and beauty industries, with many brands now being available for purchase online.
New product range
The FNB retail industry specialist says brands have brought in new product ranges to cater to a broader customer base. He says one of their clients expanded their product range from about four products to well over 20 over the course of 12 to 15 months. They have seen some brands venture into male grooming as well.
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Relocation, reduction in store sizes
Some beauty companies have reduced their store sizes and redesigned their look and feel to be more appealing to their customers and attract a new customer base, especially male customers. Others have opted to move into anchor stores, like Dischem in malls, to take advantage of the foot traffic.
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Predictions for 2023
Pratt anticipates that the industry is only going to grow stronger from here, despite load-shedding. "While there has been a decline in retail sales with fewer people visiting malls, the brands within the industry are destination visits and shouldn’t be impacted by this decline as the outlook is positive," concludes Pratt.
