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Amazon is planning a magnificence sale in October to draw early Christmas buyers

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Amazon employees load boxes of orders at the company’s fulfillment center ahead of Cyber ​​Monday in Tracy, California.

David Paul Morris | Bloomberg | Getty Images

According to documents verified by CNBC, Amazon plans to hold a beauty products event in October to attract early Christmas shoppers and strengthen the company’s position in a booming category.

A slide deck that Amazon sent to select beauty brands said the company is currently planning the event for October 4th through October 25th. The same information has been sent to some consulting firms that help manage businesses on Amazon.

“We want to bring customers back to Amazon during the Black Friday week but also in the long term with additional marketing levers,” wrote Amazon in the slide deck. “This is a unique opportunity for select brands to reach more buyers and new customers.”

Catie Kroon, an Amazon spokeswoman, confirmed the authenticity of the document. She emailed CNBC that next month the event will be called “Holiday Beauty Haul,” adding that the website will offer a range of product types, including fragrances, men’s grooming, and winter skin care.

Amazon, the world’s largest online retailer, has long been trying to get a bigger share of the global beauty market, which generates annual sales of $ 500 billion. The company started offering health and beauty products in 2000, but initially its selection was mostly limited to mass-market brands.

The beauty market is of particular interest now as consumers flocked to the internet to buy makeup and personal care items during the pandemic. Online makeup sales rose 40% year over year in 2020, while sales of “self-care” items such as shampoo, face washes and lotions rose 59%, according to research firm 1010data.

Amazon hopes to use the event to drive traffic on upcoming Christmas promotions, said a consultant who had conversations with Amazon and asked to remain anonymous as the conversations were private. The company began contacting beauty brands and consultancies in mid-August to assess attendance at the event, said Jed Rawson, CEO of e-commerce consultancy Pirawna.

While Americans were largely stuck inside during the 2020 holiday season, they were spending a record amount of money on their devices, according to Adobe Analytics. According to Adobe, online purchases in the US in November and December rose 32.2% year over year to $ 188.2 billion

In recent years Amazon has expanded its “Premium Beauty” sub-category to include additional high-end products and opened an indie beauty store to highlight new and emerging brands. In addition, special hair care departments and a dedicated skin care brand were introduced.

Kroon said that beauty is one of the fastest growing categories on Amazon and that it is “ripe for innovation” when it comes to product discovery and presentation. Amazon is “uniquely positioned to reinvent the experience of buying beauty products online,” she wrote.

The October event could also help Amazon better compete with retailers like Ulta Beauty and Sephora owned by LVMH, said Elaine Kwon, who was previously a vendor manager in Amazon’s fashion category and now heads consulting firm Kwontified. Department stores are increasingly losing market share in the beauty market to Ulta, Sephora and direct-to-consumer brands such as Glossier and ColourPop.

Kwon said Amazon was trying to increase its market share by bringing more leading brands to its website and experimenting with features like a “clean beauty” tag that picks up on trends around natural and sustainable products.

“Sephora and Ulta have been very, very successful in protecting their customer base,” said Kwon. “That’s how Amazon tries to reach out to these customers and give them a great experience that makes them think, ‘Maybe I don’t have to go to Sephora for all of these things, maybe I can go to Amazon for that or that.'”

SEE: Amazon CEO Andy Jassy’s full interview with CNBC

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