How beauty brands can win the holiday season with speed, unboxing, and personalization

By Cassandra Stern

- Last updated on GMT

"When it comes to beauty and personal care, the gift sets that allow the recipient to test a few products, rather than committing to one, are the items that see a clear increase from Black Friday onward," said Ricky Choi, CEO and co-founder of Outerspace. © miniseries Getty Images
"When it comes to beauty and personal care, the gift sets that allow the recipient to test a few products, rather than committing to one, are the items that see a clear increase from Black Friday onward," said Ricky Choi, CEO and co-founder of Outerspace. © miniseries Getty Images
With nearly 60% of holiday shoppers expecting a premium unboxing experience and two-thirds willing to wait longer for personalized gifts, beauty brands face a critical opportunity this season, according to a recent survey from logistics company Outerspace.

As the holiday season approaches, beauty and personal care brands are seeing heightened demand and unique challenges in meeting consumer expectations. Outerspace, a third-party logistics company specializing in beauty brands, recently conducted a survey in partnership with Pollfish to gain more significant insights into holiday beauty consumer trends.

The survey asked 1,000 online shoppers in the US between the ages of 18 and 64 a series of 11 questions regarding their shipping, unboxing, and return preferences.  

We spoke to Ricky Choi, CEO and co-founder of Outerspace, for his insights into the survey's findings regarding important shifts in consumer preferences and critical strategies for brands aiming to optimize fulfillment, enhance customer experience, and build brand loyalty.

Fast fulfillment for turn-key products

One of the main insights from Outerspace's survey is the high demand for fast shipping, particularly for gift sets and sample kits, as consumers seek convenient options for holiday gifting. Choi highlighted that these items see a "clear increase from Black Friday onward."

"No matter which brand we're fulfilling product for, there's always a clear increase in demand for low-emotion, turn-key items that make for easy gifting," Choi said, adding that gift sets, in particular, are expected to be popular as they allow recipients to explore multiple products without committing to a single item. As a logistics company, Outerspace is leveraging these findings and addressing this trend by pre-building sample sets for their partner beauty brands, ensuring these popular items can be packaged and shipped within a single business day, a critical service for brands looking to meet peak demand promptly.

This expectation for speed, however, is not universal. Choi noted that consumers are more flexible with shipping times for non-essential products like home decor and jewelry, showing a willingness to wait for certain beauty products. "My hunch is that when purchasing a beauty product they're trying for the first time or gifting to someone, shoppers will be more patient with shipping times—especially if the brand has a distinct unboxing experience or a free sample with purchase," he explained. 

The unboxing experience: A key differentiator

In a competitive market, many beauty brands invest in an elevated unboxing experience, particularly for younger consumers who value premium packaging. The Outerspace survey determined that "nearly three in five (57%) shoppers expect a premium unboxing experience when purchasing directly from a brand — and younger generations are more likely to expect it."

As a result, according to Choi, the unboxing experience is an integral part of a brand's identity. "The unboxing experience should hold as much weight as a brand's website, because every step of the purchasing experience contributes to a customer's perception of the brand," he stated.

Outerspace's approach to unboxing involves carefully curated packaging, samples, and informational materials that reflect the brand's image and messaging, and Choi advised that brands looking to cater to younger generations should view premium unboxing as an investment, one that has the potential to build customer loyalty and distinguish a brand from competitors on third-party marketplaces.

The power of personalization in driving sales

Personalization is another significant trend, especially as more consumers seek unique, meaningful gifts. Choi highlighted that "offering personalization and customization options is a savvy way for brands to make products feel higher-value and more giftable during the holidays."

Outerspace's survey supports this notion, showing that two-thirds of consumers are willing to wait longer than six days to receive personalized products. This willingness to wait can be a strategic advantage for brands, especially as customized orders are frequently final sale, reducing the volume of returns that typically surges after the holiday season.

Addressing returns to maintain customer loyalty

For beauty and personal care brands, a smooth returns process is essential for maintaining customer loyalty. Outerspace's survey found that ease of returns was a significant consideration for over half of respondents when deciding whether to make a repeat purchase and, perhaps even more significantly, that "93% [of respondents] say easy returns are important when they purchase directly from a brand."

"Any adjustments brands can make to their returns policies to ensure a frictionless experience for customers are essential," Choi advised, noting the increased likelihood of repeat purchases when returns are convenient.

Holiday trends in beauty categories: Skin care and fragrance lead the way

Within the beauty sector, specific categories are expected to perform exceedingly well. Outerspace's data concluded that skin care and fragrance products are forecasted to be top sellers due to their relatively low emotional investment for buyers compared to cosmetics or hair care products, where consumers may already have strong brand preferences.

As a result, Choi recommended that brands take advantage of this trend by offering sample kits for skincare and fragrance products, as these kits can foster long-term customer loyalty. "While this may result in a lower average order value in the short term, it's more likely to cultivate a relationship with a customer and result in them returning for a repeat purchase of the items they enjoyed from their sampling," Choi concluded. 

Related news

Related products

show more

EuroLock Twist-to-Lock Spray Pump: No Cap No Leaks

EuroLock Twist-to-Lock Spray Pump: No Cap No Leaks

Content provided by Aptar Beauty | 16-Oct-2024 | Product Brochure

Discover the convenience and reliability of EuroLock, the innovative twist-to-lock spray pump designed for today’s fast-paced lifestyle. Manufactured in...

Get up to $500 off IGEN™ Non-GMO Tested Program!

Get up to $500 off IGEN™ Non-GMO Tested Program!

Content provided by SGS Nutrasource | 04-Jul-2024 | Insight Guide

The cosmetics industry has seen unprecedented growth in recent years, and with this growth comes a rising concern for what’s inside our everyday products.

Exosomes: Passing Trend or Transformative Reality?

Exosomes: Passing Trend or Transformative Reality?

Content provided by Naolys | 26-Mar-2024 | White Paper

Exosomes, microscopic vesicles naturally present in abundance within Plant Cells, have garnered significant attention within the scientific and cosmetic...

Related suppliers