Rather than taking it lying down, the industry has been doing its best to fight back against the disruptions of COVID-19. This article will cover some of the ways that the industry has been coping.
Online launches
Now that trade shows and expos are temporarily canceled due to public health risks, many beauty companies are taking their product launches online. By doing so, they can still reach their audience without endangering the lives of both their customers and employees.
Expo West 2020 was set to have over 3,000 exhibitors and 86,000 attendees but got canceled due to the pandemic. The Vegas PMU Conference opted for online streaming to give exhibitors the exposure they need – albeit not as much as a physical event would’ve garnered.
This goes to show that even the most noteworthy conventions aren’t exempt from the reach of this virus. Companies are seeing massive drops in their revenue because they’re simply losing the opportunity to promote their products at events.
eCommerce over brick and mortar
More and more cosmetic companies are transitioning to an eCommerce business model since the foot traffic in shopping malls has decreased by 60%. It’s unclear if long-time industry leaders will make the shift in time or see their downfalls like Nokia and BlackBerry.
It’s far too easy to fade into obscurity if you don’t move with the times.
Revlon’s first quarter shows an 18% decline in their net sales, while L’Oreal saw a 4.8% drop in their sales during the same period. In fact, one of the things that helped Fresame maintain strong sales figures throughout the pandemic is its strong online distribution network and loyal customers who order online and have the product safely delivered to their homes.
Increase in local sourcing
With supply chain problems caused by closed borders resulting from the pandemic, the beauty industry has been gravitating toward local sources. These challenges aren’t all bad, the influx of new money into local resources is increasing economies where beauty companies reside. With this new force in the economy, one might expect to see a sort of renaissance within the local industry – something Fresame is proud to be a part of.
In addition to partnering with local suppliers, vertical integration is also becoming more common, with beauty companies taking cues from the automotive giant, Tesla, on how to ensure steady supply and high margins while manufacturing everything locally.
After all, sourcing locally is not only cheaper but also supports the surrounding economy.
Remote workers
Most employees in cosmetic companies have gone remote, opting for a work-from-home arrangement to prevent the spread of COVID-19.
This skeletal system has been effective at minimizing infection since R&D and QA staff are the only ones required to physically go to work at cosmetic facilities.
Modern technology has eased this transition and showed many companies that going remote is easier and safer than they thought.
What you can do
If you want to support the Latinx beauty industry, the best thing you can do is continue to buy high-quality products from manufacturers like Fresame and share Latinx product lines with your friends. At the end of the day, it’s often individual consumers that sustain industries in times of hardship.
Our products are cruelty-free and made with the finest ingredients to ensure you get the most bang for your buck.