While some retailers in Asia reported a wave of 'revenge spending' once Covid-19 restrictions were eased, there are concerns that consumer confidence in bricks-and-mortar is at a low. So what should retailers do in the case of excess inventory?
With beauty retailers in the UK due to reopen on 15 June, the management and sale of inventory will be a pressing concern for many.
But what steps can retailers take now to ensure they are not left with a mountain of unmovable stock?
Ronen Lazar, CEO and co-founder of inventory solutions specialist INTURN, talks to Cosmetics Business about how to capture rebound demand and why driving discounts low should be considered with caution.
How can beauty brands expect consumers to react when lockdown restrictions are eased?
The majority of consumers believe COVID-19 will trigger a recession.
The result is that discretionary spend on beauty or fashion products has declined 60% and 70% respectively. That said, consumers have increased savings by 30%.
When looking at consumer behavior post quarantine period, there are numerous factors to consider.
The majority of consumers have indicated that they don’t plan to shop in brick-and-mortar stores for the foreseeable future.
This will create a challenging environment for the beauty marketplace where in-store shopping accounted for up to 85% of beauty-product purchases prior to the Covid-19 crisis.
However, some retailers in Asia have reported that consumers went through a revenge spending phase once...
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