Herax Partners – Insights for Investment and M&A – Part 2: E-Commerce and Social Media
25/07/2023 by The Red Tree
Between 2015 and 2022, the e-commerce sector in the beauty industry experienced an impressive growth, almost quadrupling its size.
This trend has been particularly evident during 2020 and 2021. Initially, e-commerce was projected to experience gradual growth throughout 2020, but the pandemic accelerated this growth to the extent that a year’s worth of progress was achieved in just three months.
A noteworthy 82 percent of the population now accesses the internet, with 52 percent specifically going online for shopping purposes.
Although still comparatively modest compared to more developed markets, this marks an improvement from the pre-pandemic figure of 48 percent. Currently, e-commerce accounts for over 20 percent of the beauty market share, and there is still ample room for further expansion.
Alongside the rising adoption of e-commerce, social media has gained significant traction in the Middle East region.
Emiratis stand out as avid users, dedicating almost three hours daily to social media platforms. Moreover, they possess more social media accounts per person than any other country. Dubai, in particular, has become synonymous with fashion and beauty influencers. These influencers have successfully introduced products to the market, specifically designed to cater to the unique beauty preferences and requirements of women with Middle Eastern heritage. Their offerings include for example a range of inclusive colour cosmetics or halal-certified items to meet the specific needs and preferences of their target audience.
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