The overwhelming majority of sales for the $300 billion personal care industry happen offline, with online sales just beginning to make a dent. However, in the past year, signs of change have prompted CPG conglomerates to act. Three-year-old Dollar Shave Club now has two million active members, and has claimed to surpass Schick in razor cartridge volume sales. The Honest Co., recently valued at $1.7 billion, is posing a similar threat to diaper companies. It obtains 80% of its revenue from diaper subscriptions, which show consumer appetite for a better shopping experience than drugstores and supermarkets.
Leading the charge to adapt the personal care industry to digital is Procter & Gamble, which owns eight of the top 10 brands benchmarked in L2’s 2015 Digital IQ Index: Personal Care. Behind this improvement (Last year Kimberly-Clark had the highest Enterprise IQ) is numerous site relaunches leveraging its scale. Approximately half of P&G brands (among them Always, Gillette Venus, Secret, Tampax) have migrated to a common enterprise template. Other enterprises are also moving towards stronger digital assets, although not at the same speed. Unilever’s Axe, for example, finally let go of its Adobe Flash-based site.
Where are these site investments focused on? A graph from the L2 study shows brands are emphasizing site sophistication, while omnichannel features are falling behind. Adoption of store locators has fallen to 42% from 60% in 2013, whereas 85% of the 53 brand sites tracked are offering keyword search.