Much has been said about the visibility of mass brands on Amazon, but what about Ulta – the one-stop beauty shop that sells a mix of mass, prestige and salon beauty products?
Search on Ulta.com is skewed in favor of mass brands, even though prestige brands are showcased more prominently. Mass brands control twice the search real estate of prestige brands for relevant keywords, and half of the top 10 brands with the highest search visibility are mass. Mass brands outpace prestige brands in reviews as well, with an average of 210 reviews for top performing SKUs vs. 72 for prestige brands.
Last year, Ulta CEO Mary Dillon laid out aggressive expansion plans: opening 100 additional stores per year, and raising e-commerce sales to 10% from 4%. As of now, over two-thirds of brands in L2’s Mass Beauty Index sell on Ulta vs. just over half of Prestige Beauty brands. Prestige brands could benefit from increasing their distribution and investment on the fast-growing platform.