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Gartner L2 Digital IQ Index
The 2015 Digital IQ Index: Hair Care & Color assesses the digital performance of 70 Hair Care brands, spanning both Consumer and Professional product segments. While e-commerce penetration significantly lags benchmarks set by other Beauty categories, brands are overcoming lingering fears of product diversion by actively engaging with select online retailers. Among brands tracked since 2013, those linking to online retailers now outnumber those supporting direct e-commerce by a 2:1 margin. These proactive investments in channel control signal an end to the era of non-participation in online commerce. This year’s study significantly expands analysis on brand visibility and merchandising efforts observed across leading e-tailers.
Hair Care & Color 2015
June 30, 2015
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Hair Care represents the third largest segment by overall revenue size in the $76 Billion U.S. Beauty & Personal Care market yet, hamstrung by challenging ship to weight ratios, the category places seventh in terms of online sales volume. Only 1.4 percent of hair care retail sales are from online sales. Other than eBay and Avon, the most commonly cited online destinations for beauty-related purchases are all multi-brand retailers. 95 percent of hair care brands can be found on at least one of six leading e-tailers examined, with the average brand returning product results on at least three platforms. In fact, those linking to online retail partners now outnumber those supporting direct to consumer sales by a ratio of 2:1. The, downstream handoffs from those etailers have grown in sophistication. Over 20 percent of brands promoting retail partners mimic full cart functionality on-site, including confirming inventory availability prior to referral. While Hair Care brand sites are becoming more shoppable, they are not partner-agnostic. While over a quarter of brands now link to Drugstore.com, Walgreens, and Walmart, only six percent actively refer customers to Amazon. This year’s report cites three Genius brands. Aveda leads the pack with Superior e-commerce experience showcasing user reviews, customer testimonials, auto-replenishment, and extensive customer support options as well as a robust email marketing strategy. L’Oreal Paris has the highest search visibility across over 500 category keywords. Its site hosts an Extensive beauty library and array of consultation tools. Garnier earned a top spot with its new mobile-first interface, impressive growth in video views and a persistent cart functionality signaling product availability. This study attempts to quantify the digital competence of 70 Hair Care & Color brands in the U.S. market. Members can download the full report at L2inc.com.