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The Future of Beauty Retail Lies Online: Data, Trends, and the New Consumer Journey

Image Credit: From fragrance sets to milky toner, social media influencers and celebrities are carryingbreakout beauty trends into 2025. (Courtesy/BoF Team, 2025).

In 2025, as the digital-first era unfolds, the beauty and fashion industries are undergoing aseismic shift, evolving at a pace unprecedented in the history of retail. The proliferation of socialmedia, e-commerce platforms, and cutting-edge technologies, such as AI-driven personalization,is revolutionizing the way people shop for beauty products. A significant milestone in thistransformation is the surpassing of in-store sales by beauty e-commerce, a historic shift reportedby Women’s Wear Daily (WWD, 2025). This rapid growth signals a thrilling future for the beauty retail landscape.

The Digital Beauty Boom

Beauty brands have learned how to seamlessly blend entertainment and online shopping, fromTikTok Shop to Sephora’s virtual try-on experience. TikTok, Instagram, and YouTube are now the new beauty stores, where people can find, try, and buy products with just one tap. Influencers and famous people are now more effective at persuading people to buy things than traditional ads were.Rhode Skin by Hailey Bieber, Fenty Beauty by Rihanna, and Rare Beauty by Selena Gomez a real examples of how digital-native brands can dominate by being real and telling stories that go viral. Even established brands like L’Oréal, Estée Lauder, and Lancôme are rapidly evolving byinvesting in augmented reality (AR) experiences and data-driven marketing to attract youngercustomers

Challenges on social media, such as “Get Ready With Me” (#GRWM) or “No Makeup Makeup,”have made products like ILIA Super Serum Skin Tint, Byoma Moisturizing Gel Cream, andPhlur Caramel Skin Hair & Body Mist very popular online. TikTok is a powerful force in the beauty industry; it’s not just a platform to discover trends, but also a way to sell beauty products.

The Meeting of Aesthetics in E-Commerce and Fashion

Fashion and beauty are no longer as distinct as they once were. Zalando, ASOS, and Farfetch areall online fashion retailers that have expanded their offerings to include beauty sections. At thesame time, beauty platforms are adding fashion tie-ins and limited-edition collaborations. Forexample, Dior Beauty’s couture-inspired packaging resembles its runway collections, and GucciBeauty’s product campaigns feature stories from its fashion lines.Chanel, Prada, and Hermès are among the luxury brands that have successfully made beauty anaccessible way for people who aspire to emulate them to enter the market. Now, buying perfumeand lipstick online is the new “affordable luxury.” Louis Vuitton Beauty has recently collaborated with modern artists online, demonstrating how brands are utilising beauty to tell stories about lifestyle beyond fashion.

INFLUENCERS ARE THE NEW POWER IN RETAIL.

Influencers have emerged as the new arbiters of fashion and beauty sales, fundamentally altering consumer perceptions. Micro-influencers on platforms like TikTok and Instagram have become instrumental in brand growth, often generating more engagement than celebrity ambassadors.For instance, Alex Earl’s skincare routines and Mikayla Nogueira’s candid product reviews have generated millions of sales within hours, underscoring the profound influence these individuals have in shaping beauty trends.

Celebrities like Hailey Bieber, Ariana Grande (r.e.m. Beauty), and Kylie Jenner (KylieCosmetics) are no longer just the faces of campaigns; they are also the individuals who conceivenew products, establish community standards, and devise digital marketing strategies. Gen Z likes how real they are because they value honesty and being relatable over being perfect.

The Strength of AI and Data

Online beauty shopping is becoming increasingly sophisticated, thanks to the strategic use of AIand data by brands. AI-powered beauty advisors, personalized product recommendations, andtargeted product launches based on data-driven insights are revolutionizing the shoppingexperience. For instance, L’Oréal’s Perso app analyzes users’ skin and formulates customproducts at home, while Sephora’s Virtual Artist allows users to virtually ‘try on’ products beforemaking a purchase. These technological advancements are not just enhancing convenience but also ensuring a more personalised and satisfying shopping experience.

AI also helps brands spot trends before they happen. For example, it can identify newingredients, such as niacinamide, or skin finishes like “glass skin,” long before they becomepopular. As sustainability and personalisation converge, technology ensures that products meet both consumers’ moral and aesthetic standards.

The Future Is All Channels

Online beauty is growing faster than in-store beauty, but the future is in an omnichannelapproach. Pop-up shops, influencer meet-ups, and hybrid stores, such as Glossier’s flagship storein New York or Charlotte Tilbury’s virtual store, offer customers the best of both worlds: they canconnect with people in person while also shopping online. By 2030, the global beauty market isprojected to be worth over $700 billion. A significant portion of this growth will stem from digital sales channels that seamlessly blend shopping with social experiences.

Giving the Next Generation of Fashion and Beauty Leaders Power

Students in our Fashion Marketing and Management, Business Administration, and otherrelevant programs at Raffles learn about how digital commerce and brand storytelling impacttoday’s businesses. They know how to create brands that appeal to today’s digital consumer through real-world projects, collaborative efforts, and fashion events.

Arman POUREISA

Marketing Manager

Raffles Indonesia

www.Raffles-Indonesia.com

References

BoF Team. (2025). The top beauty trends to watch in 2025.The Business of Fashion.https://www.businessoffashion.com/articles/beauty/the-top-beauty-trends-to-watch-in-2025/

WWD. (2025). Online beauty spend is growing faster than in-store, data shows.Women’s Wear Daily.https://wwd.com/beauty-industry-news/beauty-features/beauty-ecommerce-online-sales-growth-tiktok-shop-1238265722/Statista. (2025). Global beauty and personal care e-commerce growth forecast 2025–2030.Forbes. (2025). The rise of social commerce in beauty: How Gen Z is reshaping the industry.Vogue Busine

ss. (2025). Luxury beauty meets digital transformation.
WWD. (2025). Online beauty spend is growing faster than in-store, data shows.Women’s Wear Daily.https://wwd.com/beauty-industry-news/beauty-features/beauty-ecommerce-online-sales

growth-tiktok-shop-1238265722/

Statista. (2025). Global beauty and personal care e-commerce growth forecast 2025–2030.

Forbes. (2025). The rise of social commerce in beauty: How Gen Z is reshaping the industry.

Vogue Business. (2025). Luxury beauty meets digital transformation.

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