How coronavirus is affecting the beauty industry worldwide

Splashed over every headline, coronavirus’s impact can be felt throughout the world. The beauty and personal care industry is no exception, feeling the impact of the pandemic. As travel warnings are issued and people take extra precautions in hygiene – the beauty industry looks to project how these current issues will affect their sales in the upcoming year.

Asian markets unsurprisingly are the hardest hit in the wake of the virus. Even with one of the biggest holidays of the year, Lunar New Year kicking off the start of the year. Asian markets saw disappointing figures in comparison to previous years with the unforeseen events.

 

Sa Sa, Hong Kong-based Cosmetic retail giant announced 21 store closures in the city of Macau. Putting the decision down to cost cutting measures as the current health crisis continued to affect sales. Sales reportedly dropped 78% in the first week of the Lunar New Year.

Shiseido, multinational Japanese skincare, makeup and cosmetics producer, saw Chinese sales fall 55% during the Lunar New Year holiday compared to the same period last year according to a report published in the Japan Times. They attribute the loss to less tourists visiting the region in the height of hysteria. Masahiko Uotani, Shiseido President, “We haven’t projected the effect on earnings as we don’t know how big a blow the virus will deal to our businesses,” he said. “We hope to give a clear projection when we report midterm earnings.

 

LVMH-owned cosmetic retailer Sephora puts hygiene precautions in place in the wake of the virus, cancelling all classes and beauty services done in store. As makeup brushes and makeup have the potential to transmit infections if not properly cleaned. Sephora looks to limit their liability in the event that a customer or employee was to contract the virus following a beauty service delivered instore. Sephora’s pro-active measures echo its commitment to its customers and employee health.

Estee Lauder Companies, global cosmetic leaders reported a 15% increase in net sales for Q2, describing its performance for the quarter as ‘exceptional’. Quoting skincare as its best category, thanks to strong performing brands like La Mer. Asia-Pacific regions also reported a 29% leap in sales, however Fabrizio Freda, President and CEO, cautioned that they would pay close attention to the health crisis that Coronavirus imposes on the global health climate.  “In the wake of the recent coronavirus outbreak, we are first and foremost concerned about the health and safety of our employees, consumers and everyone affected in China and around the world. The global situation will also affect our financial results in the near term, so we are updating our fiscal year outlook. With our results to date and our agility in allocating resources, we will strive to deliver full-year growth at least in line with our long-term goals, even in this challenging moment. We will be ready to return to our growth momentum as the global coronavirus outbreak is resolved.”