Amazon Eyeing Cosmetics Market

Amazon Eyeing Cosmetics Market

Amazon is the international e-commerce giant, known for its sales platform which makes buying things easy. Soon, Aussies will be able to buy cosmetics like hair extentions in Bondi, or the like, as the tech titan is looking to add 200 luxury beauty brands to its line-up of available products.

The company recently unveiled their plans to roll out cosmetic products across their AU operations, starting with 200 brands of what the company calls ‘luxury and salon’ brands. These include names like Chanel, Oribe, Clinique and Eve Lom and Diptyque, among others, with more reportedly set to follow for release on the company’s site.

Amazon Australia Country Manager Rocco Braeuniger says that Amazon Australia is fully aware of how seriously Aussies take their beauty regimes, which is why they’re adding cosmetics to their line-ups. He and the company is hoping that their Aussies will be pleased with the range of beauty products that finally lets them access these beauty brands.

This development comes out of left field, as IBISWorld Senior Industry Analyst Kim Do said that Amazon, despite its size and global reach, isn’t really associated with ‘luxury’ brands. Regardless of how surprising the move from Amazon is, it’s going to put pressure on brick-and-mortar sellers, like Myer.

Ms. Do says that, on top of that, Amazon entering the market will just add more challenges to the ones already faced by departments stores, given how much competition the tech giant can bring. She says that they’re already facing competition from online marketplaces in fashion and homewares.

University of Tasmania Marketing Lecturer Dr. Louise Grimmer says that Amazon’s move into luxury cosmetics might be aimed at customers that would’ve been patrons to specialty stores like Mecca, effectively meaning that the tech giant is basically taking the fight up to these specialty stores. The doctor says that this is because Amazon has seen that stores like Mecca are leaders on the marketplace, and Amazon has opted to get their own share of the pie.

Ms. Do agreed that Amazon’s move puts pressure on high end retailers, but postulated that they weren’t the target, specifically.

The Australian cosmetics market, with all of its brands, and names and hair extentions in Bondi, is extremely competitive, with the Aussie-grown make-up manufacturer Napoleon Perdis being one of the latest casualties.

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