Posted On Sep 01, 2022.

Amazon is making a bigger bet on luxury beauty. Today, Dr Barbara Sturm Molecular Cosmetics will go live on Luxury Stores at Amazon in Europe, marking the first skincare addition to the retailer's storefront dedicated to high-end brands.

The German-owned line is offering a range of over 50 products on the platform, with more brands slated to follow soon. Dr Sturm’s line is also sold at high-end retailers such as Harrods, Saks Fifth Avenue and Space NK, as well direct-to-consumer on the brand’s website.

Luxury Stores at Amazon launched in the US in September 2020, targeting a more affluent customer with a focus on fashion. It was rolled out to Europe in June 2022, carrying brands such as Elie Saab and Christopher Kane. Now, the Luxury Stores space will carry beauty and skincare alongside fashion in both markets. 

According to a spokesperson for the company, the new beauty section of Luxury Stores at Amazon will carry a range of both “established and emerging luxury brands”, and will serve as a complement to the existing Premium Beauty selection, which stocks more widely available masstige brands.

Amazon’s spokesperson said the move to add beauty came from consumer demand in Europe, and that they would be offering “tools and a synergistic environment” to help luxury brands grow on the platform. In the past, many premium and luxury brands have declined to join online marketplaces due to the lack of personalisation available on the landing pages – generally speaking, all brands will have a page with the same colour scheme and font, and will not be able to add much in the way of bespoke brand assets. Amazon claims this has changed with Luxury Stores, which it says is an “elevated experience” that includes enhanced autoplay imagery and in-motion graphics. Brands are still independently responsible for inventory, selection and pricing.

Grey market activity, wherein genuine goods are sold without the approval of the trademark owner, has been another hurdle. In 2020, cosmetics conglomerate Coty sued Amazon over the sale of Davidoff fragrances, a Coty licensee, after discovering Amazon had stored and dispatched bottles of the fragrance from an unauthorised retailer from one of their warehouses. Germany’s Federal Court of Justice, where the case was tried, ruled in favour of Amazon. Amazon declined to comment on whether further action against grey market activity will be taken as the business tries to appeal to more luxury brands, who are more susceptible to such threats.

Beauty, especially premium beauty, is a lucrative market. According to the market research firm NPD Group, sales of prestige beauty products increased 23 per cent in the first six months of 2022 compared to the same period in 2021. The group attributes much of this dynamism to the popularity of more potent, science-backed formulas, also noting that consumers are upgrading their purchases to those with a higher price point across a number of categories, including foundations and fragrances. In the UK alone, the prestige beauty market was valued at £926 million in the first half of 2022, per NPD. Skincare has been an especially resilient category throughout the pandemic, and beauty tends to be relatively recession-proof, with many consumers still continuing to treat themselves to cosmetics as means of a mood boost in difficult times.

Dr Sturm’s best sellers include Glow Drops and Hyaluronic Serum. Launched in 2014, price points range from around £18 for a small sized cleanser up to the triple digits for serums and skincare sets. The brand also makes hair care products and oral supplements.

“As a doctor, the cornerstone of my work is to always be of service to my patients and an important part of that is making sure my products are easily accessible and delivered to their doorsteps seamlessly. Luxury Stores at Amazon gives me that opportunity,” says Dr Barbara Sturm of the partnership. Luxury Stores in the US also features Alexa functionality, including a routine finder that pairs customers with products from the range, and offers answers to common skincare questions.

Original Article : Amazon Ramps Up Luxury Push With Bet On High-End Beauty