Omnichannel Excellence in the Beauty Industry: Navigating a New Era of Retail

The retail industry is constantly evolving, but the fundamental change in recent years is that the customer is now in charge. In beauty, this shift has underscored the importance of an omnichannel approach—a strategy that merges online and offline experiences into one seamless journey. The business of retail is in a constant state of change—and it’s the customer who is in charge. That means beauty brands must cater to new and varied consumer demands across all touchpoints. This strategy goes beyond merely selling products; it’s about creating meaningful experiences that drive loyalty, engagement and long-term growth.

The Modern Beauty Consumer: Fast, Slow and Everything In-Between

Today’s beauty consumers want more than just products. They expect brands to offer value, convenience and experiences tailored to their unique shopping missions. These expectations intensified during the pandemic when digital channels became a primary means of interaction. While e-commerce sales surged, the absence of physical experiences rekindled appreciation for brick-and-mortar stores, especially as customers now expect seamless, personalised service both online and offline.

Andy Lightfoot, CEO of SpaceNK explains that SpaceNK caters to two types of shopping missions:

“We look at two shopping missions—we call them the ‘Fast Customer’ and the ‘Slow Customer’. Fast knows what they want, and good service to them is in and out. Slow wants a level of engagement, to browse, interact with staff, and be educated. What differentiates is how to cater to both.”

This dual approach emphasises the importance of flexibility. A customer may seek efficiency one day and a personalised, hands-on experience the next. Meeting these varied needs requires retailers and brands to create adaptable in-store environments that cater to every type of customer.

The world of retail is in flux and for brands to succeed they must be change-ready and able to flex to different needs of different customers. ILG has the flexibility and bandwidth to accommodate changes in demand as our clients’ strategies evolve and the channel mix ebbs and flows. So as brands extend their product portfolios, diversify into different markets or target new customer profiles, we are ready to scale up or reconfigure our operations to work with change and future-proof their growth.

The Crucial Role of Operational Excellence in Omnichannel Success

Seamless omnichannel experiences rely not only on strategy, but on flawless execution behind the scenes. Operations and logistics are crucial to supporting omnichannel growth and delivering a consistent brand experience, from digital to physical touchpoints. As Tom Ashley, Managing Director of ILG, highlights:

“It’s never been more important to deliver that consistent experience from in-store to online. We try and replicate that brand philosophy and signature on the customers doorstep, especially when statistics show that 85% of consumers who have a poor delivery experience will not purchase from that brand again.”

A successful omnichannel strategy hinges on operational excellence, which includes the flexibility to adapt to customer preferences. ILG works with beauty brands like Trinny London and Charlotte Tilbury, ensuring that their fulfilment operations support a seamless customer experience. By providing multiple delivery options, packaging choices and even personalisation, ILG empowers brands to meet individual customer needs. As Tom Ashley explains:

“Ultimately different customers have different needs and so the power of choice is really important at the time of checkout. Some customers are working from home, so free slower delivery is fine, and making cost and carbon impact sense, but others are desperate for their product and want it the same day. Giving that power of choice back to the consumer is key and allowing them to extend into actual personalisation, deepens the bond between brand and consumer further.”

These operational details are as critical to customer loyalty as product quality, community engagement and brand values, especially when a single poor experience can jeopardise brand trust and retention.

Retention as the New Acquisition: Omnichannel’s Role in Driving Loyalty

The high cost of customer acquisition in today’s crowded market has led brands to focus increasingly on retention. Studies indicate that acquiring a new customer can be five to 20 times more expensive than retaining an existing one, and Bain & Co estimate increasing customer retention by just 5% can boost profits by 25% or more. Omnichannel strategies, which allow brands to maintain consistent, high-quality interactions with customers across multiple channels, are emerging as essential tools for driving loyalty. With omnichannel brands retaining 89% of their customers, compared to just 33% for single-channel brands, it’s importance in retention is key.

An omnichannel approach increases customer frequency and spend. As Andy Lightfoot observes:

“You generally see that spend is higher online and frequency higher in-store—it sounds counterintuitive. Therefore, an omnichannel customer doubles up their value—spends more frequently.”

This insight reveals the value of maintaining strong, interconnected channels that drive customers to engage with the brand across different platforms and nurture an ongoing relationship that boosts loyalty and lifetime value.

Omnichannel as a Key Value Proposition for Investors

A robust omnichannel strategy doesn’t just benefit customers; it also makes beauty brands more attractive to investors. Strong omnichannel performance demonstrates operational resilience, diversified revenue streams and adaptability, all of which are crucial in today’s market. Nnenna Onuba, investment advisor and former M&A banker, notes that investors are increasingly scrutinising business fundamentals, especially omnichannel capabilities.

“The market environment has changed—driven by cost of capital, which has raised significantly, and the need to take a more cautious approach,” she explains. “If you can demonstrate that omnichannel presence, it really does increase the perception of value to investors.”

By contrast, brands that rely heavily on a single channel are seen as high-risk, with limited resilience in the face of market disruptions. A well-executed omnichannel strategy reassures investors that the brand can weather challenges, adapt to consumer demands and generate stable revenue, making it a more attractive investment in a competitive landscape.

Conclusion: The Road to Omnichannel Excellence

In a modern retail landscape shaped by empowered consumers, omnichannel excellence is no longer optional for beauty brands; it is essential. From personalised experiences to operational efficiency, every aspect of the omnichannel approach contributes to a seamless, engaging and reliable experience that meets customers’ needs and exceeds their expectations. As Joel Edmundson, CEO of Hair by Sam McKnight, summarises:

“We have become much more polarised. Ultra-convenience is what we want. Equally, when we do go into stores, we expect staff to know more than ever.”

For beauty brands aiming to thrive, this means adopting a comprehensive omnichannel strategy that balances convenience with personal engagement, supported by operational excellence and community-building initiatives. The rewards for brands that succeed in this endeavour are substantial: stronger customer loyalty, greater resilience, and increased appeal to investors.

Achieve Omnichannel Excellence with ILG

ILG’s operations are geared to the needs of beauty omnichannel and offer brands the improved efficiencies and connectivity of processing orders from their e-commerce and wholesale and retail channels, all under one roof. We have the expertise and capacity to process millions of e-commerce orders across dozens of beauty brands every year, and offer a range of value-add services such as personalisation, gift-wrapping and returns. We also have the retail knowhow to comply with detailed retailer manuals and ship wholesale orders reliably to department stores, high street chains and independent outlets across the UK and EU. Longstanding relationships with the likes of Charlotte Tilbury and Trinny London demonstrate our ability to help brands scale from start-up to global phenomenon and operate effectively across multiple channels and markets.

Get in touch today if you’d like to find out more about our omnichannel fulfilment services for beauty brands.

The ILG Beauty Vibe Series

The ILG Beauty Vibe Series launched in October 2023 in partnership with beauty incubator and accelerator Beauty Vibe. The partnership’s aim is to create a community that inspires, supports and connects the leaders shaping the future of beauty.

The  Series began with a sold-out panel event discussing the future of Omnichannel, featuring Andy Lightfoot, CEO of Space NK, Nnenna Onuba, Beauty M&A Investor and Advisor, Joel Edmondson, CEO of Hair by Sam McKnight, Coraline Millena, Co-Founder of Millena and Tom Ashely, Managing Director of ILG. We have since ran two more successful panel events, The Power of Purpose and The Future of Influence. Visit our website for insights from all three and sign up for invitations to events, newsletters, industry reports, and more.