Finnish personalised digital beauty experiences company Revieve, which works with many of the world’s biggest brands, retailers and digital service providers, has analysed online beauty shoppers’ habits from last year’s holiday season and shared the insights and recommendations based on these findings.
According to the company, there were some significant shifts in consumer behaviour and engagement during the 2023 holiday season.
It also said that brands that used interactive and AI-driven beauty solutions “achieved remarkable growth.”
CEO Sampo Parkkinen said that this year “beauty brands must be prepared to meet evolving consumer expectations.”
Increased interest in skin care during holiday season
Overall, there was a 47% increase in overall average order value (AOV) including a 61% spike in skin care AOV, as consumers prioritised premium and personalised solutions.
One key pattern the company spotted was that there was an increased demand for skin care products in December 2023 and that 90% of engagement focused on skin care routines, which massively outpaced makeup.
It said premium skin care was a topic of interest for consumers and that there was a particular emphasis on morning and evening regimens.
The data showed a high demand for hydrating solutions in the skin care category, especially night creams and moisturisers and sales of these surged by +147.8%. This was particularly noticeable in Northern Europe, where winter weather pushed more people to buy richer skin care options.
In terms of colour cosmetics trends the results were polarised. While bold, statement looks were in demand for eveningwear, there was also a 28% rise in demand for neutral, 'no-makeup' makeup kits as holiday gifts too.
“This shift reflects consumers’ evolving preferences for versatile, everyday beauty products alongside more festive, glamorous options,” said Revieve.
Luxury and sustainability were in demand
Luxury beauty products were generally in demand last holiday season, as 75% of virtual try-ons were for high-end products.
Revieve said that this trend presented a valuable opportunity for brands to push limited-edition luxury bundles or exclusive holiday sets.
Sustainability also took the spotlight, with 53% of users favouring natural, minimalist looks; 33% opting for cruelty-free products; and 30% opting for organic options.
Surge in virtual try-on
Virtual try-ons jumped up by 31% from Q3 to Q4 in 2023, underlining how interactive experiences are becoming a must-have in the shopping journey.
There was also a 74% increase in user interactions and consumers showed heightened engagement with AI-powered experiences compared to the same period in 2023.
Revieve said that “immersive experiences are no longer just a nice-to-have; they’re a necessity.”
Opportunities for cross-category gifts
Cross-category gift bundles (eg skin care paired with wellness items) performed exceptionally well, outpacing the single-product gift sets that were more popular in previous years.
“This highlights a new way brands are tapping into holistic gifting trends,” said Revieve. “A particularly intriguing highlight is the unexpected power of cross-category shopping to amplify consumer engagement. When consumers paired products like lipstick (24.24% of total Virtual Try-On engagement) with blush (12.74%), it drove a staggering 43.5% surge in products tried on.”
Strategic insights for holiday sales in 2024
Overall, based on the data, Revieve shared the following recommendations for brands to maximise sales in the holiday season in 2024.
- Enhance personalisation through interactive AI tools to capture elevated engagement rates.
- Focus on sustainability and eco-conscious offerings to meet growing consumer demand.
- Bundle products and leverage virtual try-ons to boost AOV and drive cross-category purchases and highlight exclusive holiday sets or bundles.
