Health and Beauty Specialist Retailers in Chile

2021 DEVELOPMENTS

Resumption of social gatherings supports improving sales of health and beauty specialist retailers

The gradual resumption of most social situations over the course of 2021 supported improving sales through health and beauty specialist retailers in Chile. Beauty specialist retailers witnessed the return of consumers to categories beyond skin and personal care, with new international brands such as It Cosmetics and Anastasia Beverly Hills increasing competition and creating interest amongst local consumers.

Drugstores and chemists show notable return to pre-pandemic levels

Drugstores/parapharmacies and chemists/pharmacies, while not showing the highest growth rates within health and beauty specialist retailers, were able to fully recover to pre-pandemic value sales levels in 2021. The reopening of offices and educational institutions, as well as increased mobility, resulted in greater footfall to these stores.

Optical goods stores gradually recover but still feel the delay in product renewal

While the reopening of the economy and the reactivation of in-person shopping has led to improving sales for optical goods stores in 2021, the channel’s overall value remained lower than pre-pandemic levels. While chained players have leveraged their e-commerce operations by connecting with consumers via social media platforms and increasing the number of products available, and online native players have gained ground by offering innovative and fresh trends, in-store shopping remains more subdued, especially in terms of purchasing spectacles or contact lenses.

PROSPECTS AND OPPORTUNITIES

E-commerce expected to continue to exert strong pressure on in-store sales

E-commerce is predicted to continue to gain ground within the channel, with Chilean consumers increasingly buying optical goods and drugstore items online following their experiences during the pandemic. As digital tools and augmented reality continue to be incorporated into the shopping process, e-commerce sales are set to continue to grow, especially as restrictions on in-store capacity and the use of face masks are likely to remain in place in the short term.

Promotions and push from other retailers set to remain

Promotional activities will continue to be key for the channel’s recovery, but with inflation rates set to continue to increase over the forecast period, promotional activities will be a problem for retailers in terms of value sales, and an attractive solution for consumers. Retail prices are already strongly affected by sales seasons such as Black Friday and Cyber Monday, and consumers look closely at the prices being quoted for products in-store, helping them to find the best deals available.

In-store services and experiences to gain in importance over the forecast period

To remain competitive, health and beauty specialist retailers need to incorporate a wider range of in-store services and experiences, with those launching personalised services or able to better connect with their customers via social media also set to be well received by consumers. The use of in-store technology to make product selection easier remains low, with most only offering the possibility to place an online order for products not available.