Health and Beauty Specialist Retailers in Italy

2021 DEVELOPMENTS

Rise of proximity stores fits with the growing focus on sustainability

In 2021, health and beauty specialist retailers rebounded from dips in retail current value sales, number of outlets and selling space in 2020 due to the effects of the Coronavirus (COVID-19) pandemic on footfall and trade. The pandemic saw consumers look closer to home for their shopping needs as consumer movement was severely restricted.

Players invest in personalised services as consumer lifestyles and customer experiences change

More consumers in Italy are shifting their preference towards specialised retailers of health and beauty products, at the expense of more generalised retailers in the category. For example, vitamins and dietary supplements specialist retailers gained ground in the wake of the pandemic, which increased awareness of and the demand for vitamins and dietary supplements as consumers looked for immunity from the effects of the virus and improved and healthier diets, in general.

New CEF La Farmacia Italiana app responds to the shift to omnichannel retailing

The aim of the new app from CEF La Farmacia Italiana is to support the move to omnichannel retailing in line with the changing demands of Italian consumer, while strengthening the relationship between the customer-patient and pharmacist. The functionalities of the app, which are activated only with the involvement of the individual pharmacy, include classic services like consultation in line with the opening hours and services provided (with possible reservations), a selection of news on health and wellness, integrated loyalty cards, the sending of the “NRE code”, the identification code of the electronic prescription.

PROSPECTS AND OPPORTUNITIES

Omnichannel approach offers ways to build brand profiles and better serve consumers

Prior to the outbreak of the global pandemic in 2020, major retailers active in e-commerce were already using data to identify ongoing trends and traffic flows and be better positioned to offer advice on products and purchases. In the forecast period, physical and e-commerce retailers are expected to go beyond data collection and surveys and use data to track consumer trends and changes in shopping behaviour in near real time.

Live streaming set to be combined with in-store experiences to maximise interaction between the brand and consumer

Within health and beauty specialist retailers, live streaming shopping is expected to grow as a concept over the forecast period. Live streaming shopping involves organised live sessions, where customers are guided through branded stores and shown products via a virtual experience of personalised shopping.

Payment by instalment and subscription services to gain consumer loyalty and hasten purchases

Many consumers prefer to buy from retailers that offer instalment services, offered in partnership with payment and purchase service companies like Scalapay, Klarna and Clearpay. In practice, at the checkout the payment can be split into three interest-free mini instalments, with the consumer providing some personal data, such as the tax code, and a credit/debit card.