Consumers of all ages aren’t limiting themselves simply to buying local brands; increasingly, they see the world as one unified storefront, creating a path for brands and retailers to accelerate international expansion. DTC e-commerce channels enable brands to enter new markets and territories faster and with less capital investment. A DTC-first international strategy not only has the potential to increase revenue and build loyalty but also primes the markets for wholesale success.

ESW conducted a global survey of more than 16,000 consumers in 16 countries. Clarissa Schealer, ESW’s VP of Sales, Beauty, Wellness & Lifestyle Brands, said of the data, “In an industry that has reframed itself around scarcity, exclusive drops, and limited inventory, this new data is quite counterintuitive to the trends beauty influencers tout on TikTok.”

The Numbers:

• Millennials and Gen Z consumers are more likely to shop across international borders for beauty products. Gen Z (23%) and millennial shoppers (24%) made beauty purchases cross-border over the last 12 months.
• Seven in 10 customers who make international beauty purchases plan to spend as much or more in 2023.
• Nearly 41% of consumers surveyed in China purchased beauty products from online retailers outside of their home country, followed by the United Arab Emirates (UAE) (36%), Switzerland (29%), Spain (26%), and India (22%).
• The countries cross-border shoppers purchased from most frequently were the United States and France, each tied at 33%, followed by Germany (27%) and the United Kingdom (25%).

Power Shoppers:

• ESW defines these customers as those who spend more than $2,500 (adjusted for local currencies) per year on online purchases.
• 30% of global shoppers in the survey are Power Shoppers.
• 32% of these shoppers purchase directly from a brand, 31% from a specialty retailer, and 25% a members-only online store.
• 38% of Power Shoppers are also price sensitive and considered Bargain Beauty Shoppers.

Schealer added, “Younger consumers are driving the growth in the direct-to-consumer beauty market, yet despite their spending power, they remain very price conscious. Creating limited edition products, or offering top customers early access to new products, can help brands overcome price sensitivity in the beauty industry’s key demographic.”