No need for a makeover of online beauty product sales

Despite the recent closing of Gloss.com, web shoppers clearly like purchasing beauty products online, says a new report from The NPD Group, a New York consumer research firm.

The study estimates that web shoppers spent about $1.7 billion purchasing cosmetics and related products online in 2006. That figure accounts for about 4% of total beauty product sales, which NPD estimates at $42 billion in 2006.

Online shoppers who purchase beauty products are diverse, but most women use the web to browse and make a purchase because it’s more convenient than shopping in a store, the report says.

The NPD report, which includes a response from about 4,200 participants, indicates that women ages 45-64 make up about 41% of all online beauty shoppers, while women 18-34 account for another 36%. A total of 70% of women in the survey shop online because it saves time and money. “Consumers have become more wired and they are more likely to research, choose and replenish beauty brands online,” says NPD senior beauty industry analyst Karen Grant. “Women are less accepting of buying new brands over the Internet, but they are spending their money on brands they know and trust.”

The sites shoppers visit most frequently include, Drugstore.com, No. 35 in the Internet Retailer Top 500 Guide; Sephora.com, No. 120; Avon.com, No. 29; Clinique.com., a unit of Estee Lauder Cos. and No. 330; and BathandBodyWorks.com, the report says.

There has been consolidation among online beauty products sites. For instance, Estee Lauder last week closed down Gloss.com, No. 180 in the Internet Retailer Top 500 Guide.

But NPD Group says more shoppers will continue to make their purchases online, especially older women with annual household income of more than $75,000. “Baby Boomer women are just as likely to shop on the Internet for beauty products as their younger counterparts,” says Grant. “Women ages 45-64 make up a large segment of the Internet shopper base and this age group will become increasingly more important as it’s the fastest growing segment of the population.”