Study: Amazon makes big strides in capturing health, personal care, food shoppers
SANDY, Utah — Amazon is gaining a significantly larger share-of-wallet for everyday household items — and the retailer continues to build momentum.
Across the U.S. housewares, health & personal care and beauty industries, the online retailer has a combined average year-over-year growth (YoY) rate of 38%, compared to the total retail market's combined growth average of 6%, according to research from One Click Retail. The firm uses a combination of website indexing, machine learning and proprietary software to estimate weekly online sales figures at the SKU level on Amazon.
As Amazon far outpaces total retail growth YoY in American household purchases, the retailer is on track to cause serious disruption to the U.S. superstore, grocery and drug store channels. This can be credited to millennials who are spending more than twice as much as other demographics when purchasing household items online, the report said.
Specifically, Amazon’s growth rate in housewares is three and a half times that of the total U.S. domestic market. The housewares product group proved to be one of the main drivers of Amazon's 2016 success, accounting for 15% of the company's YoY sales growth in 2016. Housewares, including home and kitchen, generated almost $7 billion in sales for Amazon in 2016, a significant increase over 2015's $5 billion plus, the study revealed.
When it comes to health and personal care sales, Amazon’s are growing close to 5 times faster YoY than the total domestic market, with significant increases in nutrition & wellness (+ 40%), baby care (+ 30%), household consumables (+ 55%), and health care (+ 45% YoY growth).
Amazon Prime Pantry's immense growth this year illustrates the success of subscription-based e-commerce initiatives. Items that historically struggled online can now be packed alongside other pantry items and shipped in a single box, bringing shipping costs down.
Despite the fact that total retail market growth of beauty and cosmetics sales in the U.S. is a stagnant 2%, Amazon sales have skyrocketed by 47% YoY. Skincare products and men's products are the drivers behind Amazon’s beauty product group’s growth. Amazon's success in this product group is driven by the sale of a very large volume of small, inexpensive items.
The future success of drug stores and supercenters will be dependent upon whether they consider selling on Amazon, introducing their own online sales strategy or choosing to do nothing at all, according to the report.
"What we're currently witnessing is e-commerce finally beginning to disrupt everyday household products, with Amazon leading the pack," said Spencer Millerberg, OCR's CEO. "Consumers benefit from buying these items in bulk, and having them delivered right to their doorsteps. Our numbers continue to demonstrate just how significant these everyday items are in helping to drive Amazon's exponential YoY growth."
American Provenance intros Natural Baby line
MT. HOREB, Wis. — Natural personal care brand American Provenance is expanding its offerings with the unveiling of its Natural Baby line of products. The three-product line includes such ingredients as coconut and almond oils, aloe vera and argan oil.
Among the products is the Natural Baby diaper cream, which contains shea butter to soothe irritated skin, coconut oil to keep it healthy and beeswax to keep excess moisture out. It also contains moisture-absorbing bentonite clay. The company also is introducing Natural Baby baby wash, which contains coconut, olive and jojoba oils for antifungal properties and moisturization, as well as rosemary flower extract and aloe vera. Rounding out the line is the American Provenance Natural Baby baby oil. It contains coconut, sweet almond and marula oil for replenishing and healing damaged skin, as well as argan oil and chamomile.
American Provenance said it plans to roll the products out to its retail partners in April, noting that they’re currently available on the company website. Among the retailers that carry the brand are Whole Foods locations in Ill., Ind., Mo. and Wis., as well as at Hy-Vee locations in eight states.
The products' suggested retail prices are $9 for the baby oil and body wash and $14 for the diaper cream.
Dial launches 3 body washes, foaming hand wash
SCOTTSDALE, Ariz. — Henkel’s Dial brand on Wednesday announced the introduction of three new products this year, following a year in which the brand won three national beauty awards.
In 2016, Dial’s coconut water body wash won Allure’s Best of Beauty Best Steals award, its advanced bar soap won Family Circle’s Best Beauty Buy for bar soap and its advanced bar soap was among People StyleWatch’s best new beauty products under $25 and “things you never knew you needed.
Now the brand is unveiling two new body washes and a foaming hand wash. Dial coconut milk and hibiscus water body washes are currently available for a suggested retail price of $4.49 at grocery, drug and mass retailers. And Dial Complete Kitchen Collection foaming hand wash, formulated to kill 99.99% of common kitchen bacteria, also is available with a suggested retail price of $2.49. The hand wash comes in Fresh Lavender and Citrus Sunburst scents.
Dial said it also is launching Dial for Men Recharge Revitalizing body wash at grocery, drug and mass retailers with a suggested retail price of $4.49.
“As a brand that works diligently to ensure our products provide quality and affordable care for everybody, Dial is honored to have been recognized for our commitment to healthy skin,” Henkel Body Care VP marketing Justin Giouzepis said. “Dial is excited to take the success of 2016 and continue it throughout the new year.”