The beauty and personal care industry has proven through numerous cycles that it is extremely resilient to economic swings, however, we believe that there will be landscape-changing implications from COVID-19. While certain themes will be short-lived, we expect others to drive medium- and long-term shifts in brand strategies, sector subcategories, and consumer behavior. The key to thriving in the post-COVID environment will depend on a brand’s ability to stay connected with its consumer and fulfill and serve their evolving demands. As with all disruptions, we see many opportunities ahead for new brands to emerge, new subsectors of growth and ultimately, plenty of M&A and dealmaking in the near- and long-term.
With the rapid spread of COVID-19 and the ensuing global pandemic, quarantine (or the more consumer friendly “shelter-in-place”) has become a daily reality across the country. While some of us have been able to transition seamlessly to a work from home paradigm, the reality for the global consumer has changed drastically. A wave of retailers, including Ulta, Sephora, Macy’s, Nordstrom, and Glossier have closed their brick and mortar stores – some of which may never reopen. Beauty and personal care companies saw in-store sales come to a screeching halt and overall consumer spending on their products drastically decline online as in-person meetings became a thing of the past. Click the link to read the full report.
About FocalPoint Partners, LLC
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements, financial restructurings, and special situation transactions. The firm provides advisory services to middle market clients in eight industry sectors: aerospace and defense, business services, consumer, energy, financial services, healthcare, industrials, and technology/media. With offices in Los Angeles, Chicago, New York, and Shanghai, and affiliated partner offices around the world, FocalPoint’s domestic and international coverage is truly global. Visit focalpointllc.com and follow us on LinkedIn and Twitter.