There’s a large movement in beauty towards services. It’s a backlash or preventative measure, as the internet takes an increasing share of the market (21% according to IBIS World in 2016, to put that in context the Australian average is around 8%).
This is a market where the store has moved from product to experience (aka service).
It’s worthwhile noting why this is so much higher than the Aussie average. Cosmetics and skincare are replenishment purchases –  you find it once and then continue to buy the same product again and again with little thought. Take foundation for example, you find one you like and you’ll tend to buy the same one for the rest of your life (Ladies you know what I’m talking about. So the internet plays perfectly to this behaviour – it removes the hassle of having to go to store.
That’s where services start to play a part – it’s something the internet can’t replicate.
Here are our top picks of beauty brands moving their stores from product to service:
The cult Aussie skincare brand has started to experiment more with services. It’s worthwhile noting that they do offer treatments in 7 cities globally (Australia, France, Germany, Hong Kong, Japan, US, and USA). So the new, news is that they’re opening up a pop-up in their Paris Office on Rue Saint-Honoree. The pop-up will offer facials and beauty treatments – 6 in all and all priced at around $220AU. The simplicity of that feels very Aesop. The store will be in operation from mid Jan until April.
After experimenting with Sephora Institut a couple of years ago in Paris (basically a treatment room), they are now rolling out services in their French stores from a Make-Up Bar, Nail Bar, Brow Bar, to Perfume Engraving station (put your name on the bottle – pic below). They’re nice steps towards services…and they nicer when you look at their US offer – beauty studio. Offering everything from customer makeovers to personal one-on-ones.
3.Lancome and Nordstrom
Taking it one step further than just your basic service, they’re looking at creating personalised makeup. In partnership with Nordstrom, Lancome have launched Le Teint Particulier – Custom foundation. It’s pretty cool – and totally tech enabled, check out the video below.

As you can see the world of beauty if turning of product to service – as the internet has creating a market that competes on price. It’s a great lesson for other categories in what to do when the internet starts eating your product sales.