Pretty in the Pandemic: How Covid-19 changed Online Purchasing Behavior for Decorative Cosmetics in Gen Z females

Nadja Montereale

Master's thesis

Pretty in the Pandemic: How Covid-19 changed Online Purchasing Behavior for Decorative Cosmetics in Gen Z females in the German Market

Abstract:

The German decorative cosmetics industry includes cosmetics for the face, lips, eyes, nails, and natural cosmetics. With lockdowns, mask mandates, mandatory home office and online schooling, the multibillion-dollar industry suffered financial losses as a result of Covid-19 in 2020. The cosmetics business is concerned about future consumer intentions and behavior because of the reduction in consumption. Thus, the objective of this study was to identify, explain and understand the changes in buying behaviors and attitudes related to decorative cosmetic use among German Gen Z females. The findings were later used to create a recommended action plan that cosmetic businesses could use to adapt to these changes and capture the interest and spending of this generation. For that matter, n=10 Gen Z participated in qualitative interviews and n=196 Gen Z in an online questionnaire using a mixed-methods approach. The findings revealed a massive shift to online shopping while also keeping the importance of physical retail channels such as drugstores and perfumeries. The importance of reliance on user-generated content on social media, reviews and testimonies was found in the data. The respondents stated to value ingredients, price, and ratings for cosmetic purchases. Based on these insights, an omnichannel experience through connected physical and digital environments with the integration of social media testimonies and reviews on the digital platforms was suggested.

Abstract:

The German decorative cosmetics industry includes cosmetics for the face, lips, eyes, nails, and natural cosmetics. With lockdowns, mask mandates, mandatory home office and online schooling, the multibillion-dollar industry suffered financial losses as a result of Covid-19 in 2020. The cosmetics business is concerned about future consumer intentions and behavior because of the reduction in consumption. Thus, the objective of this study was to identify, explain and understand the changes in buying behaviors and attitudes related to decorative cosmetic use among German Gen Z females. The findings were later used to create a recommended action plan that cosmetic businesses could use to adapt to these changes and capture the interest and spending of this generation. For that matter, n=10 Gen Z participated in qualitative interviews and n=196 Gen Z in an online questionnaire using a mixed-methods approach. The findings revealed a massive shift to online shopping while also keeping the importance of physical retail channels such as drugstores and perfumeries. The importance of reliance on user-generated content on social media, reviews and testimonies was found in the data. The respondents stated to value ingredients, price, and ratings for cosmetic purchases. Based on these insights, an omnichannel experience through connected physical and digital environments with the integration of social media testimonies and reviews on the digital platforms was suggested.

Keywords

Decorative Cosmetic Industry, Covid-19, Consumer Behavior, German Gen Z

Keywords

Consumer Behavior, German Gen Z, Decorative Cosmetic Industry, Covid-19

Language used: English

Date on which the thesis was submitted / produced: 11. 5. 2022

Thesis defence

• Date of defence: 31. 5. 2022
• Supervisor: Václav Stříteský
• Reader: Daniela Kolouchová

Vysoká škola ekonomická v Praze

Master programme:
Management