Consumers have thousands of health and beauty brands to choose from, and that pool has only grown larger as the global economy expands. To keep up with the competition, merchants recognize the need to innovate both online and in their physical stores.
What’s more, 61 percent of health and beauty merchants stated that “they would not survive” without innovation, according to the latest version of the Retail Innovation Readiness Index. However, only about 35 percent of merchants say they’re prepared for it.
To gear up for innovation, many are turning to smart POS systems and other technologies to enhance the in-store experience, and deploying consumer-facing applications and tools for online.
For merchants across three distinct categories of health and beauty, nearly 62 percent of merchants said customer loyalty was the reason they were innovating. However, merchants need to compete for the skilled talent and the resources needed to bolster innovation, which can leave some straggling behind their competition.
In this edition of the Retail Innovation Readiness Index, an AEVI collaboration, we gauge 18 essential factors that make or break health and beauty consumers’ shopping experience, and measure how prepared merchants are to innovate and able to retain customer loyalty.
Key Takeaways from the Index
- 61.7 percent of merchants said customer loyalty was their top reason for innovating
- 44 percent of merchants are very interested in smart POS systems, although many have yet to implement them
- Only 37.6 percent of merchants in health and beauty have a website, merchants report
About the Tracker
The Retail Innovation Readiness Index, powered by AEVI, aims to offer a firsthand account of what drives retailers to invest in or forego certain innovations. PYMNTS surveyed more than 600 retailers across three different sectors to gauge innovation readiness.