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TikTok鈥檚 potential ban isn鈥檛 putting brands off TikTok Shop: The platform鈥檚 sales potential is driving companies like Rare Beauty and Tarte Cosmetics to deepen their investment.

Online shopping is popular across all demographics, but the where and how differs by age, culture, and interests. Current purchasing behaviors can help retailers and brands target digital shoppers and anticipate new trends.

Sales growth for cosmetics and beauty will increase at more than twice the rate online than through physical retail channels this year, according to our February 2024 forecast. While ecommerce is stealing market share, its sales only tell a portion of the buying story. Physical stores are still key to discovering beauty products and brands, finding the right shades, and testing formulations鈥攁nd Walmart is making use of its omnichannel footprint to take advantage. Here鈥檚 how.

Shoppers want help: Too many choices online can overwhelm consumers and leave them frustrated by the effort required to make a purchase decision.

L鈥橭r茅al鈥檚 Aesop purchase is the company鈥檚 biggest yet: The beauty giant is spending $2.53 billion to stake a larger claim to the highly profitable luxury skincare category.

UK ecommerce sales have bounced back to steady growth as consumer spending remains resilient despite inflationary pressures. Most major categories will see a further shift online by 2027, bringing opportunities for ecommerce retailers.

By the end of 2024, Sephora will operate over 1,000 shop-in-shop locations at Kohl鈥檚 stores across the US. But if Sephora wants to launch a free-standing small-format store, a college campus would be a great place to start. 85% of Gen Z teens prefer to shop for beauty products in-store, according to Piper Sandler鈥檚 spring 2024 Taking Stock with Teens survey.

Gen Z women trust beauty influencers: Roughly eight in 10 Gen Z women shop for creators鈥� beauty and personal care recommendations.

Beauty is proving resilient to the cost-of-living crisis as shoppers splurge on premium products to boost their mood and skin health. But it won鈥檛 escape unscathed, with consumers already streamlining their beauty regimes and searching for bargains online.

Gen Z teens cut spending in response to inflation: Shoppers in this cohort are shopping more often at off-price and ecommerce retailers to save money, although the beauty category is as resilient as ever.

The beauty and cosmetics sector brought in $94.36 billion in consumer spending last year, claiming the title of the fastest-growing retail category in the US, per our The US Beauty Consumer report. With most consumers planning to boost their beauty budgets in 2024, the sector鈥檚 defiance against cautious spending habits is set to continue, driven by the enduring 鈥渓ipstick effect,鈥� the rise of dupes and Chinese-associated ecommerce giants, and more.

TikTok Shop gears up for busy holiday season in the US, UK: The platform expects hefty ecommerce and ad growth this year as shoppers get used to transacting on the app

DoorDash鈥檚 efforts to broaden the array of merchants on its marketplace鈥攆rom restaurants to grocers to retailers like Ulta Beauty and Lowe鈥檚鈥攅nabled it to attract a broader array of customers, as well as grow order frequency across verticals.

The insight: Just as TikTok Shop鈥檚 rapid rise disrupted the ecommerce landscape, so too could its sudden demise. While some brands brace for a 鈥渄oomsday鈥� scenario following TikTok鈥檚 ban, other companies see an opportunity to win sales. Potential winners: Amazon, Etsy-owned Depop, and Rue21 are among the retailers best positioned to benefit from a TikTok ban, according to a report by Earnest Analytics.

Gen Z is also searching where it鈥檚 shopping. More than half of Gen Zers who used social platforms for product discovery or shopping had done so on TikTok or Instagram鈥攖wo of the most popular platforms for social search鈥攊n the preceding month, per our survey. Pinterest is a shopping standout.