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Department stores in the U.S. are losing customers to TikTok

In the $129 billion U.S. market for cosmetics and personal care products, there is a fierce competition between traditional department stores and... social media, Logos Press reports.
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Department stores in the U.S. are losing customers to TikTok

According to market research firm Euromonitor International, the largest online seller of cosmetics and personal care products in the country is Amazon, which is gradually adding premium cosmetic brands to its huge range.

Earlier, customers preferred to buy expensive cosmetics from upscale stores and beauty departments of department stores as it gave assurance of the quality of the product. In addition, it was possible to get qualified assistance from consultants there.

Now these functions are performed by social networks, according to the Euronews article. Social media provide new sources of personal care advice. Instead of consultants in stores, many shoppers are turning to videos of influencers, cosmetic brand founders or dermatologists for advice. Shoppers are also turning to TikTok and Instagram for information about “knockoffs,” cheap versions of expensive products.

“Stores are more like showrooms, but the spark originates in TikTok,” comments Jake Bjorseth, founder of advertising agency Trndsttrs.

To keep up with changing customer sentiment and stay ahead of the competition, companies with both physical and online stores are investing in modernizing them. For example, Macy’s and Nordstrom have renovated the cosmetic floors of their flagship New York stores, adding more space, ultra-luxury brands and cutting-edge technology.

Department stores are implementing some of the self-service features in pursuit of cosmetics sales: Nordstrom has installed a “beauty bar” with brightly lit mirrors where shoppers can sample cosmetics from different counters while trying to differentiate themselves from specialty and online competitors.

Macy’s store in Herald Square has installed comfortable chairs and skin-analyzing devices to boost sales of hundreds of dollars worth of products.

In the Parfums de Marly section, shoppers try fragrances while wearing a virtual reality headset that immerses them in the atmosphere of an 18th-century chateau, which the French fragrance maker cites as its inspiration.


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