Reading the Fospha State of Beauty report (again) and some thoughts occur.
Modern e-commerce is moving away from a “sell everywhere” approach toward a channel-category specialization model. Based on current performance data, here is how the ecosystem is segmenting:
Social Commerce (TikTok/Instagram Shop): Primarily Beauty. The high-visual impact and “get the look” impulse drive immediate conversions here.
Entertainment Commerce (YouTube/Twitch): Beauty, Fashion, and Gaming. This relies on long-form trust and influencer storytelling.
Retail Media Networks (Walmart/Tesco/Target): CPG & FMCG. These excel at capturing the “digital aisle” for household essentials and grocery.
Marketplace Specialists (eBay): Parts, Accessories, and Collectibles. High-intent searches for specific, non-commoditized items.
Circular & Secondary Markets (Vinted/Poshmark/Depop): Pre-loved Fashion. Driven by sustainability and the “thrill of the hunt” for unique pieces.
Value-Dense “Everything” Stores (Amazon/Temu): Everyday Essentials. The battleground for constant value, logistics, and low-cost convenience.
Live Shopping (QVC 2.0/TalkShopLive): Home Appliances & Lifestyle Accessories. Best for products requiring a “demo” or high-touch explanation.
Sports & Fandom (Fanatics): Licensed Merchandise. A category defined by emotional loyalty rather than price sensitivity.
Luxury & Heritage (Farfetch/MyTheresa): High-end fashion where the channel must provide white-glove service and authentication.
Health & Wellness (iHerb/Hims & Hers): Subscription-based models for supplements and personal care where trust and recurring delivery are paramount.
High-Consideration Tech (Best Buy/B&H): Electronics that require technical specs and expert reviews rather than social hype.
Hyper-Vertical Home (Wayfair/IKEA): Big-ticket items that rely on AR visualization and specialized logistics (even if delivery remains a punchline).
As we navigate all the other challenges of our industry - this is something that has proven to make sense.