A recent report revealed that 73% of executives said that the COVID-19 pandemic impacted on their supply base, leading to actual supply stress.
While demand for products increased, the immediate and most obvious impact of the global crisis was that of supply.
The confusion and lack of understanding of the pandemic itself are among the main issues that contributed to constricted supply. Consequently, the flow of goods across borders stalled owing to safety precautions that retailers and suppliers needed to understand and then implement.
Plus, there was a need to understand the local lockdown regulations and how they affect trade before goods continue to flow from their country of origin.
All these issues can be applied to the beauty supply chains. However, the impact of the pandemic extends beyond just the beauty industry. It’s no wonder that 94% of Fortune 1000 companies saw disruptions in the supply chain owing to the crisis.
While the interconnectedness of supply chains is an advantage in the modern world, the pandemic crisis quickly showed it to be a weakness. This is because the key players hadn’t fully understood the inner workings of the supply chains.
COVID-19 As a Factor of Import in the Beauty Industry
No matter where you are right now, the pandemic has changed things, including the supply chain in the cosmetics and personal care industry.
To put this into perspective in the US for example, the market value of beauty and personal care products is worth an estimated $93 billion. In addition, the Personal Care Products Council reports that the industry contributes over $235 billion to the GDP and employs over 3.6 million people.
When the virus outbreak hit China, many companies that felt the effects of the crisis shut down their operations to stem the spread of the pandemic.
Many such companies had increasing pressure from their customers as they were afraid their products wouldn’t get shipped out on time. In fact, a lot of them considered not putting much of their reliance on China going forward.
World governments began to ponder over the future of supply chains in a bid to have more control over product quality and supply chain risks. The US government, for instance, already has the Executive Order on America’s supply chain, which seeks to review vulnerabilities in supplies of critical goods.
These moves by governments to reshore or move supply chains back to their home countries have their benefits. However, it would still be challenging to make the change as it will take many years to build up a supply chain network that’s as established as those of China.
Plus, companies will have to consider whether consumers would be willing to pay a premium when they’re used to buying beauty products for cheaper.
With the virus affecting Europe and the US, companies are now returning to China for their manufacturing needs because their own supply chains were affected. In the long-term, post-COVID, it’s expected that things will return to normal.
Sourcing Reliable Beauty Suppliers on Digital Platforms
Finding a cosmetics and beauty product supplier for your business can be tricky especially during and after the pandemic. There are several factors to consider including the type of product, your budget for manufacturing, and where you’d like the product manufactured.
However, it’s an exciting time in the beauty industry for anyone considering setting up a beauty business.
You’ve probably considered the areas where your business can add the most value and are focused on a particular beauty niche where you see the greatest opportunity for growth.
The challenge lies in finding the right supplier, which can be tough and sometimes frustrating.
Disruptions in the supply chain have also highlighted the need for localized supply chains while encouraging people to buy local and focus on sustainability.
However, there’s also been a shift towards online sourcing platforms for beauty products.
A good example of such a platform is Beauty Sourcing, an online platform for entrepreneurs in the beauty and wellness space to source, connect and learn.
The platform helps Chinese beauty suppliers by powering them with digital commerce solutions and services.
With the restrictions imposed on various meetings and events across the world due to the pandemic, it’s hard for buyers to find reliable suppliers without networking face-to-face.
Beauty Sourcing mitigates this challenge by offering an efficient way for buyers to source and shortlist reliable and qualified Chinese beauty suppliers who actively attend beauty trade shows.
The platform also has a Beauty Academy through which industry leaders can get resources, showcase their innovation, and recognize or share challenges with others in the industry.
The academy is also an avenue through which the leaders can find information delivered through interviews and a series of online webinars. You can check out the latest webinars like How the Beauty Industry is Adapting the Trend of Beauty and Wellness and Beauty ingredient Innovation and Trends for 2021.
Before joining the alliance for premium Chinese beauty suppliers, Beauty Sourcing does the qualification review to ensure that they’re truly manufacturers and not just ordinary traders of beauty products.
Buyers can also benefit from the latest trends and innovations around the world as Beauty Sourcing attends all beauty trade shows to bring innovative product vendors and buyers together.
Time for Future-Ready Beauty Sourcing Function
The pandemic may have disrupted the beauty industry and challenged the reliability of supply chains.
While the crisis has been a global struggle, it highlighted the need for a more responsive and stronger relationship between buyers and suppliers. In addition, the crisis highlighted that a collaborative approach is the only way to find a resolution.
With a future-ready beauty sourcing platform, it’s easier for buyers to source quality beauty products from China and meet the demand in their respective markets.
Beauty Sourcing not only ensures that you get reliable suppliers, but that buyers are able to identify changing demand patterns and quickly meet those needs while thriving as successful businesses in future.