Walmart deploys Premium Beauty shop to “elevate” online brand engagement and retail experiences

28 Aug 2024 --- Walmart is ramping up its presence in e-retail for luxury cosmetics with the launch of Premium Beauty on Marketplace. The site will be integrated within Walmart’s digital marketplace and include over 20 new brands like Cosrx, T3 and Beachwaver in addition to its existing assortment of skin care products and hair tools. 

Backed by custom storefronts and editorial content, Premium Beauty at Walmart is intended to convey an “elevated, seamless brand experience.”

Walmart leaders unveiled this among several initiatives at the ongoing Let’s Grow! 2024 Walmart Marketplace Seller Summit. Next to the category expansion, notable announcements from the summit included multi-channel fulfillment and new features that “simplify selling across markets.”

“We’re executing strategic priorities at Walmart that are helping us to become the customers’ first choice — every day, every season, for every item. Walmart Marketplace is a key component of that mission,” says Tom Ward, executive vice president and chief e-commerce officer at Walmart US.

“We know the importance of personalized, seamless omnichannel experiences and Walmart continues to advance its digital and fulfillment capabilities, including the new categories and features we announced today that enhance the overall customer and seller experience on Walmart.com.”

E-commerce beauty boom
Softer demand in traditional brick-and-mortar beauty retail, particularly in China, coupled with the rise of streamlined delivery brought by advances like drone deliveries, are among notable factors driving established brands to accelerate e-commerce engagement.

Walmart Marketplace reportedly saw more than 30% sales growth in each of the past four quarters.Partnerships with established e-commerce giants are evidently sustaining growth, as seen in Chantecaille’s recently announced domestic partnership with Tmall (Alibaba Group), China’s leading online retail platform.

This week, Shiseido’s Drunk Elephant deployed its new “DrunkGPT” chatbot to enhance customer interactions. The “24/7 AI-powered” skin care assistant responds to inquiries — from product recommendations to skin care tips.

LVMH Group also recently extended its partnership with Alibaba Group to grow its luxury presence online.

Walmart Marketplace reportedly saw more than 30% sales growth in each of the past four quarters and is “significantly driving” sustained e-commerce success, the retailer highlights.

The company’s global e-commerce sales surpassed US$100 billion last year, and its US e-commerce business has delivered double-digit growth for six consecutive quarters. 

Walmart cites increasing “innovative customer experiences” and an “omnichannel assortment” as the main drivers of sustained momentum.

The company highlights that the number of sellers listing items on Walmart’s website grew 20% last fiscal year. While Walmart is the world’s biggest retailer, its e-commerce business remains significantly smaller than its main rival, Amazon.

By Benjamin Ferrer